GST E-Way Bill — Generation, Validity, Extension & Penalties Under Rule 138

GST E-Way Bill — Rules and Compliance

The e-way bill is an electronic document generated on the Government's e-way bill portal at ewaybill.nic.in for the movement of goods worth more than Rs. 50,000 (consignment value) within India. Every movement of goods above this threshold — whether by road, rail, air, or waterway; whether for sale, stock transfer, return, or any other reason — must be accompanied by a valid e-way bill. It replaces the physical waybills and delivery challans used under the VAT system and gives the GST department real-time tracking of goods movement across the country. The system is governed by Rule 138 of the CGST Rules, 2017 and by individual State GST rules for intra-state e-way bills. An e-way bill consists of two parts — Part A (invoice and goods details) and Part B (transporter vehicle details); without both parts, the goods are not permitted to be transported.

N D Savla & Associates, Chartered Accountants in Mumbai, assists businesses with e-way bill compliance: understanding when an e-way bill is required, training on generation, managing validity extension before expiry, handling rejections by the recipient, and advising on exemptions and exceptions. For businesses whose goods have been detained or seized for e-way bill violations, we provide GST advisory and representation. E-invoices can auto-populate Part A of the e-way bill — see our GST E-Invoicing Software guide.

When Is an E-Way Bill Required?

• Consignment value exceeds Rs. 50,000: required for movement of goods of consignment value exceeding Rs. 50,000, including the applicable GST
• Interstate movement: mandatory regardless of the mode of transport for interstate movement above Rs. 50,000
• Intra-state movement: follows individual State GST rules — most states require e-way bills above Rs. 50,000 (some have higher thresholds for specific goods)
• All types of supply: applies whether the movement is for a sale, stock transfer between branches, return of goods, supply on approval basis, or any other reason
• All modes of transport: road, rail, air, and waterway movements all require an e-way bill when thresholds are met

Who Can Generate an E-Way Bill?

• The supplier: if registered, it is the supplier's primary responsibility to generate the e-way bill before dispatch, using their GSTIN login
• The recipient: if the supplier is unregistered or fails to generate it, the recipient (if registered) is responsible
• The transporter: if neither supplier nor recipient generates it, the transporter is responsible, based on the invoice/delivery challan
• Third-party generation: suppliers can authorise a GST accountant, logistics company, or transporter to generate e-way bills on their behalf via the portal's sub-user or API access features

E-Way Bill Parts — Part A and Part B

Part A — Invoice and Goods Details

• GSTIN of the supplier and recipient (or URP for unregistered parties)
• Place of delivery (PIN code and state)
• Invoice / document number and date
• Value of the goods (taxable value + GST)
• HSN code of the principal goods (minimum 2-digit for turnover up to Rs. 5 crore; 4-digit for Rs. 5–50 crore; 8-digit above Rs. 50 crore)
• Reason for transportation (supply, export/import, job work, etc.)
• Transport document number (if goods are already in transit)

Part B — Transporter Details

• Vehicle number for road transport (or transport document number, train number, flight number for rail, air, or waterway)
• Transporter ID (if a registered transporter is carrying the goods)
• Can be updated at the time of commencement of transportation or anytime before validity expires
• Without a valid Part B, the e-way bill is incomplete — goods found in transit without it are liable to detention

E-Way Bill Validity — Distance-Based Period

E-Way Bill Extension Before Expiry

If the e-way bill is about to expire and the goods have not yet reached the destination (due to breakdown, accident, natural calamity, or other unforeseen delay), it can be extended before expiry — only by the transporter or the person who generated it.

1. Log in to the portal at ewaybill.nic.in and navigate to "Extend Validity" under the e-way bill menu
2. Enter details — the e-way bill number and reason for extension (breakdown, accident, transshipment, natural calamity, law and order issue, etc.)
3. Provide the new vehicle number (if changed) and the remaining distance to destination
4. System extends validity automatically based on the remaining distance

Extension can only be done within 8 hours before or after the e-way bill expiry — extensions cannot be done after it has already expired.

E-Way Bill Exemptions — When No E-Way Bill Is Required

• Goods transported by non-motorised conveyance (hand cart, cycle, animal cart)
• Goods transported from the port, airport, air cargo complex, or land customs station to an ICD or CFS for clearance by customs
• Movement of goods under customs supervision or under customs seal
• Empty cargo containers moved under customs control
• Goods transported up to 10 km within the same state for weighment at a weigh bridge, accompanied by a delivery challan
• Goods listed in Annexure to Rule 138(14): certain agricultural produce, household goods, currency, alcohol for human consumption in certain states, petroleum products in certain states, etc.

Penalty for E-Way Bill Violations

• Goods moved without an e-way bill or with an expired one: the proper officer may detain and seize the goods and conveyance (Section 129). Penalty: 200% of the tax amount (IGST or CGST+SGST); for exempt goods, 2% of the value
• Minor discrepancies (vehicle number error, minor value discrepancy) may attract a reduced penalty of Rs. 1,000 per e-way bill under CBIC circulars
• If tax and penalty are not paid, detained goods may be auctioned by the department under Section 129(6)

Frequently Asked Questions — GST E-Way Bill