E-Way Bill Rules What Every Indian Business Must Know
Carrying a valid E-Way Bill is mandatory for transporting goods worth over ₹50,000 in India. Whether you are a manufacturer, trader, transporter, or e-commerce seller, non-compliance can invite hefty penalties and even vehicle detention. Here’s a clear, updated guide to help you comply smoothly.
What Is an E-Way Bill?
The E-Way Bill is an electronic document generated on the GST portal, required for transporting goods. It ensures tax compliance and transparency in goods movement.
- Applicable under Rule 138 of CGST Rules, 2017
- Generated online via the E-Way Bill portal (ewaybillgst.gov.in)
- Mandatory for inter-state and intra-state transport of taxable goods
When Is the E-Way Bill Mandatory?
You must generate an E-Way Bill when:
| Condition | E-Way Bill Required? |
|---|---|
| Goods value exceeds ₹50,000 | ✅ Yes |
| Inter-state job work (any value) | ✅ Yes |
| Transport by e-commerce operator | ✅ Yes |
| Hand delivery by unregistered person | ✅ No (if value < ₹50,000) |
| Transport within 10 km (within state) | ❌ No (for documents only) |
👉 Source: CBIC E-Way Bill FAQs
How to Generate an E-Way Bill?
Step-by-step guide for taxpayers:
- Login to the E-Way Bill portal
- Click ‘Generate New’
- Fill Part A: GSTIN of supplier/recipient, HSN, invoice details
- Fill Part B: Transport details – mode, vehicle number, etc.
- Click ‘Submit’ to generate EWB with a 12-digit number
📌 Pro Tip:
Ensure your GSTIN is active, and the vehicle number is correct—wrong info leads to penalties.
Validity of the E-Way Bill
The validity depends on the distance to be covered:
| Distance | Validity Period |
|---|---|
| Upto 100 km | 1 day |
| Every additional 100 km | +1 day |
- For over-dimensional cargo, the validity is longer
- You can extend the E-Way Bill before expiry via the portal
Penalties for Non-Compliance
Transporting goods without a valid E-Way Bill can result in:
- ₹10,000 fine or tax sought to be evaded – whichever is higher
- Detention/seizure of goods and vehicle
- Legal proceedings under Section 129 of CGST Act
📖 Legal Reference:
Who Can Generate an E-Way Bill?
- Registered person (Supplier/Recipient/Transporter)
- Unregistered person, if supplying to a registered buyer
- Transporter, if not generated by the supplier
Expert Tip:
If you’re a regular supplier with fixed routes, use EWB bulk generation tools or integrate your ERP with the e-way bill system via API. This reduces manual errors and saves time.
Common FAQs on E-Way Bill
Q1. Do I need a separate E-Way Bill for return goods?
Yes, generate a fresh EWB even for return transport, using a credit note or delivery challan.
Q2. Is E-Way Bill required for exempt goods?
No, unless it’s an inter-state job work or notified items.
Q3. What if vehicle breaks down during transit?
Update the vehicle details in Part B before resuming movement.
Conclusion
Understanding E-Way Bill rules is essential to avoid GST penalties and ensure seamless goods transport. Whether you’re a small business or a growing e-commerce brand, timely generation and proper documentation can protect your business from legal troubles.
Need help with E-Way Bill setup or GST compliance?
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Summary
The E-Way Bill is a mandatory document for transporting goods over ₹50,000 under GST. Learn who needs it, when it’s valid, how to generate it, and what penalties apply for non-compliance. Simplify your logistics with Efiletax’s trusted support for Indian businesses.