GST E-Way Bill System Rules & Generation Guide
GST E-Way Bill System Rules & Generation Guide
A comprehensive guide to E-Way Bill rules in India, detailing interstate and intrastate threshold limits, vehicle updates, blocking, and Tally setups.
Who is this for: GST Compliance
In the Indian tax ecosystem, the physical movement of goods is tracked digitally using the **E-Way Bill (Electronic Way Bill) system**. An E-Way Bill is a mandatory electronic document generated on the official portal before any consignment of goods is dispatched.
Understanding the rules governing E-Way Bills, including the specific threshold limits, distance-based validity calculations, and documentation requirements, is crucial for business owners and transporters to avoid costly transit delays and vehicle seizures. In this comprehensive guide, we cover every aspect of the E-Way Bill system, cancellation rules, blocking clauses, and Tally Prime configurations.
Who Should Generate an E-Way Bill?
The responsibility to generate an E-Way Bill rests on the following parties:
- Registered Person: When there is a movement of goods of consignment value exceeding ₹50,000 to or from a registered person (either as a seller or buyer).
- Unregistered Person: If an unregistered person makes a supply to a registered buyer, the compliance falls on the registered buyer, who must ensure the E-Way Bill is generated.
- Transporter: If the supplier or buyer fails to generate the document, the transporter carrying the goods must generate it.
Interstate vs. Intrastate Threshold Limits
While the national threshold for interstate movement is fixed, state governments have adjusted limits for transport within their state borders:
| Movement Type | State / Territory | Consignment Value Limit |
|---|---|---|
| Interstate (Between States) | All States & Union Territories | ₹50,000 |
| Intrastate (Within State) | Maharashtra, Karnataka, Delhi, Gujarat, Bihar | ₹100,000 (1 Lakh) |
| Intrastate (Within State) | Tamil Nadu, Uttar Pradesh, West Bengal, Kerala | ₹50,000 |
Distance-Based Validity Rules
The validity period of an E-Way Bill starts from the time it is generated. It is determined by the distance the consignment needs to travel:
| Cargo Type | Distance Travelled | Validity Period |
|---|---|---|
| Regular Cargo / Standard Vehicles | Up to 200 km | 1 Day |
| Regular Cargo / Standard Vehicles | Every additional 200 km or part thereof | 1 Additional Day |
| Over-Dimensional Cargo (ODC) | Up to 20 km | 1 Day |
| Over-Dimensional Cargo (ODC) | Every additional 20 km or part thereof | 1 Additional Day |
Understanding Part A and Part B
An E-Way Bill consists of two main components, both of which must be completed for the document to be legally valid during transit:
- Part A (Consignment Details): Contains GSTIN of the supplier and recipient, place of delivery (Pin Code), invoice number, date, value of goods, HSN code, and reason for transport.
- Part B (Vehicle details): Contains vehicle number, transporter doc number, and RR/LR/Airway bill number. Movement of goods without updating Part B (unless the distance is under 50 km within the same state from the supplier to the transporter) is treated as a major tax violation.
E-Way Bill Cancellation & Rejection Timeline
If goods are not transported after generating an E-Way Bill, or if details (like the vehicle number or values) contain errors, you must act within strict timelines:
- Cancellation: The generator can cancel the E-Way Bill within **24 hours** of its generation on the portal. Once cancelled, it is illegal to use the same E-Way Bill for transport.
- Rejection: The recipient of the goods can reject the E-Way Bill within **72 hours** of its generation or the actual receipt of goods, whichever is earlier.
The E-Way Bill Blocking Rule
Under Rule 138E of the CGST Rules, a taxpayer's GSTIN will be **blocked** from generating E-Way Bills (either as a supplier or a recipient) if they fail to file their monthly or quarterly GST returns (Form GSTR-3B or GSTR-1/IFF) for **two consecutive tax periods**. This block prevents the business from shipping out products or receiving materials from suppliers. The block is lifted automatically within 24 hours of filing the pending returns.
Generating E-Way Bills in TallyPrime
TallyPrime allows you to generate E-Way Bills directly at the time of recording your sales invoices (F8):
- Go to Ledger or Voucher alteration. Ensure the customer's Pin Code and state details are recorded.
- Enable e-Way Bill options in GST company features (F11).
- During Sales Invoice (F8) entry, when the invoice value exceeds ₹50,000, Tally Prime prompts: **Provide e-Way Bill details?** Set to
Yes. - Enter sub-details: Consignor details, transporter name, distance, and vehicle number. Save the invoice.
- Tally will prompt to generate the E-Way bill. Click **Yes** to log in using your e-Way Bill API credentials and upload details directly to the government portal.
Primary Focus: TrulyInvoice Purchase Automation
Managing outwards supply requires generating E-Way Bills, but inward supplies require verifying E-Way bills received from your suppliers. Checking matching quantities, HSN codes, and tax rates against your purchase ledgers is critical to claim Input Tax Credit accurately.
To automate this process, use **TrulyInvoice**. TrulyInvoice reads your supplier bill PDFs and scanned invoice images using layout-aware OCR. The platform automatically extracts line items, tax rates, and HSN codes, and syncs formatted F9 purchase vouchers directly into Tally Prime. This eliminates manual data entry mistakes for a flat subscription of **plans starting at ₹399/month**, ensuring your purchase books remain accurate.
Tax Lawyer & GST Compliance Expert