E-way bill basics

When an e-way bill is needed

The general rule: an e-way bill is required when goods are moved and the consignment value exceeds ₹50,000. This applies whether the movement is a sale, a purchase return, a stock transfer, sending for job work, or goods sent on approval.

• Consignment value is the value on the invoice, bill of supply or delivery challan, including GST, excluding the value of exempt goods on the same document.
• States can set their own limits for movement within the state, and some do. Check your state's rule on the e-way bill portal.
• Some movements need an e-way bill even below ₹50,000, such as inter-state movement of goods for job work and of handicraft goods by those exempt from registration.
• Some goods and situations are exempt, for example many unprocessed food items, and goods moved by a non-motorised conveyance.

Part A and Part B

An e-way bill is complete only when Part B is filled. Within the same state, Part B can be skipped when goods move up to 50 km from the consignor's place to a transporter's place for further transport.

Validity

Validity depends on distance. For normal cargo, it is one day for every 200 km or part of it; for over-dimensional cargo, one day for every 20 km. Each day ends at midnight, with the first day ending at midnight of the day after generation.

Example. A consignment from Ahmedabad to Jaipur, about 660 km, gets four days: 660 ÷ 200 = 3.3, rounded up to 4. If the e-way bill is generated at 6 pm on 10 March, it is valid until midnight of 14 March.

If the truck breaks down, validity can be extended on the portal in a window around expiry, generally eight hours before and after, by giving the reason and the remaining distance.

How to generate one, step by step

1. Log in to the e-way bill portal with your GST credentials (or generate through your software's API or from an e-invoice IRN).
2. Choose outward or inward movement and the sub-type: supply, export, job work, return, and so on.
3. Enter document details, the other party's GSTIN (or "URP" for unregistered), addresses with PIN codes, items with HSN, value and tax.
4. Enter transporter ID or vehicle number in Part B.
5. Submit to get the e-way bill number (EBN). Give a copy or the number to the driver.
6. If the vehicle changes on the way, update Part B before the goods move further.

Cancellation, rejection and consequences

• Cancel within 24 hours of generation if the goods are not moved or details are wrong, provided it has not been verified on the road.
• The recipient can reject an e-way bill generated against their GSTIN within 72 hours, or before delivery, whichever is earlier.
• Blocked generation: if you have not filed GSTR-3B (or CMP-08) for two consecutive tax periods, the portal blocks you from generating e-way bills as consignor or consignee.
• No e-way bill, or an expired one, can lead to detention of the goods and vehicle and a penalty linked to the tax involved.

This is general information, not tax advice. Value limits and exemptions can change; check the e-way bill portal and cbic-gst.gov.in.

Common mistakes

• Splitting one consignment into several invoices to stay under the limit.
• Wrong PIN code, so the distance and validity are wrong.
• Generating Part A days in advance, then the vehicle leaves late and validity runs out.
• Forgetting e-way bills for purchase returns and job work, which are not sales.

How e-way bills relate to e-invoices is covered in e-way bill vs e-invoice. Movements without sale are usually covered by a delivery challan.

Where Cashflow OS fits

On plans that include it, Cashflow OS can generate an e-way bill for a synced Tally sales voucher, update the vehicle details (Part-B) and cancel it, and the e-way bill number is written back onto the Tally voucher. You can equally keep using the e-way bill portal or your TallyPrime setup. What it does is make the documents behind the movement easier: a delivery challan with your branding can be prepared from the app, and invoices and challans synced from Tally can be looked up on the phone when a transporter asks for details.