E-Way Bill System in India: Rules, Applicability, and Generation Process
The E-Way Bill system is crucial for regulating goods movement under India's Goods and Services Tax framework. This electronic document ensures transparency and compliance for consignments exceeding a specified value. This guide outlines the definition, components, and generation procedures for E-Way Bills, detailing when they are required and exceptions. It also covers important updates, validity rules, and essential documents needed for generation.
Navigating India's E-Way Bill System: Comprehensive Guide
Effectively managing the movement of goods while adhering to regulatory requirements can be challenging for businesses. Financial leaders often encounter obstacles such as administrative delays and confusion regarding transportation guidelines. The E-Way Bill system, implemented under India's Goods and Services Tax (GST) framework, streamlines the transit of goods, ensuring that every consignment is properly documented for transparency and ease of process. This guide will clarify what an E-Way Bill is and how it functions.
An Electronic Way Bill, known as an E-Way Bill, is mandatory for goods movement under GST across India when the consignment's value surpasses a specific limit. Transporters must possess an E-Way Bill when relocating goods.
Recent 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 the GSTN's advisory dated June 16, 2025, aims to reduce reliance on a single portal and ensure real-time data synchronization. The new E-Way Bill2 portal is designed to synchronize E-Way Bill details with the main portal within seconds.
Understanding the E-Way Bill
Under the Goods and Services Tax (GST) regime, an Electronic Way Bill is mandatory for transporting goods. No registered individual may move goods in a vehicle exceeding a value of Rs. 50,000 (per single invoice, bill, or delivery challan) without an E-Way Bill generated via the official ewaybillgst.gov.in portal.
Alternatively, E-Way Bills can be generated or cancelled using SMS, an Android application, or through site-to-site API integration by accurately entering the GSTIN of all parties involved. A unique E-Way Bill Number (EBN) is assigned upon generation, accessible to the supplier, recipient, and transporter.
Key Components of an E-Way Bill
An E-Way Bill comprises two main sections: Part A and Part B. The individual responsible for issuing the E-Way Bill must complete Part A with the following details:
- Recipient's GSTIN
- Delivery location (PIN Code)
- Invoice or challan number and its date
- Value of the goods
- HSN code
- Transport document number (such as Goods Receipt Number, Railway Receipt Number, Airway Bill Number, or Bill of Lading Number)
- Reason for transportation
Part B, on the other hand, contains the transporter's information, including the vehicle number.
When an E-Way Bill is Mandatory
An E-Way Bill must be generated for the movement of goods in a vehicle or conveyance when the value exceeds Rs. 50,000 (whether for a single invoice or the aggregate of all invoices in a vehicle) under these conditions:
- In connection with a 'supply'.
- For reasons other than a 'supply' (e.g., goods return).
- Due to an inward 'supply' from an unregistered person.
For this purpose, a 'supply' typically includes:
- Sale: Goods sold with payment.
- Transfer: Such as inter-branch transfers.
- Barter/Exchange: Payment made with goods instead of money.
Consequently, E-Way Bills are required on the common portal for all these types of movements. For specific goods, an E-Way Bill is mandatory even if the consignment value is below Rs. 50,000:
- Inter-State movement of goods by a Principal to a Job-worker, initiated by either the Principal or a registered Job-worker.
- Inter-State transport of handicraft goods by a dealer exempt from GST registration.
Responsibility for E-Way Bill Generation
- Registered Person: An E-Way Bill must be generated for goods valued over Rs. 50,000 being moved to or from a registered person. A registered person or their transporter may choose to generate an E-Way Bill even if the goods' value is less than Rs. 50,000.
- Unregistered Persons: Unregistered persons also need to generate E-Way Bills. However, if an unregistered person supplies goods to a registered person, the recipient is responsible for fulfilling all compliance obligations as if they were the supplier.
- Transporter: Transporters moving goods by road, air, rail, etc., must generate an E-Way Bill if the supplier has not already done so. They are not required to generate the E-Way Bill (Form EWB-01 or EWB-02) if all consignments in the conveyance:
- Individually (per single document) are less than or equal to Rs. 50,000 AND
- In aggregate (all documents combined) do not exceed Rs. 50,000.
- Note: An unregistered transporter will receive a Transporter ID upon enrollment on the E-Way Bill portal, enabling them to generate E-Way Bills.
Here is a summary of generation responsibilities:
| Who | When | Part | Form |
|---|---|---|---|
| Every Registered Person under GST | Before movement of goods | Fill Part A | Form GST EWB-01 |
| Registered person is consignor or consignee (mode of transport may be owned or hired) OR is recipient of goods | Before movement of goods | Fill Part B | Form GST EWB-01 |
| Registered person is consignor or consignee, and goods are handed over to transporter | Before movement of goods | Fill Part B | The registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01. |
| Transporter of goods | Before movement of goods | -- | Generate E-Way Bill based on information shared by the registered person in Part A of FORM GST EWB-01. |
| Unregistered person under GST, and recipient is registered | Compliance to be done by Recipient as if they are the Supplier. | -- | 1. If goods are transported for a distance of 50 kilometers or less within the same State/Union territory from the consignor's business place to the transporter's business place for further transportation, the supplier or transporter may omit conveyance details in Part B of FORM GST EWB-01. 2. If supply is by air, ship, or railways, Part A of FORM GST EWB-01 must be completed by the consignor or recipient. |
If a transporter carries multiple consignments in one conveyance, they can use Form GST EWB-02 to produce a consolidated E-Way Bill by providing the E-Way Bill numbers for each consignment. Should both the consignor and consignee fail to create an E-Way Bill, the transporter can do so by completing Part A of Form GST EWB-01 based on the invoice, bill of supply, or delivery challan provided.
Exemptions from E-Way Bill Generation
E-Way Bills are not required in the following circumstances:
- When the mode of transport is a non-motorized vehicle.
- For goods moved from a Customs port, airport, air cargo complex, or land customs station to an Inland Container Depot (ICD) or Container Freight Station (CFS) for Customs clearance.
- For goods transported under Customs supervision or seal.
- For goods transported under Customs Bond from an ICD to a Customs port or from one customs station to another.
- For transit cargo transported to or from Nepal or Bhutan.
- When goods movement is initiated by defense formations under the Ministry of Defence, either as a consignor or consignee.
- For the transportation of empty cargo containers.
- When a consignor transports goods to or from a business location and a weighbridge for weighment, over a distance of 20 km, accompanied by a Delivery Challan.
- For goods transported by rail where the consignor is the Central Government, State Government, or a local authority.
- For goods specifically exempted from E-Way Bill requirements in the respective State/Union territory GST Rules.
- For the transport of certain specified goods, which includes items listed as exempt supplies, those in Annexure to Rule 138(14), goods treated as no supply per Schedule III, and certain Central tax Rate notifications. (PDF of List of Goods).
Note: Part B of the E-Way Bill is not necessary if the distance between the consignor or consignee and the transporter is less than 50 km, and the transport occurs within the same state.
State-Specific E-Way Bill Regulations and Thresholds
Inter-State goods movement has shown a significant increase in E-Way Bill generation since its introduction on April 1, 2018. State-specific E-Way Bill rules have varied and undergone changes over time. Many States and Union Territories have also adopted E-Way Bill generation for intra-state goods movement.
However, certain States have granted relief by exempting E-Way Bill generation for monetary limits below a specified threshold or for particular items. For example, Tamil Nadu exempts its residents from E-Way Bill generation if the monetary value of items is below Rs. 1 Lakh. To discover more about such exemptions in other States/UTs, refer to our guide on state-wise E-Way Bill rules and threshold limits or check the official commercial tax websites for each State/UT.
Online E-Way Bill Generation via Portal
E-Way Bills and their corresponding E-Way Bill numbers can be generated on E-Way Bill Portal 1 or E-Way Bill Portal 2 (available from July 1, 2025). A portal login is all that is required. For a comprehensive step-by-step guide on generating E-Way Bills, consult our article on the online E-Way Bill generation guide.
The GST Network issued an advisory on December 17, 2024, expanding the requirement for Two-Factor Authentication (2FA) on NIC for taxpayers. Businesses with an Aggregate Annual Turnover (AATO) exceeding Rs. 20 crores must mandatorily use 2FA from January 1, 2025. Similarly, 2FA will be compulsory for businesses with a turnover between Rs. 5 crore and Rs. 20 crore from February 1, 2025. All taxpayers, regardless of turnover, must use 2FA for E-Invoice and E-Way Bill generation starting April 1, 2025.
Generating E-Way Bills via SMS on Mobile
E-Way Bills can be generated via SMS using a registered mobile phone. Users must first activate the SMS E-Way Bill generation facility by registering their mobile phone for this service. Afterward, simple SMS codes can be sent to a dedicated mobile number managed by the E-Way Bill portal/GSTN to generate, manage, and cancel E-Way Bills. For further details, refer to our article on SMS mode E-Way Bill generation.
Time Limits for E-Way Bill Generation
Previously, there was no specific time limit for generating E-Way Bills, though each bill had a validity period, as detailed in the next section. However, starting January 1, 2025, E-Way Bills can only be generated for documents dated within 180 days. For instance, documents dated earlier than July 5, 2024, will be ineligible for E-Way Bill generation from January 1, 2025. This update aligns with a GSTN advisory dated December 17, 2024.
E-Way Bill Validity
The validity period of an E-Way Bill depends on the distance the goods are transported, calculated from the date and time of its generation:
| Type of conveyance | Distance | Validity of EWB |
|---|---|---|
| Other than Over-dimensional cargo | Less Than 200 Kms | 1 Day |
| For every additional 200 Kms or part thereof | additional 1 Day | |
| For Over-dimensional cargo | Less Than 20 Kms | 1 Day |
| For every additional 20 Kms or part thereof | additional 1 Day |
The validity of an E-Way Bill can also be extended by its generator either eight hours before its expiry or within eight hours after its expiry. E-Way Bill validity extensions are capped at 360 days from the original generation date, effective January 1, 2025.
Required Documents and Details for E-Way Bill Generation
To generate an E-Way Bill, the following documents and details are necessary:
- Invoice, Bill of Supply, or Challan pertinent to the goods consignment.
- For road transport: Transporter ID or vehicle number.
- For transport by rail, air, or ship: Transporter ID, transport document number, and the date on the document.
Note: During transit, a vehicle may be stopped by a proper officer for the verification of documents, including the E-Way Bill, or for inspection of goods.