In the movement of goods, compliance with transport documentation is essential. One such document is the E-Way Bill, introduced to monitor and record goods in transit. But at its core, what is e way bill? In simple terms, it is an electronic waybill required for transporting goods whose value exceeds a specified threshold. Before goods begin their journey, this document must be generated online and carried by the person in charge of conveyance. It replaces physical waybills and enables efficient tracking through a central portal. Integrating e-Way Bill APIs can further automate this process.
This digital requirement ensures that taxpayers and transporters adhere to regulatory norms and helps tax authorities monitor interstate and intrastate movement. It reduces paperwork and brings uniformity to the process of documentation across states.
When an E-Way Bill Is Required
An E-Way Bill is generally required whenever goods worth more than the threshold value are transported. This threshold applies to a single consignment, including the taxable value and any taxes, freight, insurance, and other charges.
It matters not whether transportation is for sale, return, repair, job work, or any other reason. Even supplies without consideration and inward supplies from unregistered persons can require an E-Way Bill. In some special cases, such as notified inter-state movements or specific exempted goods, different rules may apply. However, in most routine business scenarios, movement of goods above the prescribed threshold triggers the requirement.
How to Generate an E-Way Bill
Before discussing modification or cancellation, it is useful to understand how an E-Way Bill is generated. The E-Way Bill is created online using Form GST EWB-01 through the official portal.
- Log in to the E-Way Bill portal using the registered GSTIN and login credentials.
- Select the option to generate a new E-Way Bill and choose the transaction type as outward or inward, depending on whether you are the supplier or the recipient of the goods.
- Choose the relevant supply type, such as sale, return, job work, or transfer, and select the applicable document type, including e-invoice or bill of supply.
- Enter the document number and date, along with the complete details of the supplier and recipient, including address, state, and pin code.
- Provide item-level details of the goods being transported, including description, HSN code, quantity, and consignment value.
- Enter transport details in Part B based on the mode of movement. For road transport, this includes the vehicle number or transporter ID. For rail, air, or ship, the transporter ID along with the transport document number and date must be specified.
- Review the entered information carefully and submit the form to generate the E-Way Bill.
- Once generated, a unique E-Way Bill Number (EBN) is issued. The EBN or a physical or electronic copy of the E-Way Bill must be available with the person in charge of the conveyance during transit.
Validity of the E-Way Bill
Once an E-Way Bill is generated, it is valid only for a specified time based on the distance of transport. Typically, the validity is one day for the first 100 kilometres, with additional days granted for every subsequent 100 kilometres or part of it.
If goods cannot reach their destination within the validity period due to unforeseen reasons, the transporter may extend the validity of the E-Way Bill. This can be done by updating Part B on the portal within eight hours before or after the expiry of the original validity period.
Modifying an E-Way Bill: What You Can and Cannot Change
Once an E-Way Bill is generated, it becomes a legally recognised document and cannot be edited in most of its fields. However, the system allows limited updates, primarily in Part B, which relates to transport details.
For example, if the vehicle number changes after generation, this can be updated on the portal so that the transported goods remain compliant with documentation requirements. Outside these transport details, modification of other fields is not permitted once the E-Way Bill is active.
This ensures that core details like invoice value, consignor/consignee, place of delivery, and goods description remain consistent and verifiable.
Canceling an Incorrect E-Way Bill
There are situations when an E-Way Bill is generated with incorrect information. In such cases, cancellation may be necessary. The following key points must be kept in mind:
- An E-Way Bill can be cancelled only within 24 hours of its generation. After this window, cancellation is generally not allowed.
- Cancellation is possible only if the E-Way Bill has not been verified by any authorised officer. Once verified, it cannot be cancelled.
If incorrect data was entered, it is best to cancel the E-Way Bill soon after creation. After cancellation, a new E-Way Bill can be generated with accurate details. To avoid duplication or compliance issues, it is advisable to ensure that the earlier E-Way Bill is cancelled before generating a replacement for the same invoice or consignment.
Recipient’s Role: Accepting or Rejecting an E-Way Bill
After an E-Way Bill is generated, the recipient of goods can review its details on the portal. If the recipient finds discrepancies or other issues, they have the option to reject the E-Way Bill within 72 hours of its generation or before delivery of the goods, whichever is earlier.
If the recipient does not take action within this period, the E-Way Bill is deemed accepted. This mechanism provides an additional level of validation and control over the correctness of transport documentation.
Conclusion
Correct management of an E-Way Bill is essential for ensuring compliance during the movement of goods. Understanding what an E-Way Bill is and how to handle it properly — including making limited modifications and timely cancellations — helps businesses avoid penalties and reduce errors during transport. Always review the details carefully before generation, and act promptly if corrections are needed. Following these practices will help ensure a smooth and legally compliant logistics process.
