To ensure tax compliance, the E-Way Bill, a digital document under GST, is required for interstate transportation of goods valued at more than 50,000 or in accordance with state regulations. However, there may be instances in which the transaction is cancelled, the goods are not transported as scheduled, or inaccurate information is entered.
To prevent misuse and penalties in this situation, an E-way bill cancellation must be done. However, to maintain accountability and transparency, the GST laws state that an E-way bill can be cancelled only under certain circumstances and within a specific time period. Understanding when and how an E-way bill can be cancelled is important for businesses, transporters, and tax professionals seeking to avoid penalties and operational interruptions, and fines of up to ₹10,000 or tax evaded, whichever is higher.
Also Read: What is an E-Way Bill?
Key Takeaways
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E-way bills can only be cancelled within 24 hours of generation if the products have not been transported or the details provided are incorrect.
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Cancellation is not permitted once an appropriate authority has confirmed an e-way bill during transportation.
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E-way bills can only be created for invoices dated within the past 180 days.
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Validity extensions are limited to 360 days from the initial generating date, guaranteeing timely compliance.
Also Read: How to Login E-Way Bill Portal?
When Can an E-Way Bill Be Cancelled?
E-way bill cancel time is strictly within 24 hours from generation. This E-way bill cancellation limit timeframe applies regardless of whether subsequent modifications, such as vehicle or transporter changes, have been made. After this 24-hour period has expired, the portal automatically locks the cancellation function. Thus, no further action can be taken by the generator via standard channels.
The recipient or consignee has an additional 72 hours from the time of generation or before the delivery of the goods, whichever comes first, to reject the bill if the generator misses the E-way bill cancel time. However, you should be aware that this is not a cancellation by the original creator, but rather a rejection.
Additionally, the cancellation option is permanently disabled if a tax officer verifies the E-Way Bill at checkpoints or during transit. Verification creates a compliance record. Enabling cancellation after verification would damage the audit trail and draw attention to potential evasion. The only viable options in these situations are to either wait for the bill to expire naturally or ask the recipient to reject it within 72 hours.
Valid Scenarios for Cancellation
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Duplicate generation: When multiple E-Way Bills are inadvertently created for the same shipment due to system glitches or operator oversight.
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Data entry errors: Incorrect inputs, such as incorrect GSTIN, product code, vehicle number, or destination address, that cannot be corrected by Part-B updates, necessitate bill cancellation and regeneration with accurate information.
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Order cancellation: When a buyer cancels a purchase or when the shipment is cancelled due to reasons such as stock unavailability, market conditions, or logistics disruptions.
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Non-movement of goods: If dispatch is delayed indefinitely or shelved.
Also Read: E-way Bill Generation Process
E-way Bill Cancellation Process
With the introduction of the E-Way Bill 2.0 portal (launched 1 July 2025 for enhanced redundancy and system reliability), cancellation can now be executed on either the original E-Way Bill 1.0 portal or the new E-Way Bill 2.0 portal, with real-time synchronisation ensuring data consistency across both systems.
Follow these standard steps to know how to cancel a E-way bill:
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Go to the ewaybillgst.gov.in (E-Way Bill 1.0) or ewaybill2.gst.gov.in (E-Way Bill 2.0) using your registered GSTIN and password.
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Multi-Factor Authentication (MFA) is now mandatory for all taxpayers as of 1 April 2025. So ensure your registered mobile number is active to receive the OTP.
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From the dashboard menu, select the "E-Way Bill" tab (or "Consolidated EWB" if applicable).
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Choose "Cancel" from the dropdown menu.
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Enter the 12-digit E-way Bill number and click "Go." The system will retrieve the bill details for verification.
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Review details for the generated bill information (consignor, consignee, goods description, value, vehicle details). Confirm that this is the correct bill before proceeding with cancellation.
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Select your reason, such as "Goods not transported," "Order cancelled," "Wrong entry," or "Duplicate generation." Recording the reason aids audit trails and demonstrates intent to comply.
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Click "Submit" to complete the cancellation. The portal confirmation appears, and the status updates to cancelled.
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The cancellation will be recorded under "Cancelled E-Way Bills" in your portal account history.
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Download and retain the cancellation confirmation for GST compliance records and potential officer inquiries.
After cancellation, generate a new bill if needed. Track status under "Cancelled E-Way Bills."
E-way Bill Cancellation Limitations
An E-Way Bill's cancellation is narrowly bounded by the GST rules and cannot be exercised in certain circumstances, including:
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Officer Verification Blocks Cancellation: Once an E-Way Bill is verified or intercepted by an authorised GST officer during transit, the generator loses the ability to cancel it completely. Trying to cancel after verification may flag the account for inspection and may result in enforcement action.
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No Cancellation After 24 Hours: The 24-hour window from generation is absolute and non-negotiable. After this period expires, the portal's cancellation interface automatically closes, and no cancellation requests are accepted, regardless of whether the goods have been transported.
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Updated Bills Retain the 24-Hour Limit: If an E-Way Bill is updated for vehicle changes, transporter changes, or transshipment (Part B updates), the 24-hour E-way bill cancellation limit window does not reset. For consolidated bills with vehicle details that change, regeneration is the only option after 24 hours; cancellation is not available.
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Recipient Rejection Is Not Cancellation: Only the generator has the option to cancel an E-Way Bill. The recipients may only reject it within 72 hours, which records non-acceptance, but that does not invalidate the bill.
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Part A Details Cannot Be Corrected Post-Generation: Errors in Part A (consignor, consignee, invoice number, value, document type) cannot be corrected even within 24 hours. The cancellation and regeneration are the only remedies. This restriction exists because Part A data feeds directly into GST reconciliation and GSTR filings, and allowing edits would disrupt tax compliance records.
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Consolidated E-Way Bills Have Stricter Rules: Consolidated E-Way Bills (CEWBs) aggregating multiple invoices into one bill for a single vehicle cannot be cancelled post-24 hours. Cancelling a CEWB would require cancelling all constituent individual E-Way Bills, a process that is operationally complex and discouraged.
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Legal Implications of Non-Cancellation: Failing to cancel an invalid E-Way Bill and subsequently using it for goods movement or allowing it to be used can expose the business to penalties, detention of goods, and scrutiny by tax authorities.
Common Issues While Cancelling E-way Bill
Businesses face several hurdles during E-way bill cancellation, including the following:
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Portal errors/timeouts: Clear cache and use a stable internet. Rechecking details and retrying during off-peak hours may help.
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Officer verification restriction: Cancellation is not permitted once an e-way bill is verified by tax officers during transit or if the 24-hour cancellation window has expired.
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GSTIN blocked due to non-compliance: If GSTR-3B returns are not filed for two months in a row, the GSTIN may be blocked, limiting the creation or cancellation of e-way bills until returns are filed or Form EWB-05 is completed.
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Incorrect Cancellation Details: Failing to select a valid cancellation reason or entering an incorrect EWB number can result in rejection.
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Duplicate E-Way Bill Confusion: Do not try to cancel duplicate e-way bills for the same invoice without identifying the active 12-digit EWB number. This can lead to portal errors.
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Login issues: Verify GSTIN credentials; use OTP reset.
How to Extend the Validity Period of E-Way Bills?
Extensions are available within a narrow timeframe, though approval depends on valid justification. It includes:
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8 hours before expiry.
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Up to 8 hours after expiry.
The extended validity is calculated based on the remaining distance to travel, following the same formula, one day for every 200 km or part thereof, rather than a fixed duration.
Any party involved (consignor, consignee, or current transporter) may request an extension on the GST portal by logging in, selecting "Extend EWB," entering the e-way bill number, stating the reason (e.g., vehicle breakdown, traffic, or weather delays), and providing Part-B updates like current location and estimated additional distance. This avoids E-way bill cancellation limit issues during delays. Extensions cannot exceed 360 days from the date of generation (original).
Extend before goods movement starts, within 8 hours before or after expiry, up to 360 days from generation. Log in to the portal, go to "Extend EWB," enter the number, and the new validity date (justify if delayed, e.g., breakdown). Submit; approval is not always needed if timely.
However, note that, unlike cancellation, extension is not done instantly because approval timelines may vary. And once the 8-hour post-expiry window closes, no extension is permitted, even for valid reasons.
Also Read: Types of GST
Conclusion
Mastering E-way bill cancellation within 24 hours via GST portal steps ensures GST compliance and prevents penalties like ₹10,000 fines or detention. Key rules, including time limits, valid reasons, and no post-verification cancellations, can help you avoid common pitfalls. Always prioritise accuracy in generation and extensions for seamless logistics.
