Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
When it's needed
Movement of goods over ₹50,000 in value, in most cases. Some goods and short distances have exemptions. Confirm state rules.
Generate before movement
Create it on the e-way bill portal before the vehicle leaves; it has a validity based on distance. Moving without one risks detention and penalty.
Validity, who generates it, and detention
An e-way bill is needed for movement of goods over ₹50,000 in consignment value, whether for sale, branch transfer, job work or return, generated on the portal before the goods move. It has two parts: Part A (invoice and goods details) and Part B (the vehicle number). Either the supplier, the recipient, or the transporter can generate it, and its validity depends on distance — broadly one day per 200 km, with the clock running from when Part B is entered. For e-invoicing taxpayers, Part A can flow from the IRN automatically. Some movements are exempt — certain goods, non-motorised transport, and short distances under state rules — so check your state’s specifics. Moving taxable goods over the limit without a valid e-way bill, or with one that has expired or carries the wrong vehicle, exposes the consignment to detention and a penalty that can be significant, and the goods aren’t released until it’s paid or secured. The practical discipline is to generate the bill before dispatch, update Part B for any change of vehicle in transit, and watch the validity on long hauls so it doesn’t lapse, which is a common cause of detention.