The e-way bill system introduced under GST plays a vital role in monitoring the movement of goods and ensuring adherence to regulations. Designed to make transportation more efficient, the e-way bill helps streamline logistics, minimises delays, and improves tax clarity.Â
However, due to diverse regulations surrounding eway bill use, businesses need to understand different aspects of eway bill – when and how to create, cancel, or consolidate e-way bills.
This guide outlines key e-way bill regulations, including exceptions, obligations, validity periods, and tips for compliance, helping business owners and transporters effectively navigate the regulatory framework.
1.eWay Bill Rule 138 – Mandatory e-Way Bill for Goods Movement
e-Way bills must be generated for goods valued above Rs.50,000, whether for supply, reasons other than supply, or receiving goods from an unregistered person. Information must be provided in Part A of FORM GST EWB-01.
Exceptions include inter-state job work and movement of handicrafts, where an e-way bill is required regardless of value.
2.eWay Bill Rule 138(2) – Transport by Registered Person
If the transporter is a registered person or the recipient, they can generate the e-way bill. The transporter’s details must be filled in Part B of FORM GST EWB-01 for movement by hired vehicle, rail, air, or vessel.
3.eWay Bill Rule 138(3) – Transporter E-Way Bill Generation
When the goods are handed to a road transporter, they must generate the e-way bill on the GST portal if the consignor or consignee has not done so.
Optional E-Way Bill for Low-Value GoodsÂ
A registered person or transporter may choose to generate an e-way bill for consignments below Rs.50,000.
Provisions for Unregistered PersonÂ
Unregistered persons or their transporters can generate an e-way bill if transporting goods.Â
Distance-Based Conveyance Details
For movements under 50km within the state, conveyance details in Part B are optional.
4.eWay Bill Rule 138(4) – Unique e-Way Bill Number (EBN)Â
Once generated, the e-way bill provides a unique eway bill number (EBN), which is accessible to the supplier, recipient, and transporter.
5.eWay Bill Rule 138(5) – Transfer of Goods Between Vehicles
f goods are moved from one vehicle to another mid-transit, the transporter must update the e-way bill details before continuing.
6.eWay Bill Rule 138(6) – Consolidated E-Way Bill
When transporting multiple consignments, the transporter can generate a consolidated e-way bill, listing each consignment’s e-way bill number.
7.eWay Bill Rule 138(7) – Transporter’s Duty if e-Way Bill Not Generated
If the consignor or consignee does not generate an e-way bill for goods over Rs.50,000, the transporter must generate it before the journey begins.
8.eWay Bill Rule 138(8) – Data Sync with GSTR-1
Data from Part A of FORM GST EWB-01 syncs with the supplier’s GSTR-1 filing, reducing duplicate data entry.
9.eWay Bill Rule 138(9) – e-Way Bill Cancellation
The e-way bill can be cancelled within 24 hours of generation if the goods aren’t moved or details are incorrect, provided no transit verification has occurred.
10.eWay Bill Rule 138(10) – Validity Period Based on Distance
e-Way bill validity depends on the distance limit (e.g., 1 day per 200 km), and extensions are possible under certain conditions if delays occur.
11.eWay Bill Rule 138(11) – Recipient’s Right to Accept or Reject
The recipient can accept or reject the e-way bill details within 72 hours of availability. Otherwise, it is automatically accepted.
12.eWay Bill Rule 138(13) – Inter-State and Intra-State ValidityÂ
e-Way bills are valid across all states and union territories.
13.eWay Bill Rule 138(14) – Exemptions for Certain Goods and Transport Modes
No e-way bill is needed for specified goods (e.g., live animals, fruits, vegetables) or for non-motorized transportation.
14.eWay Bill Rule 138A – Document Requirements for TransportÂ
The transporter must carry an invoice, bill of supply, delivery challan, and a copy of the e-way bill or EBN. RFID mapping is required if authorities are notified.
15.eWay Bill Rule 138B, 138C – Verification and RFIDÂ
GST officers may verify e-way bills and install RFID readers for tracking. Physical verification is limited to specific instances unless tax evasion is suspected.
16.eWay Bill Rule 138 D – Detention Information UploadÂ
Transporters can report vehicle detention beyond 30 minutes through FORM GST EWB-04 on the GST portal.
These rules streamline goods movement and simplify GST compliance while reducing bottlenecks and paperwork for transporters and businesses.
FAQs on eWay Bill Rules
Who is responsible for generating the e-way bill?
The supplier of goods is primarily responsible for generating the e-way bill. However, if the supplier does not generate it, the recipient can generate it as well.
What happens if the e-way bill expires?
If an e-way bill expires, it cannot be used for transportation. The goods must not be moved without a valid e-way bill, and penalties may be applied for non-compliance.
Can an e-way bill be canceled?
Yes, an e-way bill can be cancelled within 24 hours of its generation, provided it has not been utilised for transportation.
What are the penalties for not generating an e-way bill?
Failing to generate an e-way bill when required can lead to penalties, including a fine that may be equal to the tax amount involved in the transaction.
Can an e-way bill be generated for multiple invoices?
Yes, an e-way bill can be generated for multiple invoices under a single transport. However, the details of each invoice must be accurately reflected in the e-way bill.
Is it mandatory to carry a physical copy of the e-way bill during transportation?
Yes, while electronic copies are acceptable, it’s advisable to carry a physical copy of the e-way bill along with the goods for easy verification by authorities during transit.
What happens if goods are transported without an e-way bill?
Transporting goods without an e-way bill can lead to penalties, confiscation of goods, and potential fines levied by tax authorities. The vehicle may also be detained.
