E-way Bill — Rules, Generation, and Compliance

Learning Objectives

• Understand what an E-way Bill is and when it is mandatory
• Know the threshold values and exempted categories
• Generate an E-way Bill on the portal (Part A and Part B)
• Calculate validity period based on distance
• Cancel and extend an E-way Bill correctly
• Understand Sunrise Retail's E-way Bill obligations for its April consignments

What Is an E-way Bill?

An E-way Bill (EWB) is an electronic document generated on the GST portal before transporting goods whose value exceeds the prescribed threshold. It is essentially a digital consignment note that confirms the movement of goods is backed by a valid GST transaction.

Before GST, physical waybills and forms (Form 402, Form 38, etc.) were required state by state. E-way Bill replaced all of these with a single national system — ewaybill.nic.in.

Why E-way Bill?

When Is an E-way Bill Required?

Threshold Rule

An E-way Bill is required for movement of goods whose consignment value exceeds ₹50,000 — whether by road, rail, air, or waterways.

Consignment value = Invoice value including GST (not just the taxable value)

Who Can Generate an E-way Bill?

When Is an E-way Bill NOT Required?

Even if value > ₹50,000, EWB is exempt in these situations:

Telangana-specific: Movement within 10 km within the same state for delivery from business place to transporter's godown — EWB not required for Part B (vehicle details).

State-Wise EWB Intra-State Threshold Table

While the national threshold for interstate EWB is uniformly ₹50,000, intra-state thresholds vary substantially by state — and several states have notified higher thresholds or commodity-specific exemptions. Always check the state's current notification before processing any consignment near the boundary.

Practical implication for Sunrise Retail (Telangana): Their intra-state threshold is the standard ₹50,000. Every consignment above ₹50,000 to a Telangana buyer (Digital Hub, walk-ins, anywhere within state) needs an EWB. For sales to TN/Delhi/Bihar/MP/WB buyers, the interstate ₹50,000 threshold applies regardless of those states' intra-state thresholds — interstate is always national-standard ₹50,000.

Verification: When in doubt, check the latest notification on the destination state's GST website or the CBIC EWB portal. State thresholds have moved repeatedly since 2018; treating an old threshold as current can mean either over-generating EWBs (annoying but harmless) or under-generating (penalty under Section 129).

Generating EWB via SMS — The Backup Channel

How SMS EWB Works

Step 1 — One-Time Registration (required before first use)

Log into ewaybill.nic.in (when portal works)
→ Settings → Register for SMS Facility
→ Enter mobile number (max 2 per GSTIN)
→ Verify via OTP
→ Done — the registered numbers can now generate EWB via SMS

Step 2 — Send EWB Generation SMS

Send to 7738299899 in this exact format (no spaces in tokens):

EWBG <SUPPLY_TYPE> <TYPE_OF_DOC> <DOC_NO> <DOC_DATE> <CUST_GSTIN> <DEL_PIN> <HSN> <VALUE> <REASON> <TRANS_DOC> <VEHICLE_NO>

Example:
EWBG OSUP TI SR-2025-0042 10/04/2025 36AAADH4321E1ZQ 500003 8517 566400 SUPPLY DOC2025 TS07CD4567

Step 3 — Receive EWB Number via SMS

Within ~30 seconds, the portal SMSes back the 12-digit EWB number and validity expiry timestamp. The driver carries this number as proof; checkpoints verify by entering the number on the EWB portal.

Useful When

• Portal is down — month-end, quarter-end peak loads, government IT maintenance
• Field operations — driver is at the loading bay, no laptop / internet, needs EWB in 60 seconds before truck leaves
• Power cut at the warehouse — generator on but Wi-Fi down

Limitations

• One SMS = one EWB (no bulk generation)
• Limited to one HSN per EWB (multi-HSN consignments still need the portal)
• Pre-registered mobile number only — random numbers can't generate

Always have the SMS facility set up even if you primarily use the portal — it's the only fallback when the portal fails on filing day.

When EWB is NOT Required — Comprehensive List

A consolidated list of situations where EWB is exempt, even if the value exceeds the threshold. This is the single most-asked question from operations teams:

• Intra-state consignment below state-specific threshold — most states ₹50,000; Bihar, Delhi, MP, TN, WB ₹1,00,000
• Transport by non-motorised vehicle — handcart, bullock cart, cycle rickshaw, hand-pulled rickshaw, animal-drawn carts
• Empty cargo containers / empty trucks returning — no goods of value
• Goods being moved under customs bond — from port/airport/customs station to ICD or customs-bonded warehouse
• Goods under customs seal — during transit through India of foreign goods (e.g., transit cargo to Nepal/Bhutan)
• Used personal & household effects — household goods of an individual, including cars driven by the owner during relocation
• Specific agricultural produce — milk, fresh vegetables, fresh fruits, eggs, fresh meat, fresh fish, live animals, plants, unprocessed natural produce moved directly by the agriculturist to first aggregation point
• Currency, securities, jewellery moved as personal possessions — cash, government securities, gold/silver coins, jewellery worn by a person during travel (not as a commercial consignment)
• Petroleum products — petrol, diesel, ATF, natural gas, crude oil (currently outside GST framework, separate central/state movement rules apply)
• Alcoholic liquor for human consumption — outside GST, governed by state excise rules; no EWB required under GST law
• Defence and military consignments — Ministry of Defence movements
• Goods being moved within the same business premises — e.g., from godown 1 to godown 2 on the same GSTIN, same premises
• Movement within 10 km (under same state-specific rule, mostly applies to consignment-to-transporter movements)
• Specified commodities notified state-by-state — natural sand, gravel, broken stone (state-specific), certain unbranded handloom products in West Bengal, hank yarn in Maharashtra
• Bond / sealed-container ICD movement — when goods move under bond or in sealed customs containers to/from an Inland Container Depot
• J&K intra-state movement — special carve-out; only interstate to/from J&K requires EWB
• Goods supplied by/to Government departments and government-controlled bodies for specific notified categories
• De minimis movement by non-motorised vehicle — even commercial movement, as long as no motor is involved

The bigger picture: EWB exemptions exist to balance the law's anti-evasion goal with operational practicality. They cluster around: (a) movements where evasion risk is low (agricultural produce, personal effects), (b) movements already tracked by another agency (customs bond, defence), and (c) commodities outside the GST framework (petrol, alcohol). For everything else, if value > threshold AND motorised AND not on the exemption list → EWB is mandatory.

E-way Bill — Part A and Part B

Every E-way Bill has two parts:

Part A — Supply Details (Mandatory for threshold crossing)

Part B — Transport Details

Part B can be filled later — if goods are handed to a transporter without vehicle details, Part A can be generated first and Part B updated when vehicle is confirmed (within the validity of Part A, which is 15 days).

Validity of E-way Bill

Validity starts from the time of generation and depends on the distance and cargo type:

Mode of transport matters: The distance bands apply to road transport. For rail, air, and ship, the distance is calculated differently (by the actual route), but the same validity table applies.

One "day" = the day of generation + the remaining portion of that calendar day + the next full calendar day.

Example: EWB generated on 5-Apr at 3:00 PM for a 350 km consignment → 3-day validity → expires at midnight on 8-Apr.

E-Way Bill Decision Flow

Is goods value > ₹50,000?
        │
     No ┤ EWB not required (unless state-specific rule applies)
        │
     Yes┘
        │
Is it a motorized vehicle?
        │
     No ┤ EWB not required (handcart/bullock cart)
        │
     Yes┘
        │
Is it an exempted goods category?
(natural sand, gravel, salt, agricultural produce to first aggregation point, etc.)
        │
     Yes┤ EWB not required
        │
     No ┘
        │
        ▼
   EWB IS REQUIRED
        │
   Who generates?
   ├── Supplier (most common — at time of dispatch)
   ├── Recipient (if supplier fails to generate)
   └── Transporter (if neither generates before movement starts)
        │
        ▼
   Fill Part A (supply details) → Fill Part B (vehicle) → EWB Number issued
        │
        ▼
   Print or share QR code → driver carries during transit
        │
        ▼
   Validity countdown starts from time of generation

Extension of Validity

If goods cannot be transported within the validity period (due to natural calamity, trans-shipment delay):

• The transporter can extend the EWB validity
• Extension must be done before the EWB expires
• System allows maximum 3 extensions

Cancellation of E-way Bill

An EWB can be cancelled within 24 hours of generation if:

• The transaction did not take place (order cancelled)
• Wrong details were entered
• Goods were not transported

Once a goods inspector verifies the EWB at a checkpoint, it cannot be cancelled even within 24 hours.

Sunrise Retail — E-way Bill Obligations

💼 Sunrise Retail Pvt Ltd — April 2025 transactions

Transaction 1 — Sale to Digital Hub, Secunderabad

Invoice: SR-2025-0042
Date: 10-Apr-2025
Value: ₹5,66,400 (incl. GST)
Delivery: Secunderabad, Telangana
Distance: ~12 km from Sunrise Retail's Madhapur location
EWB required? YES — value > ₹50,000

E-way Bill for this consignment:

• Part A: GSTIN SR → GSTIN Digital Hub, Invoice SR-2025-0042, HSN 8517, Value ₹5,66,400, Reason: Supply
• Part B: Vehicle TS07 CD4567, Road transport, Distance: 12 km
• Validity: 1 day (under 200 km)
• Who generates: Sunrise Retail (supplier) at time of dispatch

Transaction 2 — Sale to CloudStore, Bangalore

Invoice: SR-2025-0048
Date: 12-Apr-2025
Value: ₹3,89,400 (incl. GST)
Delivery: Koramangala, Bangalore, Karnataka
Distance: ~570 km from Hyderabad
EWB required? YES — interstate sale, value > ₹50,000

• Part A: GSTIN SR → GSTIN CloudStore, Invoice SR-2025-0048, HSN 8517, Value ₹3,89,400
• Part B: Vehicle MH06 EF7890 (if supplier arranges transport) or transporter's vehicle
• Validity: 5 days (400–600 km range)

Transaction 3 — Purchase from TechWorld, Mumbai

Invoice: TW-2025-0312
Date: 5-Apr-2025
Value: ₹14,16,000 (₹12,00,000 + IGST ₹2,16,000)
Distance: ~700 km from Mumbai to Hyderabad
EWB required? YES — interstate, value far exceeds ₹50,000

• TechWorld generates the EWB (supplier's responsibility for supply by road)
• TechWorld fills Part A (their GSTIN to Sunrise Retail's GSTIN)
• TechWorld or their transporter fills Part B (vehicle details)
• Sunrise Retail need only verify the EWB number upon delivery — no action required

Transaction 4 — Return (Debit Note) — TechWorld returns 2 phones

If Sunrise Retail returns 2 phones to TechWorld (purchase return):

• Movement of goods back to TechWorld
• A new EWB must be generated (for return supply)
• Reason for transport: "Return"
• Document: Debit Note / Return invoice

How to Generate E-way Bill on Portal

Website: ewaybill.nic.in

Step 1 — Registration and Login

→ Visit ewaybill.nic.in
→ Registration → GST Registered → Enter GSTIN, trade name, email, mobile
→ Send OTP → Verify → Create password
→ Login with GSTIN and password

Step 2 — Generate New EWB

Dashboard → E-way Bill → Generate New

SECTION A — SUPPLY DETAILS
Transaction Type: Regular (outward)
Sub-type: Supply (for sales)
Document Type: Tax Invoice
Document No: SR-2025-0042
Document Date: 10-Apr-2025
From (Bill from GSTIN): 36AACCS1234A1ZP — auto-filled
From (Bill from Place): 500081 (Madhapur pin)
To (Bill to GSTIN): 36AAADH4321E1ZQ
To (Bill to Place): 500003 (Secunderabad pin)
Consignee Name: Digital Hub Retail

SECTION B — PRODUCT DETAILS
HSN Code: 8517
Product Name: Smartphone
Description: Samsung Galaxy A54
Quantity: 30
Unit: NOS
Value: ₹4,80,000
Tax Rate: 18%
CGST: ₹43,200
SGST: ₹43,200
IGST: 0
Total Invoice Value: ₹5,66,400

SECTION C — TRANSPORT DETAILS
Mode: Road
Vehicle No: TS07CD4567
From: Madhapur, Hyderabad
Approximate Distance: 12 km

→ Submit
→ EWB Number Generated: 351234567890
→ EWB Valid Until: 11-Apr-2025 midnight
→ Download PDF / Print for driver

Step 3 — Attach EWB to Consignment

• Print the EWB (or share QR code digitally)
• Driver must carry the EWB document during transit
• At checkpoints, officers scan the QR code or enter EWB number
• The EWB is verified against the physical goods

EWB for Multi-Vehicle Shipment (Transshipment)

When goods are transferred from one vehicle to another mid-journey (e.g., large truck to smaller vehicle for last mile):

Original EWB: TS09AB1234 (Hyderabad to Bangalore, truck)
At Kurnool: goods transferred to TS10CD5678

→ Log into EWB portal → Update Part B → New vehicle number
→ EWB validity continues from the time of update

The EWB number remains the same — only the vehicle number in Part B is updated.

Penalty for Non-Compliance

Section 129 authorises GST officers to detain the vehicle and goods when EWB violations are detected at checkpoints. The goods can be released only after penalty payment.

Practice Exercise

Exercise 1: Sunrise Retail delivers 5 phones (₹12,000 each) via a courier service (prepaid, door-to-door) to a buyer in Chennai. Invoice value = ₹5,90,400 (5 × ₹59,040 = ₹59,040 × 5 = no, let's say invoice value ₹70,800 incl. GST). Is EWB required? If yes, what is the validity?

Exercise 2: Kiran Sharma takes a laptop (worth ₹35,000 incl. GST) from the Hyderabad office to a client meeting in Pune by flight. Is EWB required?

Key Terms

Module Summary

• E-way Bill is mandatory for goods movement when consignment value > ₹50,000 (whether by road, rail, air, or ship)
• Any of three parties — supplier, recipient, or transporter — can generate the EWB
• Part A has supply and goods details; Part B has vehicle/transport details
• Validity depends on distance: 1 day for ≤200 km, up to 15 days for >1,000 km; ODC gets double validity
• EWB can be cancelled within 24 hours if goods not moved; validity can be extended by transporter before expiry
• Penalty for non-compliance: higher of 100% of tax or ₹10,000 — plus risk of vehicle and goods detention
• For Sunrise Retail: every consignment above ₹50,000 (all their B2B sales) needs an EWB before dispatch

Checklist — what you should now be able to do:

• Determine whether any given goods movement requires an E-way Bill using the decision flow
• Fill Part A and Part B on the EWB portal for a Sunrise Retail dispatch with correct HSN, value, and distance
• Calculate EWB validity for any distance band (normal and ODC cargo)
• Update Part B when a vehicle changes mid-journey (transshipment)
• Know the cancellation window (24 hours) and the extension process before expiry

Quick Quiz

1. An E-way Bill is mandatory when consignment value exceeds:

• a) ₹10,000
• b) ₹25,000
• c) ₹50,000
• d) ₹1,00,000

2. Sunrise Retail dispatches phones worth ₹3,89,400 to Bangalore (570 km). The EWB validity is:

• a) 1 day
• b) 3 days
• c) 5 days
• d) 7 days

3. If the truck breaks down and goods cannot reach the destination within EWB validity, the correct action is:

• a) Generate a new EWB from scratch
• b) Cancel the old EWB and issue a new one
• c) The transporter extends the existing EWB before it expires
• d) Do nothing — validity automatically extends for breakdowns

4. Which party is responsible if neither supplier nor recipient generates the EWB?

• a) The GST officer at the nearest checkpoint
• b) The transporter
• c) The GST portal generates it automatically
• d) The buyer is always responsible

5. Sunrise Retail's goods are detained at a checkpoint because the EWB expired during transit. The penalty is:

• a) ₹5,000 flat
• b) ₹10,000 flat
• c) Higher of 100% of tax applicable OR ₹10,000
• d) 18% of the consignment value