BAJAJ BROKING
August 06, 2025
7 mins read
If you are a business owner or involved in the supply chain in India, you’ve likely come across the E-Way Bill system. Introduced under the Goods and Services Tax (GST) regime, the E-Way Bill is an electronic document required for the movement of goods. It serves as proof of the supply and helps tax authorities monitor and verify transport compliance. Whether you transport goods by road, rail, air or sea, this bill ensures transparency and reduces tax evasion. Understanding the system is essential if you regularly move goods over a certain value or distance across states or even within your own state.
Before you start transporting goods, knowing what the E-Way Bill is and why it’s required is essential. This document ensures every movement of goods is traceable and accountable under GST laws.
Here are some key points to understand:
An E-Way Bill is a legal document required under the GST regime for the transport of goods worth more than ₹50,000.
It must be generated electronically on the GST portal before the goods are transported.
Whether goods are transported by road, rail, air, or water, the bill is required.
It includes information like invoice number, GSTIN, transporter ID, and vehicle number.
The bill remains valid for a specific duration based on the total distance the goods need to travel.
For some states, the E-Way Bill is mandatory even for movement within the state, while it is always required for inter-state transactions.
The bill must be shared with the transporter or driver who carries the goods physically or digitally.
Understanding these basics helps you remain compliant and avoid penalties during inspections.
The E-Way Bill system aims to promote structured and accountable logistics while keeping tax administration seamless. It helps ensure that the movement of goods remains transparent, efficient and traceable across India.
Below are some of its primary purposes:
It allows authorities to trace goods in real time during transit to prevent tax leakage.
It ensures that each transaction is supported by proper documentation, fostering compliance.
Helps you automate and digitise transport processes, reducing the paperwork burden.
By maintaining an electronic trail, it prevents unauthorised transport of goods.
If you are transporting goods, there are specific situations when the E-Way Bill becomes mandatory or optional. Being aware of these scenarios helps you avoid compliance issues during transit.
Certain transport activities require an E-Way Bill without exception:
Goods value exceeds ₹50,000: Whether moving between states or within one, if your invoice value crosses this limit, the bill is mandatory.
Inter-state movement of goods: The bill must be generated even if the value is below ₹50,000 for specific goods notified under GST.
Supply without consideration: If you are transferring goods for free or samples, the rule still applies when the value crosses the threshold.
E-commerce shipments: If you’re sending goods sold via online platforms, you or your delivery partner must generate an E-Way Bill.
There are situations where the bill can be generated even if not mandated:
Goods value is under ₹50,000: You can voluntarily generate the bill for better record keeping or transport tracking.
Job work transfers: When sending goods to job workers, you may choose to generate the bill even if not required.
Return shipments: When returning goods, some businesses opt to issue an E-Way Bill voluntarily to keep audit records intact.
Special business policies: Some companies follow internal policies that require the E-Way Bill even if exemptions apply.
If you are responsible for the movement of goods, you are also responsible for generating the E-Way Bill. This may vary depending on whether you are the supplier, recipient, or transporter. For example, if you are a registered supplier and the value of goods being transported exceeds ₹50,000, it becomes your responsibility. In some cases, if the supplier is unregistered, and the recipient is registered, the onus shifts to the recipient. Likewise, transporters must generate the bill if neither party has done so but the consignment still qualifies.
While the E-Way Bill is necessary in most cases, there are exceptions. If you’re dealing with exempted goods or specific types of transactions, you might not be required to generate one.
Fresh fruits and vegetables: Items like bananas, tomatoes, and onions are exempt from needing an E-Way Bill.
Live animals and meat: Transportation of livestock, fresh fish, and meat is exempt under current rules.
Newspapers and books: Printed material such as books, journals, and newspapers are also excluded.
LPG for domestic use: Transport of liquefied petroleum gas supplied for household use does not require a bill.
Goods moved by non-motorised transport: If you’re using a handcart or bicycle, you are not required to generate an E-Way Bill.
Transportation under customs supervision: Customs-bonded transport operations are exempt since the movement is already being monitored.
Goods moved within a notified area: Movements within defined zones in a city or industrial estate may not need a bill as per state notifications.
Government supply without consideration: Goods sent without consideration by government entities in certain cases are exempt.
States may impose additional conditions or limits for E-Way Bill generation, beyond the national guidelines. Knowing these rules is important when you’re transporting goods within or across states.
Some states require E-Way Bills for goods below ₹50,000
Others may increase the limit to ₹1,00,000 or beyond
Specific categories of goods may have separate limits
Unregistered buyers may trigger different limits
States may mandate bills even for job work
Time limits may differ slightly from central rules
Rural zones may have relaxed norms
Some states offer bulk generation options for manufacturers
Invoice number and date
Consignor and consignee GSTIN
HSN code of goods
Taxable value and tax rate
Mode of transport (road, rail, air, ship)
Vehicle number if by road
Transporter ID or name
Distance in kilometres to destination
Reason for transportation
Document type (invoice, bill of supply, etc.)
Delivery challan details if applicable
Signature of authorised person
You might not be required to generate an E-Way Bill in specific cases. These include when goods fall under exempt categories or when being transported in a manner not covered by the rules. Government transport for relief work, intra-state movement within a short distance, or goods carried by a courier service under threshold value often qualify. Additionally, transportation of goods through non-motorised vehicles and under customs bond also falls outside the requirement. Being aware of these scenarios ensures you remain compliant without over-generating documents.
The E-Way Bill has a validity period that depends on the distance goods need to travel. Once this period ends, the bill must either be renewed or the movement halted. Timely planning ensures compliance.
Up to 100 km – 1 day
101 to 300 km – 3 days
301 to 500 km – 5 days
501 to 1,000 km – 10 days
Above 1,000 km – 15 days
Must apply before the expiry of the bill
Justify reasons like vehicle breakdown or natural disruption
Must be updated through the GST portal
Available only to the person who generated the original bill
Understanding the E-Way Bill system is crucial if you’re involved in logistics or goods movement under GST. This document helps the government track goods and ensures tax compliance, but it also helps you maintain proper business records. Familiarity with the rules, exemptions, and state-level variations can help you avoid penalties and manage operations smoothly. Whether you're sending goods across states or simply moving products to another warehouse within your city, knowing when and how to issue an E-Way Bill makes all the difference in staying compliant and efficient.
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The primary purpose of an E-Way Bill is to track the movement of goods under the Goods and Services Tax (GST) regime. It helps ensure that goods transported from one place to another comply with tax regulations. It reduces tax evasion, standardises transport documentation, and enhances accountability in supply chain operations.
Any registered person causing the movement of goods valued over ₹50,000 must generate an E-Way Bill. This includes the supplier, recipient, or even the transporter, depending on the transaction. In some cases, unregistered suppliers may be exempt, but the recipient will still have the responsibility if registered under GST.
No, it is not required for all goods. Goods valued below ₹50,000 or exempt categories such as fresh produce, newspapers, and LPG for domestic use are exceptions. However, for most inter-state and many intra-state movements involving taxable goods, the E-Way Bill is mandatory under GST guidelines.
Once generated, the E-Way Bill cannot be modified. However, you can cancel it within 24 hours of generation if an error occurs or if the goods were not transported. You must then generate a new bill with the corrected information. Only the party that created the bill can cancel it.
The validity period depends on the distance the goods are expected to travel. For example, a journey up to 100 km is valid for one day. Longer distances are allotted additional days as per GST norms. You must ensure the bill is active throughout the journey to remain compliant.
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