What is E-Way Bill in India 2025: Rules, Requirements, and Generation

Under India’s GST system, an E-Way Bill is required for transporting goods worth over ₹50,000 between cities or states. It applies to both inter-state and intra-state movement, and must be generated by the supplier, transporter, or recipient for their shipments. In this blog, we will explore the meaning of an E-Way Bill, its requirements, responsible parties, and the process to obtain one, helping you avoid penalties and maintain smooth deliveries. Read on to know more!

What is an E-Way Bill and How Does It Matter?

An E-Way Bill in GST is an electronic document that confirms the legal transfer of goods valued over ₹50,000 within or between Indian states. It simplifies business processes by replacing multiple documents with a single, digital permit generated on the official E-Way Bill Portal. Once created, a unique E-Way Bill Number (EBN) is issued and shared with the supplier, transporter, and recipient for tracking.

The E-Way Bill system:

• Improves Tax Compliance: Reduces tax evasion by making supply chains traceable and tax-compliant.
• Increases Efficiency: Speeds up transportation by standardising digital permits.
• Encourages Digital Record-Keeping: Simplifies GST reports and audits, and strengthens documentation for loan applications.

Also Read: Tax Exemption Its Various Categories

When Should an E-Way Bill be Issued?

An E-Way Bill must be generated before goods are moved. It is mandatory in the following cases:

Mandatory Scenarios:

• Required for all shipments over ₹50,000, both inter-state and intra-state.
• If businesses are transporting products and require compliance, unregistered individuals may also create one.
• If the consignor/consignee hasn’t generated the bill, the transporter must generate it based on the invoice/challan provided.
• Mandatory for certain items, such as handicrafts, regardless of value.

Optional Scenarios:

• A registered person can generate an E-Way Bill for consignments below ₹50,000 to maintain consistent digital records.
• An unregistered person may generate an E-Way Bill voluntarily for smoother transit.

Also Read: The Impact of GST Reforms on Consumer Durable Goods: What to Expect

How Does the E-Way Bill Work?

Under the GST regime, you need to generate an E-Way bill so that the products can be verified during transit and move without any delays at the checkpoints. In case of goods being changed on the way, the new vehicle information should be added on the portal. The E-Way bill makes compliance easy, with less paperwork and faster transportation in the country.

How to Generate an E-Way Bill?

Here’s how you generate the E-Way Bill via the official portal:

1. Login to the official E-Way Bill Portal using your GST credentials.
2. Select ‘Generate New’ from the E-Way Bill menu.
3. Enter shipment details: GSTIN of supplier and recipient, invoice number, date, value, and product details.
4. Provide transporter information such as name, contact number, transporter ID, vehicle number, transport mode etc.
5. Submit the form for validation.
6. Receive the E-Way Bill Number (EBN).
7. Transport the goods with the E-Way Bill (printed or digital).

SMS e-Way Bill Generation on Mobile

Eligibility:

• Available only for GST-registered taxpayers.
• Your mobile number must be registered on the E-Way Bill portal.
• Not available for unregistered persons or exempt goods.

Steps to Generate:

1. Register your mobile number on the E-Way Bill portal.
2. Prepare the SMS: Include details like GSTIN, invoice number, HSN code, value of goods, and vehicle number.
3. Send the SMS in the state-specific format to the designated number.
4. Receive confirmation: A reply will contain the unique 12-digit EBN if details are correct.

Key Rules and Thresholds of E-Way Bill

For most intrastate and interstate transactions, the typical barrier is ₹50,000. Certain exempt items such as fresh fruits, vegetables, milk, LPG, and non-motorised conveyance transit, are examples of special circumstances or exemptions.

E-Way Bill Rules and Limits Based on States

To check the current E-Way Bill threshold applicable in your state, follow these steps:

1. Visit the official E-Way Bill portal and navigate to the ‘Help’ section, then click on ‘Notifications’.
2. Select your state from the list to view the latest intra-state requirements.
3. State GST Department’s website: Visit your State’s GST Department site for the most up-to-date information on thresholds and exemptions.

Documents Required

• Basic Information:
  • GSTIN of Supplier and Recipient
  • Date of Generation
  • Invoice/Bill of Supply Number
  • HSN Code
  • Value of Goods
• Transportation Information:
  • Type of Transport (road, rail, air, ship)
  • Transporter ID or Vehicle Number
  • Transport Document Number and Date (for rail, air, or ship)
• Additional Information:
  • Distance Travelled
  • E-Way Bill Validity Extension (if applicable)
  • Generation Mode (Online, SMS, or GST Suvidha Provider)

Validity of the E-Way Bill

Here is how long an E-Way Bill is valid based on the distance:

Type of Conveyance	Distance	Validity
Standard Goods	Less than 200 km	1 day
	200 km and above	1 day for every 200 km or portion thereof
Over-dimensional Cargo	Less than 20 km	1 day
	20 km and above	1 extra day for every 20 km or portion thereof

Penalties Involved in E-Way Bill

Failure to generate or an incorrect E-Way Bill can have major legal and operational ramifications. Here’s the breakdown:

• Monetary Fine: ₹10,000 or the tax amount avoided, whichever is higher. Penalty can increase for repeated violations.
• Goods and Vehicle Detention: Goods and vehicles may be stopped or confiscated, causing delays and cash flow disruptions.
• Interest on Tax Liabilities: Unpaid or underpaid GST attracts interest, adding to financial burdens.
• Impact on Business Reputation: GSTN systems record repeated violations. These can harm relationships with partners, transporters, and financiers, affecting reputation and financing terms.
• Legal Consequences: Persistent noncompliance may result in GST prosecution, with penalties beyond monetary fines.

Also Read: A Guide to Basic Concepts of Income Tax

E-Way Bill 2.0 Portal: A Game-Changer for Businesses

The E-Way Bill 2.0 portal, launched on 1st July 2025, enhances the E-Way Bill system, making it faster, safer, and more user-friendly. Available at https://ewaybill2.gst.gov.in, it works in parallel with E-Way Bill 1.0 to ensure continuous service even during downtime.

• Real-Time Synchronisation: Data from both portals is mirrored instantly for seamless operations.
• Cross-Platform Functionality: Users can generate, update, print, and cancel E-Way Bills on both portals.
• API Access: APIs are available for smooth integration with logistics systems.

E-Way Bill 2.0 offers a more efficient and reliable system, streamlining logistics and tax compliance.

Important Features of the 2.0 Portal

Numerous new features were introduced by E-Way Bill 2.0 to simplify, expedite, and reduce the likelihood of errors in compliance:

• Consolidated E-Way Bill Generation: Create multiple bills at once to save time and avoid repetitive data entry.
• Cross-Platform Functionality: Seamless experience across ERP, mobile app, or web interface. Bills can be created, updated, and managed from any platform.
• Change Transporter Details: Easily update transporter details without restarting the bill.
• Part-A Based Bill Creation: Create bills with Part-A details and update Part-B later for flexibility.
• Dual-System Operation: Both E-Way Bill 1.0 and 2.0 run in parallel, ensuring continuity during outages.
• Extension of Validity: Easily extend the validity if goods are delayed en route.
• API Integration: APIs allow businesses to integrate E-Way Bill functions with internal systems and logistics software.

To Conclude

The E-Way Bill system is now a strong regulatory tool that shows how reputable, significant, and reliable your business is. The introduction of E-Way Bill 2.0 has given companies the chance to improve logistics, lower mistakes, and obtain better compliance and operational efficiency over products in transit. Thus, for business owners, the function of an E-Way Bill goes beyond serving as documentation for seamless operation.

FAQs

Do I need an E-Way Bill for goods that are under ₹50,000?

E-Way Bills are typically required for products valued at ₹50,000 or above. However, you must always check your state’s GST notifications.

Can I cancel or change an E-Way Bill once it has been generated?

Yes, you can cancel an E-Way Bill within 24 hours of its creation if the products have not been carried. You cannot, however, modify the E-Way Bill. If any details need to be corrected, the bill must be cancelled and re-generated.

How do E-Way Bills affect loan approvals?

Lenders sometimes accept E-Way Bill data as proof of company operations. Consistent compliance displays dependability, operational efficiency, and GST adherence, all of which may help enhance your loan application and increase chances of approval.

Can I add two invoices in one E-Way bill?

No, you cannot generate a single E-Way Bill for two invoices. Each consignment requires its own bill. However, if multiple consignments are transported in the same vehicle, you can create a Consolidated E-Way Bill that includes the EBN of all the consignments.