🔹 Introduction

Movement of goods under GST is monitored through the E-Way Bill (Electronic Way Bill) system. Introduced under Rule 138 of CGST Rules, it ensures that all goods transported beyond a prescribed value are backed by valid documents. For SMEs, traders, and manufacturers, especially in regions like Ghaziabad, Noida, and Delhi, compliance with E-Way Bill rules is critical to avoid penalties, detention of goods, and disruption of supply chain.

This article provides a detailed law + practical guide to E-Way Bill compliance in 2025.

(References: Rule 138–138E of CGST Rules, Notifications & Circulars updated till 2025)

🔹 What is an E-Way Bill?

• An electronic document generated on the GST portal before the movement of goods.

• It serves as evidence that tax has been properly accounted for.

• Generated in FORM GST EWB-01 consisting of:

  • Part A: Details of consignor, consignee, invoice, value, HSN, etc.

  • Part B: Vehicle/transport details.

🔹 When is an E-Way Bill Required?

• Mandatory if: Value of goods exceeds ₹50,000 (in a single invoice/bill/delivery challan).

• Applies to:

  • Inter-state and intra-state movement of goods.

  • Supply (sale), return, transfer, job work.

  • Even for non-supply reasons (e.g., exhibitions).

⚠️ Special Cases:

• Inter-state job work: Mandatory even if value < ₹50,000.

• Handicraft goods: Mandatory irrespective of value.

🔹 Exemptions from E-Way Bill

No E-Way Bill is required for:

• Goods exempt from GST.

• Transport by non-motorized vehicles.

• Goods transported within 10 km (only Part A required).

• Specific items (e.g., fresh fruits, vegetables, milk, books).

• Transport by defense formations.

(Refer: Notification No. 12/2018-Central Tax, amended from time to time)

🔹 Step-by-Step Process to Generate E-Way Bill

📌 Step 1: Login

• Visit ewaybillgst.gov.in

• Enter GSTIN & OTP

📌 Step 2: Select ‘Generate New’

• Fill details in Part A:

  • GSTIN of supplier & recipient

  • Invoice/challan number & date

  • HSN code, goods description, value, tax

📌 Step 3: Fill Transport Details (Part B)

• Vehicle number (road)

• Transport document number (rail/air/ship)

📌 Step 4: Submit

• System generates a 12-digit E-Way Bill Number (EBN)

📌 Step 5: Share

• Print/digital copy must accompany goods during transport.

🔹 Validity of E-Way Bill

• Validity depends on distance travelled:

  • Up to 200 km: 1 day.

  • For every additional 200 km: +1 day.

⚠️ Example: A truck from Ghaziabad to Mumbai (~1,400 km) → Validity = 7 days.

• Extension: Allowed within 8 hours before/after expiry.

🔹 Common Mistakes in E-Way Bill Compliance

1. Mismatch with Invoice → Wrong HSN, value, GSTIN.

2. Expired Validity → Goods detained if validity lapses in transit.

3. Non-generation → Assuming intra-state movement doesn’t require bill.

4. Vehicle change not updated → If transshipment occurs, Part B must be updated.

🔹 Penalties for Non-Compliance

• Sec. 129 of CGST Act:

  • Goods detained.

  • Penalty = 200% of tax payable.

• Sec. 122:

  • ₹10,000 penalty or amount of tax evaded, whichever is higher.

⚠️ Example: A trader moving goods worth ₹5 lakh without E-Way Bill → Detention + Penalty ₹90,000 (18% tax × 200%).

🔹 Blocking of E-Way Bill Generation (Rule 138E)

• If taxpayer fails to file GSTR-3B for 2 months/quarters, E-Way Bill generation is blocked.

• Can be unblocked by filing pending returns or applying to jurisdictional officer.

🔹 Best Practices for Businesses

• ✅ Train staff on E-Way Bill rules.

• ✅ Always reconcile invoice vs E-Way Bill data.

• ✅ Use mobile app/SMS facility for quick generation.

• ✅ Keep buffer time for long-distance transport.

• ✅ Regularly check E-Way Bill portal for updates.

🔹 FAQs on E-Way Bill

Q1. Is E-Way Bill required for goods below ₹50,000?
➡️ Not mandatory, except for inter-state job work & handicraft goods.

Q2. Can an E-Way Bill be cancelled?
➡️ Yes, within 24 hours if goods not transported.

Q3. What if vehicle breaks down?
➡️ Update new vehicle details in Part B.

Q4. Is E-Way Bill required for services?
➡️ No, only for goods.

Q5. Can multiple invoices be clubbed in one E-Way Bill?
➡️ No, separate bill for each invoice. But consolidated E-Way Bill can be generated.

🔹 Conclusion

The E-Way Bill system is a backbone of GST compliance. Mistakes like expired validity, mismatched invoices, or failure to generate can result in heavy penalties. With proper planning and technology tools, businesses can ensure seamless compliance.

📌 Need expert help with E-Way Bill compliance, GST returns, or departmental issues?
Contact Tech-Tax Solutions – Quality, Trust & Expertise in Ghaziabad, Noida & Delhi.