E-way bill
What E-way bill means, where you will meet it and what it means for your business.
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.