E-way bill
What E-way bill means, how it works, a worked example, the mistakes we see and the questions founders ask.
DefinitionAn e-way bill is the electronic document generated on the GST portal before goods worth more than ₹50,000 are moved, carrying the invoice details, vehicle number and the route's validity period.
The e-way bill tracks movement of goods and stops tax evasion in transit. Before a consignment of value above ₹50,000 leaves, the supplier, buyer or transporter generates Form EWB-01 on the e-way bill portal, quoting the invoice, HSN codes, GSTINs of both parties and the vehicle. It is valid for one day per 200 kilometres and can be extended if the vehicle breaks down. Some states apply the threshold to intra-state movement differently, so check your state's rule. You meet it when shipping stock, sending goods for job work or returning rejected material. What it means for you: goods checked in transit without a valid e-way bill can be detained and released only on payment of the tax plus a penalty equal to the tax, so logistics staff need portal access and a checklist.
How E-way bill works
An e-way bill is generated on the e-way bill portal before goods worth more than ₹50,000 in a single consignment move by road, rail, air or ship, whether for sale, job work, transfer between branches or return. Part A carries the invoice, HSN and value; Part B the vehicle number or transport document. The sender, the recipient or the transporter can generate it, and for an e-invoiced supply Part A is created automatically from the IRP.
Validity depends on distance: one day for every 200 kilometres or part of it for ordinary cargo, and one day per 20 kilometres for over-dimensional cargo. It can be extended within eight hours before or after expiry if the goods are delayed, and cancelled within 24 hours if the movement does not take place. Several States require it for intra-State movements above lower limits, and a few exempt them up to ₹1 lakh.
The bill travels with the goods, on paper or on a phone; an officer scanning the QR code sees the consignment and the tax. Goods moving without a valid bill can be detained and released only on payment of the tax and a penalty equal to the tax, or 200% in the worst case, which is why transport teams treat it as part of dispatch.
A Coimbatore pump manufacturer ships ₹3 lakh of pumps to a Nagpur dealer, about 1,000 kilometres. Its system generates the e-way bill from the e-invoice, adding the truck number in Part B. The bill is valid for five days. The truck breaks down on day four; the transporter extends the bill from the portal that evening, and the goods clear a check post in Maharashtra the next day without incident.
Mistakes we see with E-way bill
- Generating the bill after the goods have left, which is the most common ground for detention at check posts.
- Leaving Part B blank with the vehicle number, which makes the bill invalid for movement by road.
- Letting the bill expire on a long route and not extending it, so the goods are stopped a day from delivery.
Last updated 19 October 2026. Checked against the MCA, GST, Income-tax and Trade Marks rules in force for October 2026.
Where you will meet this term
Questions founders ask about E-way bill
When is an e-way bill required?
For any movement of goods worth more than ₹50,000 in a consignment, interstate or intra-State (some States set a higher intra-State limit), by any mode, for any reason, including job work and branch transfers. Some goods and short movements are exempt.
How long is an e-way bill valid?
One day for every 200 kilometres or part of it (one per 20 kilometres for over-dimensional cargo), counting from the time Part B is filled in. It can be extended within eight hours of expiry if the goods are delayed in transit.
What is the penalty for moving goods without an e-way bill?
Detention of the goods and vehicle, released on payment of a penalty equal to 200% of the tax on the goods (or a lower amount if the owner comes forward and the goods are not taxable). Minor clerical errors attract a ₹1,000 penalty only.