E-Way Bill Under GST — Generation, Rules, Validity and Penalty

An E-Way Bill (Electronic Way Bill) is a compliance document required for movement of goods valued above ₹50,000 (in most cases). Under the GST framework, E-Way Bills are generated on the government portal and must accompany every consignment covered by the rules. Here is the complete guide to E-Way Bill compliance in India.

When is an E-Way Bill Required?

• Movement of goods valued at more than ₹50,000 by any mode (road, rail, air, vessel)
• Applies to: taxable supplies, exempt supplies (from registered supplier), export supplies, job work
• Not required for: Movement of goods by non-motorised conveyance; goods specifically exempted (fresh vegetables, fruits, newspapers, currency, used personal/household goods, etc.)

Who Generates the E-Way Bill?

• The supplier must generate if they are GST-registered
• If the supplier is unregistered and the buyer is registered, the recipient (buyer) must generate
• The transporter must generate if the consignor/consignee fails to generate and has handed over goods for transport

E-Way Bill Components — Part A and Part B

• Part A: Consignment details — GSTIN of supplier, recipient's GSTIN, place of delivery (PIN), invoice/document number, value, HSN code, reason for transport
• Part B: Transport details — vehicle number, transporter ID. Part B is required for movement; can be filled by transporter after Part A is completed by supplier

E-Way Bill Validity

• For distance up to 200 km: 1 day
• For every additional 200 km (or part thereof): 1 additional day
• Example: Distance 500 km → Validity = 3 days (1 for first 200 + 1 for next 200 + 1 for remaining 100)
• Over-dimensional cargo: 1 day per 20 km
• Validity can be extended by the consignor/transporter before expiry

Inter-State vs Intra-State E-Way Bills

• Inter-state: E-Way Bill is mandatory for all consignments above ₹50,000 regardless of distance
• Intra-state (within Kerala): E-Way Bill is mandatory above ₹50,000 for most goods. Kerala-specific notifications may further specify distances/exemptions.

Penalty for E-Way Bill Violations

• Transporting goods without a valid E-Way Bill: Penalty of ₹10,000 or tax amount (whichever is higher)
• Goods can be seized and detained until penalty/tax is paid
• Repeated violations can lead to suspension of E-Way Bill generation rights

Conclusion

E-Way Bill compliance is a critical operational requirement for all businesses that move goods above ₹50,000 — with significant financial penalties for non-compliance. SPOTON provides GST training and compliance advisory for businesses managing logistics across Kerala and India. Contact us for expert GST compliance services.