In simple terms, the meaning of e-Way Bill refers to a digital document that must be prepared before the movement of goods between or within states to ensure tax compliance and logistics transparency.
According to Rule 138 of the CGST Rules, 2017, every registered person/enrolled transporter responsible for the transportation of goods must generate an e-Way Bill through the official GST e-Way Bill portal before shipment.
The e-Way Bill was implemented to replace numerous state-level road permit systems and establish a unified framework for tracking goods movement throughout India. It is crucial to enhance compliance, efficiency, and accountability in India’s logistics and taxation system.
Key Takeaways
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An e-Way Bill (EWB) is a mandatory electronic document required for transporting goods valued over ₹50,000 under the GST framework to ensure tax compliance.
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The EWB system is undergoing major upgrades, including the launch of E-Way Bill 2.0 (July 2025) and compulsory Two-Factor Authentication (2FA) for enhanced security and reliability.
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To prevent fraudulent backdating, the system restricts the generation of an EWB for documents, such as invoices, that are older than 180 days.
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E-way Bill validity is calculated based on distance (one day per 200 km) and can now be extended for a maximum total period of 360 days from the date of generation.
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Although non-compliance results in a penalty of 100% of the tax or ₹10,000 (whichever is higher), penalties are typically waived if there is a minor procedural lapse with no proven intent to evade tax.
Also read: Section 44AE of Income Tax Act here
e-Way Bill Latest Updates
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NIC introduced the new portal E-Way Bill 2.0 on July 1, 2025 for uninterrupted access and real-time data sync with the existing system.
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E-Way Bill 2.0 supports consolidated bill generation, Part A-based creation, and cross-portal updates to boost logistics efficiency.
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E-way bill validity limited to 360 days from the original generation date, effective January 1, 2025.
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Bills can’t be generated for documents older than 180 days to curb backdated misuse.
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2FA and interoperability strengthened in August 2025, and October 2025 rulings clarified that no penalty applies without intent to evade tax.
Also, check out What is GST and its types here
Understanding the e-Way Bill System under GST
The eWay Bill system under GST is one of India's largest real-time digital compliance networks. Instead of a manual or paper-based permit, it uses the GST e-way bill system, which connects the GST Network (GSTN) to transport databases to enable live confirmation of all goods movements. Data entered on invoices and transportation papers is automatically synchronised with the portal, avoiding human error and providing a digital audit trail.
This GST e-bill system uses APIs, SMS services, and mobile apps to link with ERP or billing software, allowing firms to automate creation directly from their accounting systems. The system also has advanced features like consolidated bill creation, multi-vehicle updates, and cross-portal synchronisation, which ensure data accuracy and efficient product tracking.
What are the Components of e-Way Bill?
Before the goods move, the e-Way Bill system initiates a rules-driven digital workflow that lasts until the consignment arrives at its destination. Its two main components are:
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Part B: Transporter information, such as vehicle number or transporter ID for road, rail, air, or ship.
After Part A and Part B data are ready, the consignor, recipient, or transporter sends the information to the e-Way Bill portal. Then, a unique e-Way Bill Number (EBN), which functions as a digital consignment record, is generated upon successful submission.
All parties involved (consignor, consignee, and transporter) can see this EBN and its related information, which tax authorities can confirm while the item is in transit. If the shipment is transferred to a different transporter or vehicle, then Part B must be revised accordingly. Once modified, the consignor or recipient cannot transfer the EBN to a different transporter.
Objectives of e-Way Bill
The e-way bill objective under the GST framework is to create a transparent, practical, and technology-driven framework for transporting goods across India. It ensures:
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Validate transportation of goods above the ₹50,000 threshold to ensure GST compliance.
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Reduce tax evasion with digital tracking and verification in transit.
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Real-time monitoring allows authorities to trace consignments efficiently.
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Automation helps to simplify documentation and reduce manual errors.
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Enhance accountability and transparency among suppliers, transporters, and recipients.
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Improve logistics efficiency by reducing checkpoint delays and allowing for faster goods transport.
When is E-Way Bill Required?
Any movement of goods valued more than ₹50,000, whether within a state (intra-state) or between states (inter-state), requires an e-Way Bill. Regardless of their value, some specified goods also need an e-Way Bill.
General requirements:
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Goods supply: For any transaction involving a "supply" defined by GST.
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Non-supply movements: Items moved for purposes other than supply, like stock transfers, job work, or returns.
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Inbound supply from unregistered individuals: Products obtained from vendors who are not GST-registered.
Special circumstances:
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Multiple consignments: Although shipments over ₹50,000 require an e-Way Bill, transporters carrying goods worth less than that need to carry an e-Way Bill in case of special goods like handicraft goods.
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Transhipment: The e-Way Bill needs to be updated with the new vehicle information if goods are moved to a different vehicle.
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Rail transport: The consignor or consignee must create an e-Way Bill and update Part B with the Railway Receipt number, even though Indian Railways is exempt.
Exemptions (when E-Way Bill is not required)
According to Rule 138(14) of the CGST Rules, goods listed in Notification No. 2/2017 - Central Tax (Rate) (except de-oiled cake) are excluded from e-Way Bill requirements.
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Value-Based Exemptions: The e-Way Bill limit in India is ₹50,000, except for handicrafts or goods transported for job activities.
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Transport Mode Exemptions: Goods delivered by non-motorised vehicles, such as bullock carts or hand-pulled rickshaws
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Government and Defence Exemptions: Goods transported for the central/state government or the Ministry of Defence.
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Customs and Transit Exemptions: Goods moving between ports, ICDs, CFSs, or to Nepal/Bhutan.
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Exemptions for Local Transportation: Movements up to 20 km with a delivery challan are exempt.
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Special Transactions: Goods for non-supply purposes (job work, demos, exhibitions).
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Specific Goods Exemptions:
Goods including curd, lassi, buttermilk, fresh milk and pasteurised milk without added sugar; vegetables; fruits; unprocessed tea leaves; live animals; cereals; books and educational materials; unbranded rice; salt, LPG for domestic use, kerosene distributed through via Public Distribution System (PDS), natural or cultured pearls, postal baggage, precious or semi-precious stones, currency, goldsmith and silversmith wares, used personal and household effects, newspapers and journals.
Who Should Generate an E-Way Bill?
The individual who starts the movement of goods and their GST registration status determines who creates an e-Way bill. According to the e-Way bill system, the responsible party for compliance includes:
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Registered Person (Supplier/Consignor)
Must generate the e-Way Bill when dispatching goods worth over ₹50,000. The bill should be prepared before the goods are dispatched.
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Registered Recipient (Consignee)
Required to generate the e-Way Bill when purchasing from an unregistered supplier. It acts on behalf of the supplier to ensure compliance.
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Transporter
Must create an e-Way Bill if neither the consignor nor consignee generates it. They can also generate a Consolidated e-Way Bill (Form EWB-02) for multiple consignments in a single vehicle. Unregistered transporter can enroll on the portal and then generate e-Way bills.
How to Generate an E-Way Bill?
Registration on the official e-Way Bill portal is required to generate an e-Way Bill.
For Registered GST Taxpayers
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Visit the official GST e-Way Bill portal.
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Click "e-Way Bill Registration"
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Click "Go" after entering the displayed captcha code and your GSTIN.
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Check the information about your company that was obtained from the GST portal.
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Enter your registered mobile number, then use the OTP sent to that number to confirm it.
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To access the e-Way Bill system, create a username and password.
For Unregistered Transporters
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Visit the official GST e-Way Bill portal
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Select "Enrolment for Transporters"
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Enter information like the company name, PAN, address, phone number, and state.
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A distinct 15-digit Transporter ID (TRANS ID) is created following submission.
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Create and oversee e-Way Bills for customers using this ID.
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After registering, users can use the web portal, SMS, mobile app, or API integration to create e-Way Bills.
Documents Required for E-Way Bill
The following key documents must be provided to generate an e-Way Bill successfully:
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Invoice/Challan: Copy of Tax Invoice, Bill of Supply, or Delivery Challan.
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Transporter ID: TRANS ID for unregistered transporters.
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Vehicle/Transport Docs: Vehicle number for road; Transport Document number/date for rail, air, or ship.
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GST Details: Supplier and recipient GSTIN, address, and PIN codes.
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Goods Info: Description, quantity, value, and HSN code.
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Transport Mode & Distance: Road, rail, air, or ship, with approximate km for validity calculation.
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Invoice Date: Must be within 180 days of e-Way Bill generation.
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Security: Two-Factor Authentication (2FA) login required.
E-way bill Rules
Businesses must adhere to these key E-way Bill rules before generating it to guarantee its validity and compliance:
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Mandatory generation: Before transporting goods worth more than ₹50,000 (interstate) or according to state-specific limits (intra-state), an e-way bill must be prepared.
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Limit on invoice date: (effective January 2025) Only invoices issued within the last 180 days are accepted.
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Extension of validity: The E-way bill has a 360-day maximum validity period from the issue date.
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Real-time updates: Vehicle updates must be made within four hours of dispatch, and GSTN syncing is instantaneous. Failure to comply with may result in penalties.
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Two-Factor Authentication (2FA): Since April 2025, a new e-Way Bill rule requiring two-factor authentication (2FA) has been mandated for login.
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Parts A and B: A legitimate e-way bill needs both the transaction information (Part A) and the vehicle/transporter information (Part B).
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E-invoicing linkage: Linking e-invoices to e-way bill generation is required for companies with annual revenue over a certain threshold.
Validity and Expiry of E-Way Bill
The validity of an e-Way Bill defines how long a shipment can be in transit without breaking GST regulations. It is estimated depending on the distance travelled and is crucial for compliance, particularly in long-haul or multi-transporter movements.
Rules for Validity
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Type of Vehicle / Cargo |
Distance Covered per Day of Validity |
Notes |
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Regular vehicle / standard transport |
1 day for every 200 km or part thereof |
Validity expires at midnight of the last day, regardless of generation time. |
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Over Dimensional Cargo (ODC) vehicle |
20 km (or part thereof) |
Validity expires at midnight of the last day, regardless of generation time. |
Conclusion
The e-Way Bill is a cornerstone of GST compliance. It ensures the transparent and streamlined movement of goods across India. Businesses can optimise logistics and stay compliant by knowing how to generate an e-Way Bill online, its validity rules, exemptions, and penalties. The system benefits vendors, transporters, and tax authorities by enforcing accountability, bringing efficiency and real-time tracking.
