E-Way Bill Rules 2026 - Complete Guide for Businesses

What is E-Way Bill?

An E-Way Bill (Electronic Way Bill) is a document required for transportation of goods from one place to another. Think of it as a digital permit that proves the goods being transported are legitimate and tax-compliant.

Why Was It Introduced?

• Prevent tax evasion during goods movement
• Enable physical verification by tax officers on highways
• Track inter-state movement of goods
• Reduce transit time (compared to old paper-based system)

When is E-Way Bill Required?

Value Threshold

Inter-State Movement: Mandatory if consignment value exceeds ₹50,000

Intra-State Movement: Rules vary by state

• Most states: ₹50,000 threshold
• Some states: ₹1,00,000 threshold
• Check your state's specific rules

Who Needs to Generate?

• Registered persons: For supply of goods
• Unregistered persons: For inter-state movement > ₹50,000
• Transporters: Can generate on behalf of supplier
• Recipients: For goods received from unregistered supplier

Exemptions - When E-Way Bill NOT Required

Goods Exempted

• Goods under Schedule III (alcoholic liquor, petroleum products, etc.)
• Jewellery (specific conditions apply)
• Currency and used personal effects
• Postal department goods

Situations Exempted

• Movement within same city/municipality (if distance < 10 km)
• Goods transported by non-motorized vehicles
• Goods from customs port/airport/ICD to inland container depot
• Empty cargo containers
• Transit cargo from/to Nepal and Bhutan

Value-Based Exemption

Consignment value ≤ ₹50,000 (for inter-state)
Check state rules for intra-state thresholds

E-Way Bill Validity Period

Validity depends on distance to be covered, not consignment value or vehicle type.

Extension of Validity

If goods can't reach destination within validity period due to:

• Transit delay/breakdown
• Accident
• Natural calamity

You can extend validity before expiry by updating Part-B (transporter details) on the portal.

How to Generate E-Way Bill

Step-by-Step Process

Step 1: Login to Portal

Visit ewaybillgst.gov.in
Login with your GSTIN credentials

Step 2: Enter Invoice Details (Part-A)

• Invoice/Challan number and date
• Value of goods
• HSN code (first 4 digits minimum)
• Reason for transportation (supply/job work/etc.)
• From and To GSTIN/address

Step 3: Enter Transport Details (Part-B)

• Transporter ID (if using transporter)
• Transport document number (LR number)
• Vehicle number
• Mode of transport (Road/Rail/Air/Ship)

Step 4: Generate EWB Number

System generates unique 12-digit E-Way Bill number
Share this number with transporter

Who Can Generate Part-B?

Part-A: Only supplier/recipient
Part-B: Supplier, recipient, OR transporter

Penalties for Non-Compliance

Moving Goods Without E-Way Bill

• Penalty: ₹10,000 OR 100% of tax evaded (whichever is higher)
• Plus: Goods and vehicle can be detained
• Release: Only after penalty payment

Wrong Information on E-Way Bill

• Incorrect invoice details
• Wrong HSN code
• Mismatch in value
• Penalty: Similar to non-generation

Expired E-Way Bill

Moving goods with expired e-way bill = moving without e-way bill
Same penalties apply

E-Way Bill Best Practices

For Suppliers

• Generate before goods leave your premises
• Verify vehicle number before Part-B entry
• Keep copy of EWB in vehicle
• Track EWB status on portal
• Cancel EWB if transport cancelled (within 24 hours)

For Transporters

• Verify EWB number before loading
• Check validity period vs journey time
• Keep digital or physical copy in vehicle
• Update Part-B with correct vehicle number
• Extend validity if delay expected

For Recipients

• Verify EWB when goods arrive
• Check if details match invoice
• Report discrepancies immediately

Common Issues & Solutions

Issue: Wrong Vehicle Number Entered

Solution: Update Part-B with correct vehicle number. Can be done by transporter or supplier before goods reach destination.

Issue: E-Way Bill Generated But Goods Not Moved

Solution: Cancel EWB within 24 hours of generation. After 24 hours, cancellation not allowed.

Issue: Breakdown During Transit

Solution: Update Part-B with new vehicle number. Validity period continues from original EWB.

Issue: Multiple Invoices in One Shipment

Solution: Generate consolidated E-Way Bill with total value. Attach all invoice details.

Recent Updates (2024-2026)

SMS/Email Alerts

Portal now sends alerts when:

• EWB about to expire (24 hours before)
• EWB generated on your GSTIN by someone else
• Multiple EWBs generated from same invoice

Aadhaar-Based Generation

Unregistered persons can now generate EWB using Aadhaar authentication (no need for GST registration).

API Integration

Many accounting software now have direct API integration with E-Way Bill portal for auto-generation.