What is E way Bill? - How to Generate and Cancel

For every business, transporting goods from one place to another is not an easy task. It involves various formalities and documentation to be completed. It also requires you to check the transport modes and billing. Among these, there is one important document that you should never miss. It is the E-way bill.

This was introduced under the GST system. The aim was to help with the tracking of the goods' movements and ensure transparency. For every business person, having an E-way Bill is essential for smooth and hassle-free deliveries across states.

But the question is what is E-way bill? Well, if you are also looking for an answer to the same, then read this guide. Explore everything you need starting from what is it and why you need it here.

What is E-Way Bill?

An eWay Bill (Electronic Way Bill) is a mandatory electronic document under India’s Goods and Services Tax (GST) system for the movement of goods valued over INR 50,000. This should be a single invoice, bill, or challan for delivery. It must be generated before transporting goods either within a state or across state borders.

The eWay Bill contains key details such as the GSTIN of the supplier and recipient, invoice number, value of goods, HSN code, and transporter information. Generated online via the official portal (ewaybillgst.gov.in), the eWay Bill assigns a unique eWay Bill Number (EBN) that must accompany the goods during transit.

This system ensures transparency, helps track goods movement, and prevents tax evasion. Also, it plays a crucial role in streamlining logistics and enforcing GST compliance across India.

Contents of E-Way Bill

You know what an e-Waybill is. For bill values exceeding INR 50,000, that information must be furnished before the commencement of goods movement. The eWay Bill facilitates tracking and compliance under GST and must accompany the goods during transit.

For records, various details are required. For ease, the contents of an eWay Bill are divided into two parts: Part A and Part B.

1. Part A

It includes details about the goods and the parties involved in the transaction:

• Name, address, and GSTIN of the supplier (consignor)

• Name, address, and GSTIN of the recipient (consignee)

• Invoice or document number and date related to the goods being transported

• Description of the goods, including quantity and unit of measurement

• Value of the goods

• HSN code (Harmonized System of Nomenclature) of the goods

• Reason for transportation (e.g., supply, export, job work)

• Place of delivery (PIN code)

• Transport document number (if applicable, such as goods receipt or airway bill)

2. Part B 

It contains transporter details:

• Transporter ID

• Vehicle number(s) used for transporting the goods

All these details mentioned in the bill allow the authorities to know the nature of goods and the linked details. This helps with transparency and avoids delays in transportation. 

When is an E-Way Bill Required?

An e-Way Bill is a mandatory electronic document required for the transportation of goods under the GST regime in India. This is known to us. But there are certain conditions when you should generate it.

So, here are the conditions when an eWay bill is required:

1. Value of Goods Exceeds INR 50,000

An e-Way Bill must be generated if the value of goods being transported exceeds INR 50,000 (including tax, cess, and other charges). This applies whether the goods are moved within a state (intra-state) or between states (inter-state).

2. Movement by Registered Persons

When goods are transported by a registered supplier, whether for supply, job work, returns, or any other reason. Even if the goods are moved for reasons other than supply, such as transfer between branches or for repairs, an e-Way Bill is required if the value exceeds INR 50,000.

3. Movement by Unregistered Persons to Registered Persons

When goods are received by a registered recipient from an unregistered supplier, an e-Way Bill must be generated if the consignment value exceeds INR 50,000.

4. Transport by Transporters

If goods are transported by a transporter on behalf of the supplier or recipient, the transporter is responsible for generating the e-Way Bill before the movement begins.

5. Specific Goods

For certain specified goods, as listed in the e-Way Bill notification, an e-Way Bill may be required irrespective of their value. Always refer to the official notifications for an updated list.

6. Transporter's Responsibility

If the supplier fails to generate the e-Way Bill, the transporter must generate it before the movement of goods commences.

While these are the situations where the E-way bill is mandatory, there are certain instances, where it is not needed. So, let us explore them as well here. 

When is an E Way Bill not Required?

In most cases, an E-way bill is necessary. But there are times when it is not. So, the question is when is the E-way bill not required? Well, the following are the cases when it is not needed:

1. Goods Valued Below INR 50,000

Transportation of goods with a total value is less than INR 50,000 does not require an e-Way Bill, except in specific cases like handicraft goods or interstate job work, where it remains mandatory.

2. Exempted Goods

Certain goods are exempt from e-Way Bill requirements regardless of value, including:

• Alcoholic liquor for human consumption

• Petroleum crude, high-speed diesel, motor spirit (petrol), natural gas, aviation turbine fuel

• Fresh milk, curd, buttermilk, lassi (without added sugar or sweeteners)

• Liquefied petroleum gas (LPG) for household and non-domestic exempted customers

• Kerosene oil under the Public Distribution System (PDS)

• Natural or cultured pearls, precious/semi-precious stones, precious metals and articles thereof

• Currency, used personal and household effects

• Coral (worked and unworked)

• Empty cargo containers

• Goods transported under customs supervision or customs seal

• Transit cargo to/from Nepal or Bhutan

• Goods are exempt from tax under various government notifications.

3. Mode of Transport

Goods transported by non-motorized conveyances such as handcarts, horse carts, or manual carts do not require an e-Way Bill.

4. Specific Transportation Routes and Conditions

There are various movement conditions when you do not need the E-way bill. These are: 

• If the movement of goods is from:

  • From customs ports, airports, air cargo complexes, and land customs stations to inland container depots (ICDs) or container freight stations (CFS) for customs clearance, and vice versa.

  • Under customs bond from ICD/CFS to customs ports or stations, or between customs stations/ports

  • Under customs supervision or bearing customs seal

  • Transit cargo to/from Nepal or Bhutan

• Goods transported by rail on behalf of the Central/State Government or local authorities

• Goods transported by defense formations under the Ministry of Defence as consignor or consignee

• Goods transported for weighment purposes within 20 km of the business premises, accompanied by a delivery challan.

5. Other Exemptions

In addition to the above exemption, there are certain other ones which include:

• Movement of goods within a specified short distance (varies by state, often less than 10 or 20 km)

• Goods moved under no supply as per Schedule III of the CGST Act

• Goods exempted under notifications issued by the government.

Till now, you know what an eway bill is and when you need it. But how can you generate the e-way bill? Well, let us explore the stepwise process in the section here.

Methods to Generate E-way Bill

Generating an e-Way Bill can be done through multiple convenient methods, allowing taxpayers and transporters to choose as per their ease and volume of transactions. The primary ways to generate an e-Way Bill are:

• Web-Based System: The most common method where users log in to the official e-Way Bill portal, enter required details such as supplier and recipient GSTIN, invoice number, goods description, transporter details, and then generate the e-Way Bill online.

• SMS-Based Generation: Registered users can generate an e-Way Bill by sending specific formatted SMS containing transaction details to designated numbers. This method suits users without easy internet access.

• Mobile App: An Android app is available for generating e-Way Bills on the go. Users must register their mobile device’s IMEI on the portal before use.

• Bulk Generation: For businesses handling multiple consignments, a bulk upload facility using JSON files is available on the portal, enabling simultaneous creation of many e-Way Bills.

• API Integration: Large taxpayers with automated invoicing systems can integrate their software with the e-Way Bill system via APIs for seamless, real-time bill generation without manual entry.

These methods provide flexibility and scalability for different business needs, ensuring compliance with GST transportation rules.

Documents Required to Generate E-Way Bill

To generate an e-Way Bill, certain key documents and details are required, depending on the mode of transport and the nature of the goods movement. The essential documents include:

Tax Invoice, Bill of Supply, or Delivery Challan: This document must relate to the goods being transported and contain details such as invoice number, date, value of goods, and HSN code. It serves as proof of the transaction or movement.

Transporter Details:

• For road transport: Transporter ID and vehicle number of the conveyance carrying the goods.

• For rail, air, or ship transport: Transporter ID along with the transport document number and date (such as railway receipt, airway bill, or bill of lading).

Consignor and Consignee Information: GSTIN, name, and address of the supplier and recipient, along with place of dispatch and delivery (PIN codes).

Reason for Transportation: This could be supply, job work, return, export, import, or other valid reasons.

These documents and details are entered into the e-Way Bill portal in two parts:

• Part A: Contains details about the goods, consignor, consignee, invoice, and reason for transportation.

• Part B: Contains transporter and vehicle details, mandatory if goods are transported beyond 50 km.

The transporter or consignor must carry the e-Way Bill (physical or digital copy) during transit for verification.

Once you have all these documents with you, the process of generation can be started. But how to create an E way bill? Well, let us explore step-wise process here.

How to Generate E Way Bill?

Having the right set of documents is the starting point for generating an eWay bill. Once you have that, you can start the process in no time. The steps that you must follow to generate the same are listed here:

Step 1: Log in to the e-Way Bill Portal

Go to the official portal at ewaybillgst.gov.in. Enter your registered username, password, and captcha code, then click Login to access your dashboard.

Step 2: Select ‘Generate New’

Now, you would need to find and click ‘Generate New.’ It is under the E-Way Bill section to open the e-Way Bill creation form.

Step 3: Enter Transaction Details

Choose Transaction Type:

• Outward if you are the supplier.

• Inward if you are the recipient.

Select the applicable sub-type based on your transaction. Enter the document (invoice, challan, etc.) details like type, number, and date.

Step 4: Provide Consignor and Consignee Details

Enter the GSTIN, name, and address of the consignee (recipient) and consignor (supplier). Next, fill in the place of dispatch and place of delivery PIN codes.

Step 5: Fill in Goods Details

Here, you would need to add the product name, description, and HSN code. Ensure that you enter quantity, unit of measurement, value, and applicable tax rates (CGST, SGST, IGST).

Step 6: Enter Transporter Details

Select the mode of transport (road, rail, air, ship). You must clearly enter the transporter ID and vehicle number (for road transport) or transport document number and date (for other modes). The total distance, not accurate but approximate must be mentioned as well. 

Step 7: Submit and Generate E-Way Bill

Review all entered details carefully. Once done, you can submit the bill. It will now get validated and you will generate the e-Way Bill. On successful submission, a unique 12-digit e-Way Bill Number (EBN) and a QR code are generated.

Step 8: Print or Save the E-Way Bill

Print a physical copy or save the digital e-Way Bill.

The e-Way Bill goes with the goods during transit as proof of compliance. If there is a change in the vehicle number or transporter details, you can update these details once the bill is generated.

One of the most important things that you should remember here is that if you make any mistake, you cannot edit it. So, you would actually need to delete and cancel it to make a new one. Also, multiple invoices for the same consignor and consignee require separate e-Way bills; they cannot be combined. 

How to Cancel the E way Bill?

How to make an E-way bill? Well, you now know this. But if there is any minor change needed, then you would need to cancel the existing one and generate a new eWay bill. But before that, here are the conditions under which you can cancel the eWay bill:

• Once you generate the eWay bill, you have 24 hours for easy cancellation.

• If the transportation is not in line with what is there in the bill.

• Cancellation can be done if there is an error in the e-Way Bill or if the consignment is not moving.

• After 24 hours and up to 72 hours, the recipient (consignee) can cancel the e-Way Bill if the supplier fails to do so.

• Cancellation is not possible after 72 hours or if the e-Way Bill has been verified by an officer.

If one of these conditions is fulfilled, then the bill can be cancelled by:

• The generator of the e-Way Bill (usually the consignor or supplier) has the primary right to cancel.

• If the supplier does not cancel within 24 hours, the recipient or transporter may cancel within the next 48 hours (up to 72 hours from generation).

Now, that you know this, here are the steps that you would need to follow to cancel an existing eWay bill:

1. Go to ewaybillgst.gov.in using your credentials.

2. Find ‘Cancel’ option under the E-Way Bill menu.

3. Enter the 12-digit e-Way Bill Number you want to cancel.

4. Click Go.

5. The e-Way Bill details will appear. Select a valid reason for cancellation (e.g., goods not transported, incorrect details).

6. Click Submit to process the cancellation.

7. Check for the confirmation. 

8. You will find that the successful cancellation is done. 

9. Go to ‘Cancelled E-Way Bills’ section. Verify, and you are done.

Once cancelled, it becomes invalid and cannot be used for transportation.

This is possible when e-Way bill is not older than 10 days. But if it is, then you would need to follow a separate set of steps.

How to Cancel the E-way Bill after 10 Days?

An e-Way Bill cannot be cancelled after 72 hours from the time of its generation as per GST rules. The official time limits are:

• Within 24 hours: The consignor (supplier) can cancel the e-Way Bill if the goods have not been transported or if there is an error.

• Between 24 and 72 hours: Say, the consignor fails to cancel within 24 hours. Now, the consignee (recipient) can cancel the e-Way Bill within the next 48 hours (i.e., up to 72 hours from generation).

• After 72 hours: Cancellation is not allowed on the e-Way Bill portal. There is no provision to cancel an e-Way Bill after this period, even if goods are not transported or lost.

If you need to address issues such as theft or non-transportation after 10 days, the only option is to generate a fresh e-Way Bill for the movement of goods to the buyer. The original e-Way Bill remains valid till it is verified, and so cannot be deleted at that time. 

How to Make an E way Bill via SMS?

To generate an e-Way Bill via SMS, follow these steps:

1. Register Mobile Number: First, register your mobile number on the e-Way Bill portal under the ‘Registration’ menu, selecting ‘For SMS’. You will receive an OTP to verify and activate SMS-based services.

2. Prepare SMS Format: The SMS must be formatted precisely as follows: EWBG TranType RecGSTIN DelPinCode InvNo InvDate TotalValue HSNCode ApprDist Vehicle

   • EWBG: Fixed keyword for e-Way Bill generation

   • TranType: Transaction type code (e.g., OSUP for outward supply)

   • RecGSTIN: Recipient GSTIN

   • DelPinCode: Destination PIN code

   • InvNo: Invoice number

   • InvDate: Invoice date (DD/MM/YYYY)

   • TotalValue: Total invoice value in Rs.

   • HSNCode: HSN code of the first item

   • ApprDist: Approximate distance in km

   • Vehicle: Vehicle number

3. Send SMS: Send this formatted message to 77382 99899 (or 97319 79899 as per regional instructions). For example: EWBG OSUP 29AABPX0892K1ZK 560021 1005 27/03/2025 130000.00 7215 98 KA42PB2879

4. Receive Confirmation: If successful, you will get an instant reply confirming the e-Way Bill number, date, and validity period.

This method is especially useful for small businesses or urgent situations where online access is unavailable.

Validity of E-Way Bill

When you transport goods, the e-Way Bill you generate is valid only for a certain period. This validity depends mainly on how far the goods will travel and the mode of transport. The validity starts from the time you enter the vehicle or transport details in the e-Way Bill system. The first day ends at midnight of the next day.

The further details of the validity are as follows:

• For road transport, the e-Way Bill is valid for 1 day for every 200 kilometers or part of it. For example, if the distance is 350 km, the e-Way Bill will be valid for 2 days.

• For over-dimensional goods (large or heavy items), the validity is 1 day for up to 20 km, plus 1 extra day for every 20 km after that.

• For goods transported by air, the e-Way Bill is valid for 1 day only.

• For goods transported by water, the e-Way Bill is valid for 15 days.

Timeline to Generate E-Way Bill

As of January 1, 2025, You can generate eWay bill within 180 days from the current date. If the invoice or the document date is beyond this at the time of generation, those will be rejected. This rule ensures that e-Way Bills are used for active and recent transactions. This ensures compliance with GST rules.

Pros and Cons of E-Way Bill

There is no doubt that e-way bills are quite helpful. But using it has both pros and cons. So, let us quickly find the pros and cons over here.

Pros of the e-Way Bill System

• Reduced need for physical document work, which is usually time-consuming.

• Speeds up cross-border movement of goods.

• Enhances transparency and tracking of goods.

• Helps in reducing tax evasion and fraud.

• Simplifies compliance with bulk generation options.

Cons of the e-Way Bill System

• Technical issues can create problems in the process.

• Dependence on reliable internet connectivity.

• Increased compliance burden for small businesses.

• Limited window for extending validity, causing delays.

• Penalties for non-compliance or errors are heavy.

Conclusion

For any business, transporting goods is not an easy task. With documents and processes, it becomes time-consuming. Also, just one mistake can lead to delays and losses. But that is no longer the case. The E-Way bill has changed the process with transparency and compliance.

Yes, there are still some challenges left, but those are not the major ones. Overall, the e-way bill has helped businesses to ensure better tax transparency and faster deliveries.

In short, the e-Way Bill is more than just a form—it's a step toward smoother business operations in a growing digital India.

FAQs

Q. Is the e-Way Bill limit Rs.1,00,000?

The general e-Way Bill threshold for interstate movement is Rs.50,000. However, some states have set higher limits for intrastate movement, such as Rs.1,00,000 or more.

Q. Can the e-Way Bill be extended?

Yes, this is possible. The authorities can do this if satisfied and under certain approved conditions. But remember, this is limited, and so you need to be sure while generating one.

Q. Is e-Way Bill required for goods valued below Rs.50,000?

No, generally, if the consignment's value is below Rs.50,000, an e-Way Bill is not mandatory unless specified by the state or specific circumstances.