E-way bill: when it is needed, validity and process
An e-way bill is an electronic document required to move goods worth more than ₹50,000 under GST. It is generated on the e-way bill portal before movement.
Short answer
An e-way bill is an electronic document generated on the government's e-way bill portal for the movement of goods, under rule 138 of the CGST Rules, 2017. It is generally required when the value of a consignment exceeds ₹50,000, whether the movement is for supply, return or other reasons. It records the supplier, recipient, goods and vehicle details.
- Rule
- Rule 138, CGST Rules 2017
- Threshold
- Consignment value above ₹50,000
- Validity
- 1 day per 200 km for normal cargo
- Portal
- ewaybillgst.gov.in
How the e-way bill works
Part A of the e-way bill captures invoice details, the recipient's GSTIN, place of delivery, value and HSN code. Part B captures the transport details, such as vehicle number or transporter document. Once both parts are filled, an e-way bill number is generated and must accompany the goods. For taxpayers covered by e-invoicing, Part A can be auto-populated from the e-invoice.
Validity depends on distance: one day for every 200 km or part for normal cargo, and one day for every 20 km for over-dimensional cargo. Validity can be extended before or shortly after expiry in specified circumstances.
Who generates it and exceptions
The registered supplier, recipient or transporter can generate the e-way bill. Some movements are exempt, such as goods transported by non-motorised conveyance, certain exempt goods, and goods moving within specified short distances to a transporter's place, though states may notify their own rules for intra-state movement. Officers can intercept vehicles and verify documents, and moving goods without a valid e-way bill can lead to detention and penalties.
Why it matters for startups
D2C brands, manufacturers and distributors moving stock between warehouses need e-way bills even for branch transfers above the threshold. Integrate e-way bill generation with your invoicing or logistics software, train dispatch staff, and keep vehicle numbers updated. Penalties and detention of goods can disrupt delivery commitments.
Related services
Sources
Written by the Refogo Editorial Team from the official sources above and checked on 2026-10-31. Laws, rates and due dates change, and authorities often extend deadlines, so confirm your own case with a qualified professional. This is general information, not legal or tax advice. Read our editorial policy or report an error to support@refogo.com.
Common questions
Is an e-way bill needed for services?
No. E-way bills apply only to the movement of goods.
Is an e-way bill required below ₹50,000?
Generally not, but some states have specific rules for certain goods or intra-state movements, and certain movements such as job work or handicrafts may require it regardless of value.
Can an e-way bill be cancelled?
Yes, within 24 hours of generation if the goods have not been moved or the details are wrong, provided it has not been verified in transit.