Home Blog GST Day 27 GST Challenge: E-Way Bill Under GST– Rules, Generation, Validity, Exemptions & Penalties (2026 Guide)

Day 27 GST Challenge: E-Way Bill Under GST– Rules, Generation, Validity, Exemptions & Penalties (2026 Guide)

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Day 27 GST Challenge: E-Way Bill Under GST– Rules, Generation, Validity, Exemptions & Penalties (2026 Guide)
Day 27 GST Challenge E-Way Bill Under GST– Rules, Generation, Validity, Exemptions & Penalties (2026 Guide)
E-Way Bill Complete Guide — Day 27 | CA Devesh Thakur
Day 27 — GST Study Series

Electronic Way Bill
Complete Study Guide

Everything a CA student needs to master E-Way Bill under GST — concept, generation, validity, exceptions, enforcement & penalties.

Rule 138 · CGST Rules 2017
10 Sections Covered
By CA Devesh Thakur
etaxsave.com

E-Way Bill Journey at a Glance

Step 1Goods to Move
Step 2Value > ₹50,000?
Step 3Fill Part A + B
Step 4EWB Generated
Step 5Carry in Transit
Step 6Delivery & EWB Expires

⚠️ EWB must be generated BEFORE movement begins — not after.

📄 Free Printable Checklist

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Day 27 Complete Notes · Printable · A4 format · 100% Free

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Day 27 Reel — E-Way Bill explained visually
▶ Watch Reel on Instagram 🔗 Login to EWB Portal
1

What is an E-Way Bill?

The foundation — understand before you memorise

An E-Way Bill (EWB) is an electronic document generated on the GST portal that serves as proof of movement of goods. Think of it as a digital passport for goods in transit.

🧾 Traditional Waybill

A physical receipt/document issued by a carrier with shipment details — consignor, consignee, origin, destination, route.

📱 Electronic Way Bill (EWB)

Digital upgrade. Person causing movement uploads info on GST portal before movement begins and generates EWB electronically.

📌 Legal Basis: Rule 138 of CGST Rules, 2017 governs E-Way Bills. The critical rule: information must be furnished prior to commencement of movement — whether the movement is for supply or any other reason.
Two Components of EWB
ComponentWho FillsKey Details
📋 Part APerson causing movement (Consignor/Consignee)GSTIN of recipient, PIN Code (delivery), Invoice/Challan No. & Date, Value of Goods, HSN Code, Transport Document No., Reason for Transport
🚛 Part BTransporterVehicle Number / Transport Details — this triggers actual EWB generation
⚠️ Key Point: Part A alone does NOT generate the EWB. Only after Part B (vehicle details) is filled does the system generate the unique EWB Number (EBN).
2

When is E-Way Bill Required?

Threshold, trigger & applicability — exam favourite

EWB is not always mandatory. The trigger depends on consignment value and mode of transport.

Decision Flowchart — Is EWB Required?
Movement of Goods Initiated
Consignment Value > ₹50,000?
NO
EWB Not Mandatory
(Can still generate voluntarily)
YES
EWB Mandatory
Generate before movement
* Special cases: Handicraft goods & inter-state job work → EWB mandatory regardless of value
SituationEWB Required?Value Condition
Normal supply (B2B/B2C)✅ YesValue > ₹50,000
Inter-State Job Work✅ Yes (always)Irrespective of value
Handicraft goods (inter-state)✅ Yes (always)Irrespective of value
Export / Import✅ YesValue > ₹50,000
Non-motorised transport❌ NoExempt
Consignment < ₹50,000❌ NoBelow threshold
Customs bonded goods❌ NoPort to ICD/CFS movement
Notified goods within state❌ NoAs per Rule 138(14)(d)
3

Who Should Generate the E-Way Bill?

Responsibility matrix — critical for exam & practice

The responsibility to generate EWB shifts depending on who is transporting and whether either party generates it or not.

🏭
Case 1
Own / Hired Vehicle or Rail / Air / Vessel
EWB generated by Consignor or Consignee themselves
🚛
Case 2
Goods Handed to Road Transporter
EWB generated by Transporter using Part A info from consignor
⚠️
Case 3
Neither Party Generates + Value > ₹50K
Transporter’s responsibility to generate EWB mandatorily
Special ScenarioWho Generates EWB
Goods sent by Principal (one state) to Job Worker (another state)Principal — irrespective of value
Handicraft goods transported inter-state by unregistered personThat person — irrespective of value
Multiple consignments in one vehicleTransporter prepares Consolidated EWB
Goods transferred to another vehicle mid-transitTransporter updates Part B before transfer
📌 FORM Used: FORM GST EWB-01 — Part A by consignor/consignee, Part B by transporter. If consignor has Invoice Reference Number (from FORM GST INV-1), Part A is auto-populated.
4

How is E-Way Bill Generated?

Step-by-step process & forms involved

EWB generation is a two-step process on the GST common portal. Understanding the flow helps in exams and real-life practice.

1️⃣

Consignor/Consignee

Logs into GST portal → fills Part A of EWB-01 (invoice details, goods, GSTIN)

2️⃣

Transporter

Fills Part B of EWB-01 (vehicle number) → EWB is generated

3️⃣

EBN Issued

Unique E-Way Bill Number (EBN) is generated and shared with supplier, recipient & transporter

4️⃣

Recipient Accepts / Rejects

Recipient gets EWB details on portal. Must accept or reject within 72 hours (else deemed accepted)

⚠️ Invoice Reference Number (IRN) Shortcut: A registered person can upload their tax invoice in FORM GST INV-1 on the portal and get an IRN. This IRN auto-populates Part A of EWB-01. IRN is valid for 30 days. In this case, no need to separately upload Part A.
📌 Generation also via SMS: EWB can be generated and cancelled through SMS — useful for transporters on the road without internet access.
5

Validity of E-Way Bill

Distance-based validity — most asked in exams

Validity of EWB is directly linked to the distance the goods must travel. The clock starts from the time of EWB generation.

Distance to be TravelledValidity PeriodEach Day Counted As
Less than 100 km1 Day24 Hours
100 km to 200 km2 Days24 Hours each
200 km to 300 km3 Days24 Hours each
300 km to 400 km4 Days24 Hours each
400 km to 500 km5 Days24 Hours each
Every additional 100 km+1 Day24 Hours
Validity Rule — Quick Visual
0–100 km
1 Day
100–200 km
2 Days
200–300 km
3 Days
300–400 km
4 Days
400–500 km
5 Days
Formula: Base 1 day + 1 day per 100 km thereafter

⏱ Can Validity be Extended?

Generally NO. However, Commissioner may extend validity for certain notified categories of goods. In exceptional circumstances, transporter can generate a new EWB after updating Part B of FORM GST EWB-01.

📅 “Relevant Date” Meaning

Relevant date = Date on which EWB was generated. Validity is counted from the time of generation, and each day = 24 hours.

6

Cancellation of E-Way Bill

When, how & the 24-hour rule

Sometimes goods are not transported or are transported differently than stated. EWB can be cancelled — but only within a strict time window.

✅ When CAN You Cancel?
  • 🔸 Goods not transported at all
  • 🔸 Goods transported differently from EWB details
  • 🔸 Order cancelled / transaction reversed
❌ When CANNOT You Cancel?
  • 🔹 EWB already verified in transit (Rule 138B)
  • 🔹 More than 24 hours have passed since generation
AspectRule
Time Limit to CancelWithin 24 hours of EWB generation
How to CancelElectronically on GST common portal — directly or via Facilitation Centre notified by Commissioner
Can cancel via SMS?Yes — SMS-based cancellation is available
If verified in transitCannot be cancelled under any circumstance
7

Exceptions — When No E-Way Bill Needed

Know what’s exempt — saves marks & avoids mistakes in practice

Even if consignment value exceeds ₹50,000, these situations are exempt from mandatory EWB generation.

No EWB Required Rule 138 Annexure CGST Rules 2017
#Exception CategoryReason / Basis
aGoods specified in Annexure to Rule 138 of CGST Rules 2017Notified exempt goods (e.g. vegetables, fruits, currency, jewellery under certain conditions)
bGoods transported by non-motorised conveyanceBullock cart, cycle, handcart etc.
cPort → Airport → Air Cargo Complex → Land Customs Station → Inland Container Depot / Container Freight StationCustoms clearance movement — under Customs supervision
dMovement within notified areas under Rule 138(14)(d) of SGST Rules of concerned StateState-specific exemptions
eConsignment value < ₹50,000Below threshold — not mandatory (voluntary allowed)
fGoods moved under Customs Bond/SupervisionCustoms-controlled movement
gDefence ministry goodsMinistry of Defence consignments
hEmpty cargo containersNo goods — no EWB needed
⚠️ EWB is Required Even for Non-Supply Movement: Export/Import, Job Work, SKD/CKD, recipient not known, line sales, sales return, exhibition/fairs, own use, sale on approval — all these non-supply movements still require EWB if value > ₹50,000.
8

Consolidated EWB & Vehicle Transfer Rules

Multi-consignment & mid-route vehicle changes

Real-world logistics are complex — multiple consignments, vehicle breakdowns, relay transport. GST rules have provisions for all these.

📦 Consolidated E-Way Bill

When a transporter carries multiple consignments in one vehicle — some above ₹50K (with individual EWBs) and some below — they must prepare a Consolidated EWB by listing serial numbers of all individual EWBs before departure.

🔄 Mid-Transit Vehicle Change

If goods are transferred from one vehicle to another mid-transit (breakdown, relay), the transporter must update vehicle details in Part B of FORM GST EWB-01 on the common portal before the goods move further.

ScenarioAction RequiredForm Used
Multiple consignments, one vehiclePrepare Consolidated EWB listing all individual EWB serial numbersFORM GST EWB-02
Vehicle change mid-transitUpdate Part B before goods move in new vehicleFORM GST EWB-01 (Part B update)
Transporter detained > 30 minutesUpload detention informationFORM GST EWB-04
Exceptional circumstance — validity expiredGenerate new EWB after updating Part BFORM GST EWB-01
📌 What Driver Must Carry: Invoice / Bill of Supply / Delivery Challan + a copy of EWB (physical or EWB number mapped to RFID device embedded in conveyance, as notified by Commissioner).
9

Penalties & Enforcement

Non-compliance consequences — high-weightage exam area

EWB compliance is enforced seriously under GST law. Non-compliance attracts significant penalties and detention of goods & vehicles.

💰
Section 122 Penalty
₹10,000
OR tax sought to be evaded
— whichever is GREATER
🚫
Section 129 Action
Detention & Seizure
Goods + vehicle + documents
all liable to be seized
🔍
Enforcement Powers
Interception & Inspection
Commissioner / authorised officer
can intercept any conveyance
Enforcement AspectRule / SectionDetail
Who can intercept?Rule 138BCommissioner or empowered officer — for inter-State & intra-State movement
Physical verification reportFORM GST EWB-03 Part AFiled online within 24 hours of inspection
Final inspection reportFORM GST EWB-03 Part BFiled within 3 days of inspection
Re-inspection after one checkRule 138BNOT permitted in the same State unless fresh specific evasion info arises
Vehicle detained > 30 minutesRule 138DTransporter can upload info in FORM GST EWB-04
⚠️ Important: If EWB is not generated wherever required, it is treated as contravention of Rule 138, CGST Rules 2017. The taxable person transporting goods without specified documents (EWB is a specified document) is liable under Section 122 CGST Act.
10

Quick Revision & Memory Aids

Mnemonics, tables & must-remember numbers for exams

Last-minute revision material. These are the numbers, forms and rules that appear repeatedly in exams.

₹50K
Threshold for mandatory EWB
24 hrs
Time to cancel EWB
72 hrs
Recipient acceptance window
30 days
IRN validity (INV-1)
100 km
= 1 day validity increment
₹10K
Minimum penalty (Sec 122)
All Forms at a Glance
FormPurposeWho Files
FORM GST EWB-01Main EWB form — Part A (consignment) + Part B (transport)Consignor / Consignee / Transporter
FORM GST EWB-02Consolidated E-Way Bill (multiple consignments)Transporter
FORM GST EWB-03Inspection Report — Part A (within 24 hrs) & Part B (within 3 days)Proper Officer
FORM GST EWB-04Report when vehicle detained for more than 30 minutesTransporter
FORM GST INV-1Invoice upload to get IRN (auto-populates EWB Part A)Registered Taxpayer
Mnemonic — PART A Contents
Remember: “G-PIN-VHT-R”
G — GSTIN of recipient
P — PIN Code (place of delivery)
I — Invoice / Challan No. & Date
N — (transport document) Number
V — Value of Goods
H — HSN Code
T — Transport Document No.
R — Reason for Transportation
📌 Exam Tip — Key Rule Numbers: Rule 138 = EWB mechanism | Rule 138A = Documents to carry | Rule 138B = Inspection of goods in transit | Rule 138C = Inspection & verification | Rule 138D = Facility for uploading info

© 2026 CA Devesh Thakur · etaxsave.com · cadeveshthakur@gmail.com · This document is for educational reference only and does not constitute professional legal advice.

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