E-Way Bill Guide — Rules, Limits & How to Generate
By Parul Singh, GST Practitioner · GST Compliance · Updated June 2026
Table of Contents
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What is an E-Way Bill?
Every week, 5+ transporters call me from state borders because of e-way bill issues. Missing or expired e-way bill means ₹10,000 penalty minimum. An e-way bill is an electronic permit for movement of goods worth more than ₹50,000 from one place to another.
Official Reference: Rule 138 of the CGST Rules 2017 mandates e-way bill for movement of goods. The threshold is ₹50,000 for inter-state movement (₹1,00,000 for intra-state in Delhi, varies by state). National e-way bill system went live on 1st April 2018.
When is an E-Way Bill Required?
- Movement of goods worth more than ₹50,000 (consignment value including tax)
- Inter-state movement: above ₹50,000
- Intra-state movement: varies by state (Delhi: ₹1,00,000)
- Mandatory regardless of value: Inter-state transport of handicraft goods, transport for job work, movement from business to SEZ
📍 Real Example -- Goods Transported from Okhla to Jaipur
A manufacturer in Okhla ships ₹3,00,000 worth of auto parts to Jaipur by truck. E-way bill must be generated before dispatch:
• Part A: GSTIN of supplier & recipient, HSN, value, tax
• Part B: Vehicle number, transporter ID
• Validity: 300 km ÷ 100 km/day = 3 days + 1 day = 4 days
• If not generated: ₹10,000 penalty + goods detained at border
• Part A: GSTIN of supplier & recipient, HSN, value, tax
• Part B: Vehicle number, transporter ID
• Validity: 300 km ÷ 100 km/day = 3 days + 1 day = 4 days
• If not generated: ₹10,000 penalty + goods detained at border
How to Generate E-Way Bill
- Login to ewaybillgst.gov.in
- Click "Generate New EWB"
- Fill Part A: Supply type, supplier/recipient GSTIN, HSN code, value, tax
- Fill Part B: Transporter ID or vehicle number
- Click "Generate" -- 12-digit EBN (E-way Bill Number) is created
- Print or share EBN with transporter
💡 Pro Tip from Parul: If you do not know the vehicle number at the time of generating Part A, generate Part A first with the transporter ID. The transporter can update Part B later. This is very common -- 70% of my clients generate Part A first and Part B when the truck arrives.
Validity & Extension
| Distance | Validity |
|---|---|
| Up to 100 km | 1 day |
| 100-300 km | 3 days |
| 300-500 km | 5 days |
| 500-1000 km | 7 days |
| Above 1000 km | 10 days |
⚠️ Common Mistake: If your e-way bill expires while goods are in transit, you MUST extend it BEFORE expiry. Extension can be done 8 hours before expiry. Once expired, the goods can be detained and penalty imposed. I have had clients lose ₹50,000+ because they forgot to extend.
Penalties for Non-Compliance
- No e-way bill: ₹10,000 or tax amount, whichever is higher
- Expired e-way bill: ₹10,000 penalty + goods detained
- Wrong details: ₹25,000 for deliberate misdeclaration
- Detention: Goods released only after payment of tax + penalty + security
📍 Real Example -- Border Detention -- Delhi-Haryana Border
A transporter carrying ₹5 lakh of textiles from Gandhi Nagar to Gurgaon was stopped at the Delhi-Haryana border. The e-way bill had expired 6 hours ago because of traffic delays. Result: goods detained, ₹10,000 penalty, and had to wait 2 days for release. If they had extended the e-way bill 8 hours before expiry, none of this would have happened.
💡 Pro Tip from Parul: I provide e-way bill compliance support including generation, extension, and management for ₹999/month. Never get detained at a border again. Call/WhatsApp: +91 95401 04776
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Frequently Asked Questions
Is e-way bill required for services?
No. E-way bill is required only for movement of goods, not services. However, if goods are supplied along with services (like installation with equipment), the goods component requires an e-way bill if above the threshold.
Who generates the e-way bill -- supplier or transporter?
The supplier generates it if they transport goods themselves. If a transporter is hired, either the supplier or the transporter can generate it. The responsibility lies with the person causing the movement of goods.
Can e-way bill be cancelled?
Yes, within 24 hours of generation, if goods are not transported or wrong details were entered. After 24 hours, cancellation is not possible. Cancel through the portal using the EBN number.
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