What an e-way bill is for
An e-way bill is an electronic document generated on the GST e-way bill portal before goods are moved by road. It records what is being moved, from whom, to whom, why and in which vehicle, so that tax officers can check a consignment in transit against a single number instead of a sheaf of papers.
It does not replace the invoice or the delivery challan. The goods still travel with those, and the e-way bill number is quoted alongside them.
When one is needed
Generally, an e-way bill is needed when goods are moved and the value of the consignment exceeds ₹50,000, including GST. That applies whether the movement is a sale, a transfer to your own branch, a return or a movement for job work.
For movement within a state, some states set their own, higher limits, so check the rule for your state. A few movements need an e-way bill whatever the value, such as goods sent to a job worker in another state. Some goods and some modes, such as non-motorised conveyance, are exempt.
Who generates it
- The registered supplier, when the supplier arranges the transport.
- The registered recipient, when the recipient arranges it.
- The transporter, if neither party has generated it before the goods move.
Part A and Part B
| Part | What it contains | Filled by |
|---|---|---|
| Part A | Recipient’s GSTIN, delivery PIN code, invoice or challan number and date, value, HSN code and reason for transport | Supplier or recipient |
| Part B | Vehicle number, or the transporter’s document for rail, air or ship | Whoever moves the goods; updated if the vehicle changes |
How long it is valid
For normal cargo, an e-way bill is valid for one day for every 200 km of distance, or part of it. Over-dimensional cargo gets one day for every 20 km. The validity runs from when Part B is first entered.
If goods are delayed, the validity can be extended around the time it expires, by giving a reason. An e-way bill can be cancelled within 24 hours of generation, provided it has not been verified in transit.
How it links to the e-invoice
If your business issues e-invoices, the invoice data registered on the Invoice Registration Portal can be used to generate the e-way bill directly, so Part A does not have to be typed again. Only the transport details need adding. Billing software connected to both systems does this from the invoice itself.
In short
- An e-way bill records a movement of goods by road and is generated on the GST e-way bill portal before the goods move.
- It is generally needed when the consignment value exceeds ₹50,000; some states set higher limits for movement within the state.
- Part A holds the invoice and delivery details; Part B holds the vehicle.
- Validity is one day per 200 km for normal cargo, and a bill can be cancelled within 24 hours.