E-Way Bill
An electronic document required for movement of goods worth more than ₹50,000 within or across states.
E-Way Bill (Electronic Way Bill) is a digitally generated document required for movement of goods worth more than ₹50,000 within or across Indian states. Introduced under GST regime in April 2018, it replaces the complex multi-state waybill system, enabling seamless goods movement tracking for tax authorities while reducing paperwork for businesses.
When E-Way Bill is Mandatory
- Inter-state movement: Goods value >₹50,000 (including GST)
- Intra-state movement: Depends on state—most states mandate for >₹50,000 within state also
- All transport modes: Road, Rail, Air, Ship
- Applies to: Sales, purchases, returns, job work, transfers, exhibitions
Who Must Generate E-Way Bill?
- Registered supplier: Moving goods for business purposes
- Unregistered person: Moving goods >₹50,000 (can request transporter to generate)
- Transporter: If consignor/consignee doesn't generate
Information Required
Part A (Supplier/consignee generates before dispatch):
- GSTIN of supplier and recipient
- Delivery location PIN codes
- Invoice/Challan number and date
- HSN code of goods (minimum 4 digits)
- Value of goods and tax amount
- Reason for transport (Supply, Export, Job Work, etc.)
Part B (Transporter adds before dispatch):
- Vehicle number
- Transporter ID/document number
E-Way Bill Validity Period
| Distance | Validity |
|---|---|
| Upto 200 km | 1 day |
| Every additional 200 km | +1 additional day |
| Over-dimensional cargo | 1 day per 20 km |
Example: Distance Mumbai to Delhi = 1400 km
Validity = 1 day (first 200km) + 6 days (remaining 1200km / 200) = 7 days
Common Manufacturing Scenarios
Scenario 1: Sending goods for Job Work
Factory sends raw materials to external vendor for powder coating (value ₹1.2 lakhs). E-Way Bill mandatory even though no sale—select "Job Work" as reason. When coated materials return, generate new E-Way Bill for return journey.
Scenario 2: Branch Transfer
Factory in Pune transfers finished goods to own branch in Nagpur for local sales (₹3 lakhs value). Generate E-Way Bill selecting "Others" reason and mention "Branch Transfer" in remarks.
Scenario 3: Multiple Invoices, One Consignment
Single truck carrying 5 different customer orders (5 invoices totaling ₹8 lakhs). Generate consolidated E-Way Bill with all 5 invoices listed, or generate 5 separate E-Way Bills (one per invoice).
Vehicle Number Changes (Part-B Update)
If goods get transferred to different vehicle mid-transit (transshipment at warehouse, vehicle breakdown, etc.), update Part-B with new vehicle number. No need to cancel and regenerate entire E-Way Bill. Can update vehicle details as many times as needed before expiry.
Penalties for Non-Compliance
- No E-Way Bill: Tax authorities can detain vehicle, seize goods, levy penalty of ₹10,000 OR tax amount (whichever is higher)
- Wrong information: If material description or value incorrect, treated as tax evasion—penalties applicable
- Expired E-Way Bill: Generate fresh E-Way Bill or extend validity before expiry
Exemptions (No E-Way Bill Required)
- Goods value ≤ ₹50,000 per consignment
- Non-GST goods (alcohol for human consumption, petroleum products until notified)
- Specific situations: transportation by rail/vessel/air up to inland container depot (ICD), goods under customs bond, empty cargo containers
Practical Tips for Manufacturers
- Generate in advance: Create E-Way Bill before vehicle loading. Driver must carry printed copy or SMS with E-Way Bill number
- Keep buffer: Generate 2-3 hours before dispatch. Technical issues with portal can delay generation
- Monitor expiry: For long-distance shipments, track validity. Extend if needed before expiry (upto 8 hours before or 8 hours after expiry with valid reason)
- Maintain records: Keep E-Way Bill copies for 6 years per GST law
How Manufacturing ERP Handles E-Way Bill
Integrated ERP systems like Karygar auto-populate E-Way Bill forms from delivery challan or invoice data (customer GSTIN, PIN codes, HSN, value). Direct API integration with govt portal generates E-Way Bill with one click. System tracks validity period and alerts if extension needed. Digital record linking ensures every dispatch has corresponding E-Way Bill for compliance.
See E-Way Bill in Action
Don't just read about E-Way Bill. See how Karygar automates this process to reduce manual work and errors on your factory floor.