An e-way bill is needed when goods worth more than ₹50,000 are moved, including by courier. The sender or the receiver normally generates it on the e-way bill portal; if neither has, the transporter must. A courier agency can also fill in Part A on the sender's authorisation. Some states set a different limit for movement within the state.
This guide is general information, correct to our knowledge on the date above. It is not tax advice. Limits, exemptions and validity rules change and differ by state, so confirm with your CA or on the official e-way bill portal (ewaybillgst.gov.in).
What an e-way bill is
An e-way bill (EWB) is an electronic document under GST that travels with goods in transit. It is generated on the government's e-way bill portal and gets a 12-digit e-way bill number. Tax officers can stop a vehicle and ask for it.
When a courier shipment needs one
- Between states: when the consignment value is more than ₹50,000.
- Within a state: the state decides. Many follow ₹50,000, and several use a higher limit, so check the rule for your state.
- Consignment value means the value on the invoice, including GST. The value of exempt goods on the same invoice is left out.
- Documents and some notified goods are exempt. The exemption list is long and specific; check it rather than assume.
Who generates the e-way bill
| Situation | Who generates it |
|---|---|
| Registered sender moves goods in their own or a hired vehicle | The sender (or the registered receiver) |
| Goods are handed to a transporter or courier | The sender fills in Part A; the transporter adds the vehicle details in Part B |
| Sender and receiver have not generated one | The transporter, from the invoice or delivery challan |
| Goods sent through a courier agency or e-commerce operator | The courier agency or operator can fill in Part A, if the sender authorises it |
| Unregistered sender, registered receiver | The receiver |
Part A and Part B
- Part A describes the goods: GSTIN of sender and receiver, delivery pin code, invoice or challan number and date, value, HSN code and reason for transport.
- Part B describes the transport: the vehicle number for road, or the transport document number for rail, air or ship.
The e-way bill is valid only once Part B is filled in. If a parcel changes vehicles at a hub, Part B has to be updated with the new vehicle. A transporter carrying many consignments in one vehicle can generate a consolidated e-way bill that lists them all.
How long an e-way bill is valid
| Distance | Validity (ordinary cargo) |
|---|---|
| Up to 200 km | 1 day |
| Every additional 200 km, or part of it | 1 more day |
If the goods can't reach in time, the validity can be extended around the time it expires. An e-way bill can be cancelled within 24 hours of being generated if the goods did not move.
What happens without one
Moving goods that need an e-way bill without one can bring a penalty of ₹10,000 or the tax sought to be evaded, whichever is higher, and the goods and vehicle can be detained until tax and penalty are paid. For a courier agency the real cost is usually the delay: a client's parcel held at a check post, and the calls that follow.
What a courier agency should do at booking
- Ask the declared value of every parcel, and take a copy of the invoice.
- If the value is over the limit, ask for the e-way bill number before you accept the parcel, or agree in writing that you will generate Part A for the client.
- Record the e-way bill number against the AWB, so it can be found when the carrier or an officer asks.
- Check the validity against the transit time for long surface lanes.
- Don't split one invoice into several parcels to stay under the limit. The limit applies to the consignment value.
For what a booking should capture besides the declared value, see courier booking software. For the tax on the courier charge itself, see GST on courier services.