Introduction To E-Way Bill

The concept of E-way bill has been introduced under GST regime on similar lines of “way-bill” in the erstwhile tax regime. It is a mechanism to ensure that goods being transported comply with the GST Law and serves as an effective tool to track movement of goods.

Meaning of E-Way Bill

E-Way Bill is a document which includes details such as name of consignor, consignee, transporter, the point of origin of the movement of goods and its destination.

Requirement of E-Way Bill

An E-Way Bill will be required to be issued in case of movement of goods of value more than Rs. 50,000. The movement of goods can be due to any of the following reasons

  • Supply of raw material or other things
  • Returns or exchange or purposes other than supply (like Job work)
  • Inward supply through unregistered entity

The person in charge of a conveyance carrying any consignment of goods must carry with him the following documents

Cases where E-Way Bill is not required

*Furthermore, the CBIC has power to exempt the requirement to generate e-way bill in respect of movement of any goods by way of specifying in GST rules.

Person who can generate E-Way Bill

Validity of E-Way Bill

The validity of E-Way Bill shall be counted from the time the E-Way Bill has been generated based on distance to be traveled and type of cargo i.e. Whether Over Dimensional Cargo or other than Over Dimensional Cargo.

Validity period for an E-Way Bill for the above-mentioned type of cargo is as follows-  

Documents required to generate E-Way Bill

Penalty for not generating E-Way Bill

As per Section 122 of the CGST Act, 2017, a taxable person who transports any taxable goods without the cover of specified documents (e-way bill is one of the specified documents) shall be liable to a penalty of Rs.10,000/- or tax sought to be evaded (wherever applicable) whichever is higher.


The E-Way Bill provisions aim to remove the problems of the erstwhile way bill system prevailing under VAT regime in different states. Moreover, different states had prescribed different waybill rules which made compliance difficult. The e-way bill provisions under GST regime have brought in uniform e-way bill rules applicable throughout the country. The E-Way Bill will facilitate faster movement of goods on PAN India level. Furthermore, the E-Way Bill shall assist the government in keeping a check on fake invoices by keeping track of the movement of goods for actual transfer of title of goods.

This content is meant for information only and should not be considered as an advice or legal  opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.

Posted by:

CA Tarun Kapoor

AKGVG & Associates

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