E-Way Bill Rules: Threshold & Pitfalls

TL;DR

An e-way bill is mandatory for movement of goods worth over ₹50,000 (₹50,000 inclusive of GST).

An e-way bill is an electronic document required for the movement of goods under Section 68 of the CGST Act read with Rule 138 of the CGST Rules. The bill is generated on the E-Way Bill portal by the consignor (the supplier) or the recipient (if the supplier has not generated it), or by the transporter. The threshold for e-way bill applicability is ₹50,000 inclusive of GST. Below the threshold, an e-way bill is not mandatory, but can be generated voluntarily. Above the threshold, an e-way bill is mandatory — and a non-compliant consignment can be detained by the GST officer with penalty under Section 122.

When an E-Way Bill Is Required

Scenario	E-Way Bill Required?
Movement of goods, invoice value > ₹50,000 (incl. GST)	Yes
Movement of goods, invoice value ≤ ₹50,000 (incl. GST)	No (voluntary allowed)
Exempted goods	No
Goods transported by a non-motorised conveyance (hand-cart, animal cart)	No
Goods transported within the same premises (no road movement)	No
Goods transported from the customs port to the bonded warehouse	Yes (under the customs e-way bill, not the GST portal)
Goods transported by air or vessel	Yes — Part-A on the portal; Part-B by the transporter before delivery
Job-work movement of inputs / capital goods	Yes, with the specific reasons flagged in Part A

For a non-motorised conveyance, the e-way bill exemption applies. For a movement up to a distance of 20 km from the place of business to a weighbridge or to the transporter’s premises, the e-way bill can be generated without Part-B (vehicle number) and Part-B can be updated later.

The Two Parts of an E-Way Bill

Part A

• GSTIN of the supplier and recipient.
• Place of delivery (with pincode).
• Invoice or challan number and date.
• HSN code of the goods (4-digit for turnover ≤ ₹5 crore, 6-digit for > ₹5 crore).
• Value of goods.
• Reason for transport (Supply, Export, Job-work, Sales Return, Exhibition, others).

Part B

• Transporter ID (GSTIN of the transporter) OR
• Vehicle number in which the goods are transported.

Part A is generated first. Part B is added before the goods start moving. For a consignment transported by road, Part B must contain the vehicle number. For a consignment transported by air / rail / vessel, Part B contains the transporter ID + transport document number + date.

Validity Period

The e-way bill is valid for a fixed period based on the distance. The standard validity is:

Distance	Validity (for normal goods)	Validity (for ODC — Over Dimensional Cargo)
Up to 200 km	1 day	1 day
200 km to under 400 km	3 days	3 days
400 km and above	1 day for every 20 km or part thereof	1 day for every 20 km or part thereof

The validity is calculated from the date and time of generation of Part B (i.e., when the vehicle number is entered). If the goods reach the destination before expiry, no extension is needed. If the consignment is delayed and validity expires, the e-way bill must be extended before expiry — the portal allows an extension up to the remaining distance × 1 day per 20 km or part thereof, plus a cushion — but the extension cannot be granted after expiry.

Common Pitfalls

Pitfall 1 — HSN code mismatch with GSTR-1

The HSN code on the e-way bill must match the HSN code on the invoice and the HSN code declared in GSTR-1. A mismatch is an auto-flag in the department’s reconciliation. The fix: regenerate the e-way bill with the correct HSN, or amend the GSTR-1 within the amendment window.

Pitfall 2 — Part-B not updated

Part A was generated, but the transporter changed the vehicle mid-way and Part B was not updated. The original vehicle number is on the e-way bill, the actual vehicle in transit is different. If the consignment is intercepted, the GST officer will treat the consignment as unaccompanied.

Pitfall 3 — E-way bill expired before delivery

The goods were held at the transporter’s godown for two days (rain delay, strike, weekend). The e-way bill expired. The goods are now in transit without a valid e-way bill. The fix: extend the e-way bill before expiry. If expiry has passed, regenerate the e-way bill with a new Part B — but the department may treat this as a fresh consignment and raise a separate demand.

Pitfall 4 — Trans-shipment not handled

Goods were unloaded at a hub, trans-shipped to a different vehicle. The e-way bill must be updated with the new vehicle number. If not, the goods are in transit without a valid document.

Pitfall 5 — Goods detained — Section 68 vs Section 122

A GST officer can detain goods under Section 68 if the e-way bill is not produced. The penalty for non-production is ₹10,000 or the tax amount, whichever is higher, under Section 122. If the e-way bill is produced during the detention, the goods are released. If the officer’s authority is contested, the matter goes under Section 129 (detention order) and Section 130 (release on bond or payment).

Pitfall 6 — Multi-vehicle consignment

A single invoice is being transported in multiple vehicles (one for part of the consignment, another for the balance). Each vehicle requires its own e-way bill. A common error is generating one e-way bill and splitting the consignment across vehicles.

The Validity Extension Process

Before expiry, the e-way bill can be extended by the consigner or the transporter. The process:

1. Login to the E-Way Bill portal.
2. Go to Extend EWB under the main menu.
3. Enter the e-way bill number.
4. Enter the new validity period (the system calculates the allowed extension based on the remaining distance).
5. Submit.

The extension is granted immediately. The e-way bill is re-issued with the new validity period. The history of extensions is preserved on the portal.

Cancellation of an E-Way Bill

If the goods are not actually transported (the order is cancelled, the consignment is held), the e-way bill can be cancelled within 24 hours of generation. After 24 hours, cancellation is not allowed — the e-way bill can only be extended.

Cancellation is allowed when:

• The goods are not actually transported.
• The e-way bill was generated with the wrong details.
• The consignment is short-shipped (partially cancelled).

Penalty and Detention

If a consignment is intercepted without a valid e-way bill, the GST officer can:

• Detain the goods under Section 129.
• Demand payment of tax + penalty under Section 122 (₹10,000 or tax amount, whichever is higher).
• Release the goods on payment of the tax + penalty, or on a bond executed by the consigner / transporter.

The release order is under Section 130. The order can be appealed to the Commissioner (Appeals) within 3 months.

The Single Most Important Workflow

For any business moving goods worth more than ₹50,000:

1. Generate the e-way bill before the goods leave the premises.
2. Ensure Part B (vehicle number) is updated before the goods start moving.
3. Carry a copy of the e-way bill (printed or on the driver mobile via the EWB app).
4. Extend the e-way bill before expiry if the consignment is delayed.
5. Cancel the e-way bill within 24 hours if the goods are not transported.

For businesses with high consignment volume, integrate the e-way bill generation with the invoicing software. Tally Prime, Zoho Books, and Busy Accounting all have native integrations. The integration generates the e-way bill automatically when the invoice is saved.

Common E-Way Bill Scenarios

Scenario 1 — Sale with delivery

Supplier raises a tax invoice for ₹1 lakh. Generates e-way bill Part A (invoice details). Transporter updates Part B with the vehicle number. Consignment moves. E-way bill valid for 24 hours per 200 km.

Scenario 2 — Job-work movement

Manufacturer sends ₹80,000 of raw materials to a job-worker. The invoice is a delivery challan. The e-way bill is generated with the reason “Job-work” in Part A. The validity applies as normal.

Scenario 3 — Sale return

Buyer returns ₹60,000 of goods to the supplier. The e-way bill is generated by the buyer (consignor of the return) with reason “Sales Return”. Part A and Part B are filled. The consignment moves back.

Scenario 4 — Exempt goods

Trader moves ₹1 lakh of exempted goods (e.g., fresh vegetables). No e-way bill is required.

Scenario 5 — Mixed consignments

A transporter carries goods for multiple consignors. Each consignor generates a separate e-way bill. The transporter’s master record tracks all the bills. If the consignment is intercepted, each e-way bill is verified separately.

When to Get Help

If your business has consignment volume above 100 a month, the manual e-way bill process is impractical — you need automation. We routinely set up Tally, Zoho Books, and Busy integrations for clients. Our GST return filing and bookkeeping services cover the invoicing-to-e-way-bill link. Share your current invoicing software and your monthly consignment volume on WhatsApp for a free integration assessment.

For the HSN code enforcement that drives most e-way bill mismatches, see our HSN codes enforcement guide. For the broader GST registration context, see our GST registration guide.

Sources

• E-Way Bill Portal
• CBIC — CGST Act Section 68, 122, 129, 130; CGST Rules Rule 138, 138A, 138B, 138E