E-Way Bill
An electronic document required for transporting goods above a specified value, generated on the GST portal, that acts as proof of a valid movement of goods.
In short
- Required for moving goods worth more than ₹50,000 in most cases, with some state-specific variations.
- Generated electronically on the GST portal before the movement of goods begins.
- Goods moving without a required e-way bill can be detained and penalized.
An e-way bill is a document generated electronically on the GST portal before goods worth more than a specified threshold, currently ₹50,000 in most cases, with some state-specific variations, are moved, whether by the supplier, a transporter, or the recipient. It records details like the invoice, consignor and consignee, goods description, and vehicle used.
Goods in transit without a valid e-way bill where one was required can be detained and penalized, so it's treated as a mandatory logistics step for most B2B and larger transactions rather than an optional formality. It's generally not required for personal, non-business movement of goods or for shipments below the threshold.
Also referred to as: e-way bill, EWB.
Frequently asked questions
Is an e-way bill required for every shipment?
No, only for goods above the value threshold, currently ₹50,000 in most cases. Personal, non-business movement of goods is generally exempt too.
Who is responsible for generating the e-way bill?
Whichever party is actually causing the movement, the supplier, the recipient, or the transporter, depending on the specific transaction.
What happens if goods are found moving without a required e-way bill?
They can be detained by GST authorities and the transporter or supplier can face penalties, so it's treated as a mandatory step rather than optional paperwork.
Disclaimer
This glossary entry is for general informational purposes only and does not constitute professional tax, legal, or financial advice. Rules and rates change, so consult a qualified Chartered Accountant for advice specific to your situation.