An E-Way Bill is an electronic document required for the movement of goods worth more than a specified threshold (₹50,000 in most states, though some states set their own intra-state thresholds) from one place to another, whether by road, rail, air, or ship. It's generated on the government's e-way bill portal before the goods start moving and must accompany the shipment, typically carried by the transporter or available digitally for inspection. The E-Way Bill records details of the goods, their value, the GSTIN of the supplier and recipient, and the vehicle transporting them. It exists primarily to prevent tax evasion by making it possible for authorities to verify that goods being transported match what's actually been invoiced and reported in GST returns. E-Way Bills have a validity period based on the distance the goods need to travel, and goods found moving without a required, valid E-Way Bill can be detained, with penalties applied. For any business moving physical goods above the threshold, generating E-Way Bills correctly and on time is a routine but essential compliance step, usually integrated directly into the accounting or billing software workflow.
Example: A Surat textile manufacturer ships fabric worth ₹2,00,000 to a buyer in Ahmedabad. An E-Way Bill must be generated before the truck leaves, listing the invoice details, both parties' GSTINs, and the vehicle number.
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