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Comprehensive Guide to E-Way Bills under GST in India

This guide provides a thorough overview of the E-Way Bill system under India's Goods and Services Tax (GST) framework. It explains the requirements, components, and procedures for generating E-Way Bills, emphasizing compliance for seamless goods movement. The article also covers situations where E-Way Bills are not required, state-specific rules, and recent updates including the introduction of a second E-Way Bill portal. Businesses can use this resource to understand their obligations and navigate the E-Way Bill process efficiently.

📖 5 min read read🏷️ E-Way Bill

The efficient movement of goods for businesses, while maintaining compliance, can present a significant challenge. The E-Way Bill system, implemented under India's Goods and Services Tax (GST) framework, streamlines this process by ensuring proper documentation for every consignment, thereby enhancing transparency. But what exactly does an E-Way Bill entail, and how does it function in practice? An Electronic Way Bill (E-Way Bill) is mandatory for the movement of goods under GST, requiring transporters to carry it when consignments exceeding a specified value are moved across India.

Latest Updates

On June 16, 2025, the NIC announced the launch of a second E-Way Bill portal (https://ewaybill2.gst.gov.in/) effective July 1, 2025. This initiative, detailed in GSTN's advisory from the same date (https://www.gst.gov.in/newsandupdates/read/611), aims to reduce reliance on a single portal and ensure real-time data synchronization. The new portal is designed to synchronize E-Way Bill details with the main portal within seconds.

What is an E-Way Bill?

Under GST, an Electronic Way Bill is essential for transporting goods. A registered individual is prohibited from moving goods in a vehicle if the consignment value surpasses Rs. 50,000 (based on a single invoice, bill, or delivery challan) without an E-Way Bill generated on the official portal, https://ewaybillgst.gov.in/.

E-Way Bills can also be created or canceled via SMS, an Android application, or through site-to-site API integration by accurately entering the GSTIN of all involved parties. Upon generation, a unique E-Way Bill Number (EBN) is assigned, accessible to the supplier, recipient, and transporter.

What are the Components of an E-Way Bill?

An E-Way Bill consists of two main parts: Part A and Part B. The individual responsible for issuing the E-Way Bill must complete the following details in Part A:

  • Details of the recipient's GSTIN
  • Place of delivery (including PIN Code)
  • Invoice or challan number and date
  • Value of goods
  • HSN code
  • Transport document number (such as Goods Receipt Number, Railway Receipt Number, Airway Bill Number, or Bill of Lading Number)
  • Reasons for transportation

Part B, on the other hand, contains details related to the transporter, such as the vehicle number.

When Should an E-Way Bill be Issued?

An E-Way Bill must be generated when goods are moved in a vehicle or conveyance with a value exceeding Rs. 50,000 (either per invoice or as an aggregate of all invoices in a single vehicle). This applies to movements:

  • In relation to a 'supply'
  • For reasons other than a 'supply' (e.g., returns)
  • Due to an inward 'supply' from an unregistered person

For this purpose, 'supply' generally refers to:

  1. Sale: Goods sold with payment received.
  2. Transfer: Such as inter-branch transfers.
  3. Barter/Exchange: Payment made in goods rather than money.

Consequently, E-Way Bills must be generated on the common portal for all these types of movements.

For specific goods, E-Way Bills are mandatory even if the consignment value is below Rs. 50,000:

  1. Inter-State movement of goods by a Principal to a Job-worker, whether initiated by the Principal or a registered Job-worker.
  2. Inter-State transport of handicraft goods by a dealer who is exempt from GST registration.

Who Should Generate an E-Way Bill?

  • Registered Person: An E-Way Bill must be generated for the movement of goods exceeding Rs 50,000 in value, whether supplied to or from a registered person. Registered persons or their transporters may also opt to generate and carry an E-Way Bill even if the goods' value is below Rs 50,000.
  • Unregistered Persons: Unregistered persons are also obligated to generate E-Way Bills. However, if an unregistered person makes a supply to a registered person, the recipient is responsible for ensuring all compliance requirements are met as if they were the supplier.
  • Transporter: Transporters moving goods by road, air, or rail must generate an E-Way Bill if the supplier has not already done so. They are not required to generate an E-Way Bill (using Form EWB-01 or EWB-02) when all consignments in the conveyance:
    • Individually (single document) are less than or equal to Rs 50,000 AND
    • In aggregate (all documents combined) exceed Rs 50,000. *A

Frequently Asked Questions

What is the threshold for GST registration in India?
The threshold limit for GST registration varies based on the type of goods or services supplied and the state. Generally, businesses with an annual turnover exceeding Rs. 40 lakhs (for goods) or Rs. 20 lakhs (for services) must register for GST. Special category states have lower thresholds, typically Rs. 20 lakhs for goods and Rs. 10 lakhs for services.
What is Input Tax Credit (ITC) under GST?
Input Tax Credit (ITC) allows businesses to reduce their tax liability by claiming credit for the GST paid on purchases of goods or services used for business purposes. This mechanism prevents the cascading effect of taxes, where tax is paid on tax.
What is the difference between CGST, SGST, IGST, and UTGST?
CGST (Central GST) and SGST (State GST) are levied on intra-state supplies, with revenues going to the Central and State governments, respectively. IGST (Integrated GST) is levied on inter-state supplies and imports, collected by the Central government and then apportioned to states. UTGST (Union Territory GST) is the equivalent of SGST for Union Territories without a legislature.
When is GST Reverse Charge Mechanism (RCM) applicable?
The Reverse Charge Mechanism (RCM) in GST shifts the responsibility of paying tax from the supplier to the recipient of goods or services. It is typically applicable in cases involving supplies from unregistered persons to registered persons, certain specified services (e.g., legal services), or specific goods notified by the government.
What is the HSN Code in GST?
The Harmonized System of Nomenclature (HSN) code is an internationally standardized system for classifying traded products. Under GST, businesses use HSN codes to classify goods and services for taxation purposes, facilitating uniform classification and simplifying the tax process.