There are specific rules regarding determining the eway bill validity, computing the eway bill distance based on the type of vehicle used for conveyance and consequences of failure to follow the eway bill rules laid down by the GST law. E-way bill is an electronic document generated online on the GST portal when there is movement of goods as the undisputed and unambiguous evidence of such movement, details of goods and the parties involved. It is an effective tool to reduce the instances of fake invoices, taking benefit of fake ITC without actual supply and reducing the tax frauds.
As per Circular No. 47/21/2018-GST dated 08.06.2018 – It is important to note that eway bill generation is not dependent on whether a supply is inter-state or not, but on whether the movement of goods is inter-state or not. Therefore, if the goods transit through a second state while moving from one place in a State to another place in the same State, an eway bill is required to be generated.
Computing eway bill distance and validity
Eway bill distance to be covered has to be determined from the place where the movement of the goods starts to the place of delivery of such goods under the same invoice. Since the validity of the eway bill depends on the eway bill distance coverage, it is important that there is no error in determining the distance between the two places as per the invoice and the eway bill. For the ease of the users, the eway bill portal now has the feature of automatically calculating the eway bill distance based on the PIN codes entered by the users.
Once the determination of the eway bill distance has been made correctly, the validity of the eway bill has to be ascertained based on eway bill distance as per the table below :-
| Nature of the Conveyance | Validity Period based on eway bill distance |
| Over dimensional cargo | 1 day for any distance upto 20 kms and thereafter additional one day for every 20 kms or part thereof |
| Other than Over Dimensional Cargo | 1 day for any distance upto 200 kms and thereafter additional one day for every 200 kms or part thereof |
| For multimodal Shipment i.e. in which at least one leg involves transport by ship | Same as for over dimensional cargo i.e. 1 day for any distance upto 20 kms and thereafter additional one day for every 20 kms or part thereof |
Over Dimensional Cargo refers to cargo carried as a single indivisible unit and which exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules, 1989. Over Dimensional Cargo refers to the cargo which extends beyond the dimensions (Length or Breadth or Height) prescribed for a vehicle under the said Rules.Over Dimensional Cargo refers to cargo carried as a single indivisible unit and which exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules, 1989. Over Dimensional Cargo refers to the cargo which extends beyond the dimensions (Length or Breadth or Height) prescribed for a vehicle under the said Rules.
Example 1 : Normal Cargo carrying goods of value Rs. 75,000/- from New Delhi (PIN Code – 110004) to Varanasi (PIN Code – 221004). Date of start of movement : 01.07.2023.
Step 1 :- First, we determine the eway bill distance from New Delhi (PIN Code – 110004) to Varanasi (PIN Code – 221004). This, comes to approximately 850 km.
Step 2 :- Since a normal cargo is being used for transportation of the goods, the validity period will be calculated keeping in mind the validity period i.e. 1 day for any eway bill distance upto 200 kms and thereafter additional one day for every 200 kms or part thereof.
Therefore, Number of days = 850/200 = 4.25 days i.e. 5 days.
Step 3 :- Validity of the eway bill is till = 06.07.2023 i.e. (01.07.2023 + 5 days).
Example 2 : Over dimensional Cargo carrying goods of value Rs. 2,55,000/- from New Delhi (PIN Code – 110001) to Jaipur (PIN Code – 302001). Date of start of movement: 15.07.2023.
Step 1 :- First, we determine the eway bill distance from New Delhi (PIN Code – 110001) to Jaipur (PIN Code – 302001). This, comes to approximately 250 km.
Step 2 :- Since an over dimensional cargo is being used for transportation of the goods, the validity period will be calculated keeping in mind the validity period i.e. 1 day for any eway bill distance upto 20 kms and thereafter additional one day for every 20 kms or part thereof.
Therefore, Number of days = 250/20 = 12.5 i.e. 13 days.
Step 3 :- Validity of the eway bill is till = 28.07.2023 i.e. (15.07.2023 + 13 days).
Where multiple vehicles are used for transportation of the same goods
In case the goods are being transported via multiple vehicles, ONE eway bill shall be prepared bearing details of all the vehicles and transporters in Part B of the eway bill. However, there is no need to update these details when the movement is intra-state and the eway bill distance is upto 50 kms only.
Provisions for extending the Validity Period of EWay Bill
Where, under circumstances of an exceptional nature, including trans-shipment, the goods cannot be transported within the validity period of the e-way bill, the transporter may extend the validity period after updating the details in Part B of FORM GST EWB-01.
The validity of the eway bill may be extended within eight hours from the time of its expiry.
As per Circular No. 61/2018-GST dated 04.09.2018 pertaining to eway bill in case of storing of goods in the godown of a transporter, a per rule 138 of the CGST Rules, 2017 e-way bill is a document which is required for the movement of goods from the supplier’s place of business to the recipient taxpayer’s place of business. Therefore, the goods in movement including when they are stored in the transporter’s godown (even if the godown is located in the recipient taxpayer’s city/town) prior to delivery shall always be accompanied by a valid e-way bill.
Thus, in case the consignee/ recipient taxpayer stores his goods in the godown of the transporter, then the transporter’s godown has to be declared as an additional place of business by the recipient taxpayer. In such cases, mere declaration by the recipient taxpayer to this effect with the concurrence of the transporter in the said declaration will suffice. Where the transporter’s godown has been declared as the additional place of business by the recipient taxpayer, the transportation under the e-way bill shall be deemed to be concluded once the goods have reached the transporter’s godown (recipient taxpayer’ additional place of business). Hence, e-way bill validity in such cases will not be required to be extended.
FAQs on eway bill
Q1. Whether an eway bill is required if the goods are moving within 10 kms?
A1. In intra-state movement of goods, an eway bill is not required if the distance being covered is upto 10 kms. However, in inter-state movement of goods, eway bill has to be generated even if the eway bill distance is within 10 kms.
Q2. In a case where the invoice has been raised but the goods have not been transported yet, how is the validity of the eway bill extended?
A2. Every eway bill has 2 parts – Part A bearing the details of the supplier, recipient, goods sold, invoice details and Part B has the details of the transporter and vehicle used for transportation. Once an invoice has been generated Part A of the eway bill should be generated incorporating all the required details.
However, Part B can be generated only when the actual movement of goods takes place since the details of the transporter and vehicle have to be included. As per the GST law, the validity of the eway bill starts from the date when Part B is entered, thus, even if the invoice has been raised but there is delayed delivery, the eway bill will still be valid and will require no extension.