E-Way Bill: Limits, Validity, Part-A/Part-B and Penalties Explained

If you move goods worth more than ₹50,000 across state lines in India, you must generate an e-way bill before the goods leave your premises — not after, not en route. Get this wrong and the GST officer can seize your goods and levy a penalty equal to 100% of the tax due. This guide covers every e-way bill rule that matters for FY 2026-27: the thresholds, how Part-A and Part-B work, validity periods, a worked example with real numbers, and the mistakes that trip up small businesses every single day.

What Is an E-Way Bill and Who Must Generate It?

An e-way bill (Electronic Way Bill) is a unique document generated on the GST e-way bill portal (ewaybillgst.gov.in) that authorises the movement of goods. Under the e-way bill rules framed under the CGST Act, the obligation to generate falls on:

• The registered supplier — if the movement is caused by a sale or supply
• The registered recipient — if the supplier is unregistered
• The transporter — if neither supplier nor recipient has generated it before goods are handed over

Unregistered persons can also generate e-way bills; the portal allows this for genuine business needs.

E-Way Bill Threshold Limits for FY 2026-27

The ₹50,000 threshold is the most misunderstood part of the e-way bill rules. Here is exactly how it works:

Key point on intra-state: Most states have set their own threshold at ₹50,000, but a few differ. Always check your state's GST notification before assuming. Karnataka, Maharashtra and Tamil Nadu, for example, have notified ₹50,000 for most goods.

Part-A and Part-B: What Goes Where and Why Both Matter

The e-way bill has two distinct parts. Many small businesses generate Part-A and think the job is done. It is not.

Part-A — Invoice and Supply Details

Part-A captures: GSTIN of supplier and recipient, place of delivery (PIN code), invoice number and date, value of goods, HSN code (at least 4 digits for turnover above ₹5 crore, 2 digits otherwise), and the reason for transportation (supply, job work, return, etc.).

Once Part-A is submitted, you get an e-way bill number (EBN). But the bill is not valid yet for road movement without Part-B.

Part-B — Transporter and Vehicle Details

Part-B captures the vehicle registration number (for road transport) or the transporter ID, transport document number, and mode (road, rail, air, ship). Part-B can be updated by the transporter if the vehicle changes mid-journey. Validity starts only once Part-B is filled.

Practical rule: If you are using your own vehicle, fill Part-B yourself. If you hand goods to a transporter, they must fill Part-B before the vehicle moves.

Validity of an E-Way Bill: Distance-Based Rules

Validity is calculated from the moment Part-B is entered, not from when the invoice is raised. The rules for FY 2026-27 are:

A day here means the remaining part of the day of generation plus subsequent calendar days. Extension is allowed if goods cannot be delivered due to exceptional circumstances (natural calamity, accident, transhipment delay) — you can extend within 8 hours before or after expiry, on the portal itself.

Worked Example: Generating an E-Way Bill for a ₹3,20,000 Consignment

Suppose Ravi Traders in Pune (Maharashtra) sells machine parts worth ₹3,20,000 (taxable value) to a buyer in Hyderabad (Telangana). GST rate is 18%.

• Taxable value: ₹3,20,000
• IGST at 18%: ₹57,600
• Invoice total: ₹3,77,600

Since this is inter-state and the invoice value exceeds ₹50,000, an e-way bill is mandatory. Ravi fills Part-A with HSN code, invoice number, and Hyderabad PIN code. He hands goods to a transporter. The transporter fills Part-B with the truck registration number — say MH-12-AB-1234. The e-way bill is now active.

The road distance is approximately 560 km. Validity = 560 ÷ 200 = 2.8, rounded up to 3 days. So the truck must reach Hyderabad within 3 days of Part-B submission.

If the truck is stopped at a check-post on day 4 with an expired e-way bill, the penalty would be ₹57,600 (100% of the IGST) or ₹10,000 — whichever is higher. In this case, ₹57,600 applies.

Penalties for E-Way Bill Violations

Under Section 129 of the CGST Act, movement of goods in contravention of e-way bill rules allows the officer to detain or seize goods and the vehicle. The tax and penalty must be paid to release them.

• If tax is payable on the goods: Penalty = 100% of the tax due, or ₹10,000 — whichever is higher
• If goods are exempted from tax: Penalty = 2% of the value of goods or ₹25,000 — whichever is lower
• Section 122 also applies: Transporting without an e-way bill can attract a separate penalty of ₹10,000 or the tax evaded

Importantly, if you pay the applicable tax and penalty on the spot, goods are released. If not, the officer can initiate proceedings to confiscate the goods.

Common Mistakes That Get Businesses Into Trouble

• Stopping at Part-A and moving goods: Part-A alone is not a valid e-way bill. Goods in transit without Part-B (vehicle number) are treated as moving without an e-way bill entirely.
• Wrong invoice value on Part-A: Some businesses enter only the taxable value, forgetting GST. The threshold check is on the total invoice value including GST — but always enter the full value to avoid disputes at check-posts.
• Not updating vehicle number after transhipment: If goods are transferred to another truck mid-route, the transporter must update Part-B on the portal. Forgetting this is one of the most common reasons for detention.
• Assuming intra-state movement is always exempt below ₹50,000: Certain goods (like tobacco, pan masala, and other notified items) require an e-way bill for intra-state movement regardless of value in several states. Check your state's specific notification.
• Not extending an expiring e-way bill: If delivery is delayed due to traffic, bad roads, or breakdown, many businesses just let the bill expire and hope for the best. You have a window of 8 hours before and after expiry to extend on the portal — use it. Document the reason.

Tools to Simplify E-Way Bill Compliance

Tracking e-way bill validity, distance calculations, and penalty exposure manually is error-prone. Use KyaTax's Free GST Tools to check e-way bill validity, estimate applicable penalties, and verify your HSN code before generating bills — particularly useful if you manage multiple consignments a month.

Frequently asked questions

Is an e-way bill required for goods transported by hand-carried luggage or personal vehicle?

No. E-way bill rules apply to motorised conveyances used for commercial transport of goods. Personal use items carried in personal vehicles are exempt, but if a business owner is personally carrying commercial stock worth over ₹50,000 inter-state, the e-way bill is technically required. The practical test is whether it is a commercial supply.

Can I cancel an e-way bill after generating it?

Yes. You can cancel an e-way bill within 24 hours of generation, provided the goods have not already been verified in transit by a GST officer. Once verified, cancellation is blocked on the portal. Always cancel promptly if an invoice is cancelled or corrected to avoid mismatch notices.

What happens if the e-way bill expires while the goods are still in transit due to a breakdown?

You can extend the validity on the e-way bill portal. The extension window opens 8 hours before expiry and closes 8 hours after expiry. You must select the reason (accident, natural calamity, transhipment, etc.) and provide the new expected delivery date. Keep documentary evidence of the reason in case it is questioned.

Does an e-way bill replace a tax invoice?

No. The e-way bill and the tax invoice are two separate documents. The tax invoice is the record of the supply and is required under Section 31 of the CGST Act. The e-way bill is the movement document. Both must be present during transit — an e-way bill without a valid invoice is not compliant, and an invoice without an e-way bill (where required) attracts penalties.

General information for FY 2026-27, not professional advice for your specific case. Rules change — verify against the latest notification or ask a KyaTax expert.
Related: All free tools · More guides · Virtual CFO