E-way Bill Rules 2026: Threshold, Validity, Penalties — Complete Guide

What is an E-way Bill?

E-way Bill is an electronic document required for movement of goods worth more than ₹50,000 in a vehicle. Generated on ewaybillgst.gov.in, it contains:

• Consignor and consignee details
• Goods description, quantity, value
• Transporter details and vehicle number
• Place of dispatch and destination
• HSN code and GST rate

Without a valid e-way bill, goods can be detained, vehicle seized, and penalty levied.

When e-way bill is mandatory

Mandatory for movement of goods (interstate or intrastate) where:

• Consignment value exceeds ₹50,000 (some states have different intrastate threshold like Bihar ₹1 lakh, but ₹50k is most common)
• Goods moved in own vehicle, hired vehicle, by railways, by air or by vessel
• For supply (sale), branch transfer, job work return, exhibition, etc.

Exempt scenarios:

• Movement up to 50 km within same state for job work (Form GST EWB-04)
• Specific exempted goods (LPG cylinders, kerosene, postal baggage, jewellery in some cases)
• Personal use of household goods
• Transportation by non-motorised vehicle

Validity period — Distance-based

Validity depends on distance (one day = 24 hours from generation):

• Up to 100 km — 1 day
• Every additional 100 km — +1 day
• Over Dimensional Cargo (ODC) — 1 day per 20 km

Examples:

• Mumbai to Pune (150 km) — 2 days
• Mumbai to Bangalore (1,000 km) — 10 days
• Delhi to Chennai (2,100 km) — 21 days

Extension allowed in genuine cases (vehicle breakdown, etc.) — apply through portal before expiry.

Penalties for non-compliance

Section 122 and 129 of CGST Act:

• Without e-way bill: 100% of tax payable on goods OR ₹10,000 whichever is higher
• For non-payment of tax: Penalty equal to tax amount + 18% interest
• Vehicle and goods detention: Until taxes and penalty are paid
• Confiscation in extreme cases (deliberate evasion)

Plus business disruption costs — detained vehicles, customer order delays, transporter complications.

Generation process

1. Login to ewaybillgst.gov.in with GST credentials
2. Click 'Generate New' under e-Way Bill
3. Fill Part A (consignor, consignee, goods details, value)
4. Fill Part B (transporter ID, vehicle number)
5. Submit — e-way bill number (EBN) generated
6. Take printout or save digital copy
7. Driver must carry the e-way bill during transit
8. Update vehicle change (Part B) if vehicle is changed midway

For bulk generation: API integration or Excel upload supported. For SMS-based generation: register mobile and use coded SMS.