When is an e-way bill required? A guide for shops

When goods worth more than ₹50,000 move by vehicle, GST law expects an e-way bill — an electronic document made on the government portal before the goods leave. Without it, the goods and the vehicle can be stopped and a penalty charged. This guide explains, in plain words, when you need one, what goes into it and how long it stays valid.

The basic rule: goods worth more than ₹50,000

A registered person who moves goods of a consignment value above ₹50,000 must generate an e-way bill before the movement starts. Three points that shops often miss:

• The value includes GST. CGST, SGST, IGST and cess shown on the invoice all count. Goods worth ₹45,000 plus 18% GST make ₹53,100 — so an e-way bill is needed, even though the goods alone are below ₹50,000.
• Exempt goods on the same invoice are left out of the value.
• It is about movement, not only sales. Sending stock to your own branch or returning goods to a supplier is also movement of goods.

Needed at any value

Two cases need an e-way bill even below ₹50,000:

• Goods sent by a principal to a job worker in another state.
• Handicraft goods sent to another state by a person who is exempt from GST registration.

When you do not need one

• Goods moved by a non-motorised conveyance — a hand cart or a cycle rickshaw, for example.
• Goods listed in the annexure to rule 138, such as household LPG, kerosene sold through ration shops, postal baggage, jewellery, currency and used household goods.
• Consignments up to ₹50,000 (you may still generate one if you wish).

Part A and Part B

An e-way bill has two parts:

• Part A — the GSTINs of supplier and recipient, the place of delivery with its PIN code, the invoice or challan number and date, the value, the HSN code and the reason for transport. The supplier or the recipient fills it.
• Part B — the vehicle number for road transport (or the transport document number for rail, air or ship). The transporter fills it, or you do if it is your own vehicle.

The 50 km rule: when goods go within your state, up to 50 km, from your place of business to a transporter’s place for onward transport, Part B can be left blank for that leg.

If you issue e-invoices, Part A can be filled from the e-invoice’s IRN instead of typing it again.

How long is it valid?

Validity depends on the distance:

• Normal cargo: one day for up to 200 km, and one more day for every further 200 km or part of it. (It was 100 km a day until 31 December 2020.)
• Over-dimensional cargo: one day for every 20 km.

A “day” ends at midnight of the day after the e-way bill was generated.

If goods are delayed — a breakdown, a strike — the transporter can extend the e-way bill on the portal around the time it expires, giving the reason and the distance left.

Real situations

Mistakes, cancelling and penalties

• An e-way bill cannot be edited after it is made; only Part B (the vehicle) can be updated. If something is wrong, cancel it within 24 hours and make a new one.
• The recipient can reject it within 72 hours of its generation; if they do nothing, it counts as accepted.
• Moving taxable goods without the required documents can bring a penalty of ₹10,000 or the tax involved, whichever is more, and the goods and vehicle can be detained.
• For small clerical slips — a typing mistake in a document number, for example — a CBIC circular allows a small fixed penalty instead of detaining the goods.

Generating one, step by step

1. Sign in to the e-way bill portal (ewaybillgst.gov.in) with your GST login details.
2. Choose Generate new, and fill Part A from your invoice.
3. Fill Part B with the vehicle number, or leave it for the transporter.
4. Submit, and give the e-way bill number to the driver — on paper or on the phone.

Making several e-way bills a day? The portal accepts a JSON file for bulk generation. ApnaInventory makes this JSON from your sale bill: enter the vehicle number and distance, it checks the HSN codes, GSTINs and PIN codes first and lists anything missing, and you upload the file on the portal. A correct invoice comes first — see what must be on a GST bill. Under the composition scheme you cannot sell to other states at all; read the composition scheme guide.

FAQ

Do I need an e-way bill for goods below ₹50,000?

Not under the central rule — except for inter-state job work and handicraft goods. Your state may set a different rule for movement within the state.

Does the ₹50,000 include GST?

Yes. The consignment value includes the CGST, SGST or IGST and cess charged on the invoice.

Can I correct a mistake in an e-way bill?

Not by editing. Cancel it within 24 hours of generating it and make a fresh one. Only the vehicle details in Part B can be updated.

Who fills Part B if I use a transporter?

The transporter, usually. Within your state, for the first leg of up to 50 km to the transporter’s place, Part B is not needed.

Sources

• When an e-way bill is required, tax included in value, the 50 km rule, cancelling and rejecting — CBIC FAQs on e-way bill
• Validity changed to 200 km a day (Notification 94/2020) — E-way bill system release notes, NIC
• Job work and handicraft cases, exemptions, validity days, penalties — Electronic way bill, GST Council / CBIC

Facts checked on 2 November 2026. Rules for your state and your goods can differ — confirm with your CA.