What is an e-way bill and when do you need one?
An e-way bill (EWB) is an electronic document generated on the National Informatics Centre (NIC) e-way bill portal that must accompany the movement of goods worth more than INR 50,000 in a single consignment. It is required under Rule 138 of the CGST Rules, 2017.
Every Indian manufacturer who dispatches or receives goods above the threshold is in scope. The bill records what is moving, between which two parties, in which vehicle, and for how long the document is valid. Without a valid e-way bill, goods can be detained under Section 129 of the CGST Act with penalty equal to 200% of the tax (capped at the value of goods) plus the tax itself.
The system was rolled out for inter-state movement on 1 April 2018 and for intra-state movement progressively across states between April-June 2018. By June 2018, every state required EWBs for both inter- and intra-state movement above the prescribed threshold.
Threshold limits in 2026
The threshold is consignment value (taxable value plus tax). Most states use INR 50,000, but some have higher intra-state thresholds:
- Inter-state movement: INR 50,000 across all states.
- Intra-state movement (general): INR 50,000 in most states.
- Tamil Nadu intra-state: INR 1 lakh.
- Delhi intra-state: INR 1 lakh.
- Maharashtra intra-state: INR 1 lakh for any goods, INR 50,000 specifically for textiles.
- West Bengal intra-state: INR 1 lakh.
- Bihar intra-state: INR 1 lakh.
Part A vs Part B: who does what
An e-way bill has two parts:
Part A contains invoice details: GSTIN of supplier and recipient, invoice number, date, HSN code, value, tax. Part A is generated by the consignor (or, for inward, the consignee). Once Part A is generated, the system produces an EWB number but the document is not yet valid - the goods cannot move.
Part B contains transport details: vehicle number (or transporter ID), distance to be covered. Part B is generated by the consignor or the transporter, depending on who arranges the vehicle. Once Part B is filled, the EWB becomes valid and goods can move.
If the consignor hands over goods to a transporter without specifying a vehicle, the consignor generates Part A and gets an EWB number, then the transporter generates Part B once the vehicle is loaded. This split is normal for LTL (less-than-truckload) shipments.
Validity period
An EWB is valid for a limited time based on distance:
- Up to 200 km: 1 day from Part B generation.
- Every additional 200 km or part thereof: add 1 day.
- Over-dimensional cargo (ODC): 1 day per 20 km.
Multi-vehicle journey (transhipment)
When goods are transferred from one vehicle to another mid-journey (a transhipment, common in LTL and rail-road movements), the transporter must update Part B with the new vehicle. The original EWB remains valid - no new EWB is generated.
If the transhipment happens because of vehicle breakdown, the transporter can update Part B from the road. If transhipment is planned (e.g., at a warehouse hub), Part B is updated when the new vehicle is loaded.
Cancellation rules
An EWB can be cancelled within 24 hours of generation, provided goods have not yet moved and the EWB has not been verified by any check-post officer. Cancellation reasons include:
- Wrong invoice number or value entered.
- Vehicle change before dispatch.
- Order cancellation.
- Wrong GSTIN of recipient.
When goods movement does NOT need an e-way bill
Some movements are exempt:
- Consignment value below INR 50,000 (or the higher state threshold).
- Goods listed in Annexure to Rule 138 (mostly fresh fruits, vegetables, milk, agricultural produce).
- Goods moved by non-motorised conveyance (handcart, bicycle).
- Movement of empty cargo containers.
- Goods being transported to/from a weighbridge within 20 km of the consignor or consignee with a delivery challan.
- Movement under customs supervision (warehoused, in-transit).
Common e-way bill mistakes
From e-way bill data across the 200+ daily consignments handled by ERPDrive customers, these mistakes dominate:
- Vehicle number typed wrong. Format should be the exact registration as on RC: 2-letter state + 2-digit RTO + 2-letter series + 4-digit number (e.g., MH04AB1234). One character off and check-post officers can challenge.
- HSN code mismatch between invoice and EWB. Both must match exactly. If you use 4-digit on invoice and 6-digit on EWB (or vice versa), the check-post flags it.
- Distance entered too low. Officers calculate distance via the integrated maps; if the actual distance exceeds the entered distance, validity is shorter than needed.
- Filing Part A without Part B for too long. Goods cannot move with only Part A. Generate Part A only when ready to dispatch.
- Not updating Part B for transhipment. Each new vehicle must be added.
- Reverse charge invoices missed. EWB is required for reverse-charge transactions too, generated by the recipient.
E-way bill blocking and how to avoid it
Per Rule 138E of the CGST Rules, a GSTIN is blocked from generating e-way bills if it has failed to file GSTR-3B for two or more consecutive months (for QRMP filers, two consecutive quarters). Once blocked, no Part A or Part B can be generated under that GSTIN until the pending return is filed.
This is a significant operational risk - your factory simply cannot ship if your accounts team is behind on returns. We have seen plants miss customer dispatches for 3-4 days because GSTR-3B was filed late. The defense is operational: GSTR-3B filing must be on or before due date, every month, no exceptions.
ERP automation of e-way bills
Manual e-way bill generation - logging into the NIC portal, copy-pasting invoice data, typing vehicle numbers - is feasible at 5-10 dispatches per day. Above that volume, it breaks. The errors are not catastrophic individually, but cumulative: one missed EWB costs INR 12,000-1,00,000 in detention penalty.
ERPDrive integrates directly with the NIC e-way bill API via a GSP (GST Suvidha Provider) connection. The flow:
- Dispatch clerk approves the invoice and selects the vehicle from the carrier master.
- ERPDrive auto-generates Part A and Part B in a single API call.
- EWB number is printed on the invoice + delivery challan.
- Vehicle release gate scans the EWB QR code; gate releases only if EWB is valid.
- If the journey changes mid-route, the transporter updates Part B from the mobile app.
Frequently Asked Questions
What is the e-way bill threshold in 2026?
The threshold is INR 50,000 of consignment value (taxable value plus tax) for inter-state movement across all states. For intra-state movement most states use INR 50,000, but Tamil Nadu, Delhi, Maharashtra (except textiles), West Bengal, and Bihar use INR 1 lakh. When in doubt, generate an e-way bill - the cost of generating is nothing while detention penalty can exceed INR 1 lakh.
How long is an e-way bill valid?
Validity depends on distance: 1 day for up to 200 km, plus an additional day for every 200 km or part thereof. Over-dimensional cargo is 1 day per 20 km. Validity is counted from Part B generation. Part B can be updated up to four times during the journey to extend validity if the vehicle is delayed.
What is the difference between Part A and Part B of an e-way bill?
Part A contains invoice details: GSTIN of supplier and recipient, invoice number, date, HSN code, value, tax. Part B contains transport details: vehicle number (or transporter ID) and distance. Part A alone is insufficient - goods cannot move until Part B is generated. The consignor or transporter can generate Part B depending on who arranges the vehicle.
Can I cancel an e-way bill after generating it?
Yes, within 24 hours of generation, provided the goods have not yet started moving and the e-way bill has not been verified by any check-post officer. After 24 hours or once verified, cancellation is not allowed; you must complete the journey and reverse via credit note plus a new e-way bill for return movement.
What is the penalty for transporting goods without an e-way bill?
Under Section 129 of the CGST Act, goods can be detained with penalty equal to 200% of the tax payable (capped at the value of the goods) plus the tax itself. For a INR 5 lakh consignment with 18% GST, penalty can be INR 1.8 lakh plus tax. The vehicle is held until penalty is paid. Repeat offences attract penalties up to 50% of the value of goods under Section 130.
Why am I unable to generate e-way bills suddenly?
Most likely your GSTIN is blocked under Rule 138E. Blocking happens automatically if GSTR-3B is unfiled for two or more consecutive months (or two consecutive quarters for QRMP filers). File the pending return and the block lifts within 24 hours. This is a major operational risk - factories have missed dispatches for days because the accounts team was behind on returns.
Does e-way bill apply for job work consignments?
Yes. Even though job-work consignments do not involve a sale, the movement still requires an e-way bill if value exceeds INR 50,000. Job-work challans are documented under section 143 of the CGST Act and the e-way bill should be generated with 'Subtype: Job Work' selected. The return movement of processed goods also needs a fresh EWB.
Sources & References
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