What is an e-way bill and when is it required?

By the India Law Simplified editorial team · Verified against the bare Acts & official portals · Updated 2026-08-18 · ~8 min read

⚡ Quick answer

An e-way bill is an electronic document you must generate, before transport begins, for moving goods worth more than ₹50,000. It's created on the e-way bill portal (ewaybillgst.gov.in), carries a unique 12-digit e-way bill number (EBN), and is valid for a period based on distance — broadly one day per 200 km. The supplier, recipient or transporter can generate it, and the person carrying the goods must have it available during transit.

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If your business moves goods — whether to a customer, between your own warehouses, or for job work — the e-way bill is a compliance step you can't skip. Moving a consignment without a valid one can get your goods detained and attract a heavy penalty. This guide explains in plain language what an e-way bill is, exactly when it's needed, how long it stays valid, and the situations where it isn't required.

1What an e-way bill is

An e-way bill is a digital permit for the movement of goods under GST. It links the consignment (what's being moved, its value, the GST) with the transport (vehicle, transporter). It exists so tax authorities can track the movement of taxable goods and curb evasion.

It has two parts: Part A (consignment details — invoice, value, GSTIN of supplier and recipient) and Part B (transport details — vehicle number or transporter ID).

2When it's required

You generally need an e-way bill whenever goods worth more than ₹50,000 are moved:

For a sale, a stock transfer between branches, or a sales return
For both inter-state and intra-state movement (some states set different intra-state thresholds)
For sending goods for job work (required for inter-state job-work movement of ANY value)

⚠️ ImportantThe ₹50,000 is per consignment. Some states have their own intra-state rules, so check your state's threshold — but for inter-state movement above ₹50,000, an e-way bill is effectively always needed.

3Validity — how long it lasts

An e-way bill's validity depends on the distance the goods travel, calculated from when Part B is filled:

Up to 200 km: 1 day
Every additional 200 km (or part): 1 more day
For over-dimensional cargo, the distance per day is lower

💡 ExampleA trader in Delhi ships ₹2 lakh of goods to a buyer 600 km away. The e-way bill is valid for 3 days (200 km/day). If the truck breaks down and won't reach in time, the transporter can extend the e-way bill before it expires — but moving goods on an expired bill risks detention.

4When you don't need one

An e-way bill isn't required in some cases:

Consignment value of ₹50,000 or less (subject to state intra-state rules)
Goods exempt from e-way bill requirements (a notified list, e.g. certain fresh produce, LPG for households)
Transport by non-motorised conveyance
Very short distances within the same state between consignor and transporter (limited relaxations)

5Part A and Part B, and why goods get detained

An e-way bill has two halves and the second is where most enforcement problems arise.

Part A carries the invoice details — GSTINs, place of delivery, value, HSN, reason for transport. Part B carries the vehicle number. The bill is only valid for movement once Part B is filled.

A Part A generated in advance without vehicle details does not authorise movement. If the vehicle changes en route — a breakdown, a transhipment, a change of transporter — Part B must be updated before the goods move again, and failing to do so is the most common cause of detention.

⚠️ ImportantPart B is not required where the goods move under 50 km within the same state between consignor and transporter, or from transporter to consignee.

6Validity, and what happens when it lapses

Validity is computed by distance, not by a flat number of days: one day for every 200 km for ordinary cargo, and one day for every 20 km for over-dimensional cargo. A day runs to midnight of the following day, not 24 hours from generation.

Extension is possible, but only within a narrow window — from eight hours before expiry to eight hours after — and the total cannot run beyond 360 days from original generation.

Goods moving on an expired e-way bill are treated as moving without one, which is why long-haul consignments held up at a checkpoint or a weekend need the extension raised before the clock runs out rather than after.

7The consequences, and who bears them

Movement without a valid e-way bill exposes both the goods and the vehicle to detention and seizure under section 129, and the liability does not fall only on the supplier.

Where the owner comes forward, release is on payment of the applicable tax and a penalty equal to 100% of that tax; for exempt goods, the lower of 2% of value or ₹25,000. Where the owner does not come forward the penalty is higher.

The transporter is exposed independently, and the vehicle itself can be detained, which is why transporters commonly refuse to move a consignment without the bill in hand regardless of what the supplier says.

8The consignment-value test, and what goes into it

The ₹50,000 threshold is tested on consignment value, which is a defined figure rather than simply the invoice total.

It is the value declared in the invoice including the GST charged on it, but excluding the value of any exempt goods carried in the same conveyance under that invoice. Where a single vehicle carries several consignments, each is tested separately, though a consolidated e-way bill in Form EWB-02 can then be generated for the vehicle.

Some states also set their own lower thresholds for movement entirely within the state, so the ₹50,000 figure is the inter-state rule rather than a universal one.

⚠️ ImportantMovement for reasons other than supply — job work, a sales return, transfer between your own branches — still needs a bill once the value test is met, even though no sale is taking place.

Key takeaways

An e-way bill is a digital permit needed before moving goods worth over ₹50,000.
Generate it on ewaybillgst.gov.in; it has Part A (consignment) and Part B (transport).
Validity is distance-based — broadly 1 day per 200 km, extendable before expiry.
Inter-state job-work movement needs an e-way bill regardless of value.
Moving goods without a required e-way bill risks detention and penalty.

Frequently asked questions

Is an e-way bill required for goods under ₹50,000?

Generally no — the threshold is ₹50,000 per consignment. But some states mandate it for certain intra-state movements regardless, and it's required for inter-state job-work movement of any value.

How long is an e-way bill valid?

Validity is based on distance — broadly 1 day for up to 200 km, plus 1 day for every additional 200 km. You can extend it before it expires if the goods won't reach in time.

Who generates the e-way bill — buyer, seller or transporter?

Any of them can. Usually the supplier generates it; if not, the recipient or the transporter can. The key requirement is that a valid e-way bill accompanies the goods during transit.

What happens if goods move without an e-way bill?

The goods and vehicle can be detained, and a penalty applies — typically the tax due plus an equal penalty, or 2% of the value of goods (₹25,000 minimum) in some cases. Always carry a valid e-way bill.

What is the difference between Part A and Part B?

Part A carries the invoice details — GSTINs, delivery address, value, HSN. Part B carries the vehicle number, and the bill only authorises movement once it is filled. A Part A generated in advance without vehicle details does not permit the goods to move.

The vehicle broke down mid-journey — what do I do?

Update Part B with the new vehicle number before the goods move again. Transhipping to a different vehicle without updating Part B is treated as movement without a valid e-way bill, and it is among the most common causes of detention.

Can I extend an e-way bill that is about to expire?

Yes, but only within a narrow window — from eight hours before expiry to eight hours after — and the total cannot run beyond 360 days from original generation. For long-haul consignments, raise the extension before the clock runs out rather than after.

Can an e-way bill be cancelled once generated?

Yes, within 24 hours of generation, where the goods were not transported at all or were not transported as described. After 24 hours it cannot be cancelled, and it cannot be cancelled at any point once it has been verified in transit by an officer — in which case the position has to be explained rather than erased.

Do I need an e-way bill if I am not selling the goods?

Yes, once the value test is met. Movement for job work, a sales return, or a stock transfer between your own branches all require a bill even though no sale is taking place. The trigger is movement of goods, not a supply.

Is the ₹50,000 limit the same in every state?

For inter-state movement, yes. Several states set their own lower thresholds for movement entirely within the state, so check the state rule before assuming the national figure applies to a local delivery.