E-Way Bill: Rules and How to Generate

An e-way bill is an electronic document required for moving goods above a certain value from one place to another under GST. It carries the invoice details and the transport details, and it must accompany the goods during transit, so that tax authorities can verify the movement is genuine. You generate it on the e-way bill portal (ewaybillgst.gov.in) or directly from software like TallyPrime. It's needed both for interstate and, above a value, intrastate movement of goods. This lesson explains when an e-way bill is required, what it contains, and how to generate one. Because the value threshold can vary, always confirm the current figure on the official portal.

Why the e-way bill exists

Before GST, goods moving between states faced check-posts and paperwork that caused delays. The e-way bill replaced that with a single electronic document. Its purpose is to ensure that goods being transported are backed by a proper invoice and reported to the system, which curbs tax evasion (moving goods without recording the sale). For a business, it's a compliance requirement: move taxable goods above the threshold without a valid e-way bill, and the goods (and vehicle) can be detained and penalised. So anyone handling dispatch in an accounts or logistics role needs to understand it.

When is an e-way bill required

An e-way bill is generally required when goods worth more than a threshold value (commonly ₹50,000, but confirm the current figure and any state-specific limits) are moved:

• For a supply (a sale).
• For reasons other than supply (like a stock transfer between your own branches).
• For an inward supply from an unregistered person.

It's required for interstate movement above the threshold, and for intrastate movement above the limit set by each state (some states have different limits). Certain goods and short-distance movements have exemptions.

The two parts of an e-way bill

An e-way bill has two parts, and knowing this is a common exam/interview point:

Part A is the "what and who"; Part B is the "how it's moving". Both are needed for a complete, valid e-way bill (with limited exceptions for very short distances).

How to generate an e-way bill (step by step)

On the e-way bill portal:

1. Log in to ewaybillgst.gov.in with your GST credentials.
2. Choose Generate New.
3. Fill Part A: transaction type, the invoice number and date, the buyer's GSTIN, the value, and the HSN of the goods.
4. Fill Part B: the vehicle number and transporter details.
5. Submit. The portal generates a unique e-way bill number (EBN) and the e-way bill document.
6. Carry a copy (print or digital) with the goods during transit.

Validity of an e-way bill

An e-way bill is valid for a limited period based on the distance the goods travel, roughly one day per a set number of kilometres (confirm the current rule on the portal). If the goods don't reach in time (say a breakdown), the e-way bill can be extended. This validity ensures the document reflects an actual, ongoing movement.

How Tally helps

TallyPrime can generate e-way bills directly from your GST sales invoice. Because the invoice already has the buyer, value and HSN, Tally uses that data to create Part A, you add the transport details for Part B, and Tally connects to the portal to generate the e-way bill number. This saves re-entering the same data on the portal and reduces mismatches between the invoice, the e-way bill and the GST return. It's another example of how one clean entry in Tally powers several compliance outputs.

Real-world scenario (why dispatch staff must know this)

Picture a wholesaler dispatching a ₹2,00,000 order to another city. If the goods leave without a valid e-way bill, they can be stopped in transit, detained, and penalised, delaying delivery and upsetting the customer, even though the sale itself is genuine. The accounts/dispatch person who generates the e-way bill correctly (right value, right vehicle, valid period) keeps goods moving smoothly. In many businesses this is a daily task, so understanding the e-way bill, its threshold, its two parts, and how to generate it, is a practical, employable skill, especially in trading and distribution companies.

Pro tips

• Confirm the current value threshold and any state-specific intrastate limit on the portal.
• Part A is invoice details; Part B is transport details, both are needed.
• Generate the e-way bill from Tally when possible, so it matches your invoice and return.
• Keep the e-way bill (print or digital) with the goods; it may be checked in transit.

Common mistakes

• Moving goods without an e-way bill above the threshold. This risks detention and penalty.
• Wrong vehicle number in Part B. A mismatch during a check can cause problems; update it if the vehicle changes.
• Ignoring intrastate limits. Some states require e-way bills for within-state movement too; check your state.
• Letting it expire. If goods are delayed, extend the e-way bill rather than let it lapse.

Key takeaways

• An e-way bill is required to move goods above a value threshold under GST.
• It has Part A (invoice details) and Part B (transport details), both needed.
• Generate it on ewaybillgst.gov.in or from Tally; carry it with the goods.
• Verify the current threshold, state limits and validity rules on the official portal.

Practice task

On the e-way bill portal (or its info pages), find the current value threshold for generating an e-way bill and check whether your state has a specific intrastate limit. Then, for a sample invoice, list what you'd enter in Part A and what you'd enter in Part B.

Learn GST compliance, e-invoicing and e-way bills hands-on in the ADFA program at HCI.