GST compliance
What is an e-way bill and when do you need one?
An e-way bill is an electronic document you carry when goods move from one place to another. If you send or receive goods above a certain value, you usually need one. Here is how it works in plain words.
What an e-way bill is
An e-way bill (electronic way bill) is generated on the official e-way bill portal before goods are transported. It records what is being moved, by whom, from where to where and by which vehicle. The transporter carries it, on paper or on a phone, during the journey.
When do you need one?
As a general rule, you need an e-way bill when the value of the goods in a single consignment is more than ₹50,000. Some states set their own limits for movement within the state, and some goods have special rules, so check your state’s threshold.
- Moving goods for a sale, a transfer between your own branches, or a return.
- Both inter-state and, above the state limit, intra-state movement.
- Whether you move the goods yourself or hand them to a transporter.
Who generates it?
The supplier usually generates the e-way bill. If the supplier does not, the recipient can; and if goods are handed to a transporter, the transporter can generate it from the details the supplier provides.
How long is an e-way bill valid?
Validity depends on the distance the goods travel. As a broad guide, it is one day for every 200 km (or part of it) for regular cargo, counted from the time the bill is generated. If the journey is longer, the validity can be extended.
What you need to generate one
- The invoice, bill of supply or delivery challan for the goods.
- GSTIN of the supplier and recipient (where registered).
- HSN code, quantity, value and tax of the goods.
- Transporter ID or the vehicle number.
Generating e-way bills from your invoices
Typing each e-way bill into the portal is slow if you despatch many consignments. Billing software can prepare the e-way bill data straight from the invoices you already raised, so you only upload and confirm.
FinBill can create e-way bill JSON from your bills, including in bulk for many invoices at once, so you spend less time on the portal.
GST rules and due dates change from time to time. Use this as a plain-language starting point and confirm the current rules with your CA or on the official GST portal before you file.
Frequently asked questions
Is an e-way bill needed for every bill?+
No. It is generally needed when a single consignment of goods is worth more than ₹50,000, with some state and goods-specific exceptions.
Who carries the e-way bill?+
The person moving the goods, usually the transporter. It can be shown on paper or on a phone during the journey.
What if the vehicle changes mid-way?+
The transporter updates the vehicle details (Part B) on the e-way bill portal so the document stays valid for the rest of the journey.