E-Way Bill 2026: Rules, Limit, Generation Process & Penalties Under GST

The new legislation stipulates that from 15th June 2026, a "Ship To GSTIN" will be mandatory for all Bill To / Ship To EWB transactions. To find out about the 2026 update, compliance requirements, and how to create your EWB, please refer to the information contained within this comprehensive e-Way Bill guide.

What's New? Major Changes in 2026

➡️ During the e-way bill generation, it is strictly mandatory to declare the Ship-To GSTIN for transactions utilizing a Bill-To/Ship-To model.

➡️ From 15th June 2026, the option for E-Way bill closure and voluntarily updating to the APIs is going to be permanently live on the production portal.

➡️ The validity of the e-way bill for regular cargo is 1 day for covering up to 200 km distance, whereas for over-dimensional cargo/multimodal shipments, it is also 1 day but only up to 20 km.

What is an E-Way Bill in India?

An E-Way Bill (Electronic Way Bill) is an electronic compliance document that is required under Section 68 of the Central Goods and Services Tax (CGST) Act of 2017 and Rule 138 of the CGST Rules of 2017 and must be created and generated by suppliers or transporters prior to the movement of goods. However, this document generation is only mandatory when the goods are worth over Rs 50,000. Whether the goods are supplied interstate or intrastate, an e-way bill is mandatory in both cases. 

E-Way Bill Applicability

As mentioned, E-way bill generation is compulsory in India when there is a movement of goods. The generation of the e-way bill is required in the following scenarios:

• It must be generated when goods cross the threshold limit for normal supply, stock transfer, or returns. 
• Applicable to unregistered persons who engage in interstate job-work movements and interstate transport of handicraft goods. 

Critical Compliance: The registered recipient is responsible for E-way bill generation when an unregistered supplier sends goods to a registered recipient.

What Are the State-Wise E-Way Bill Limits?

The INR 50,000 is a nationwide fixed threshold limit for interstate travel (between different states). Meanwhile, the threshold limit for intra-state (within the same state) is determined by the specific state's GST rules. Check the table for the intrastate movement threshold limit.

For further information related to detailed compliance, rules, etc., visit the official E-Way Bill System portal. 

Who Is Applicable to Generate E-Way Bill?

The E-Way Electronic Way Bill generation is mandatory and a legal requirement in India when the consignment value exceeds Rs 50,000. But who is required to generate it? The following parties should generate the mandatory e-way bill in India before the transportation of goods. 

• Registered Supplier (Consignor): The registered suppliers who are using their own vehicle, a hired transport, or railway/air/shipment should generate the bill. 
• Registered Recipient (Consignee): Such parties are responsible for e-Way Bill generation when they receive the goods from a non-registered supplier or if they manage the transport themselves. 
• Transporter: Before handling the goods for transit, the suppliers or the recipient have to apply for E-Way bill generation. 
• Unregistered Persons: Crucial for the unregistered persons to enroll on the official portal to get a Transporter ID (TRANSIN). It allows for the e-way bill generation. Even if the unregistered person is supplying goods interstate, they also need to generate a bill if the goods exceed the threshold limit. 

Who is Exempt from E-Way Bill Generation?

The Goods and Services Tax (GST) rules determine that E-Way Bill generation is not mandatory when the consignment value is less than Rs 50,000. In more detail:

• Low-Value Consignments: Not mandatory to generate the bill when the consignment value is below Rs 50,000.

• Non-Motorised Transport: To transport the goods, use the manual carts, animal-driven vehicles, or cycles; then, bill generation is not required. 

• Empty Cargo Containers: Bill generation is not mandatory if the cargo containers are in transit. 

• Specific Exempt Goods: Regardless of value, over 150 essential and perishable goods are exempt from E-Way Bill generation. These excluded goods include dairy & farm products, agricultural products, food staples, etc. 

• Weighbridge Transit: E-Way Bill generation is not compulsory if the goods are transported from a weighbridge within a 20-kilometre radius for testing purposes.
• Government/Rail: If the consignor is the central government, a state government, or a local authority, bill generation is not mandatory when goods are transported by rail. 

E-Way Bill Components Checklist

While applying for the electronic waybill generation, the format is categorized into two sets. Part A contains the consignment information, whereas Part B contains the transport details. 

Part A (Consignment Details)

This part contains the information related to transaction-specific and filled out by the suppliers or recipients. 

• GSTIN of both the suppliers and the recipient
• Tax Invoice or challan date and number
• Delivery location PIN code
• Taxable consignment value
• HSN code of goods
• Transportation Reason (for supply, export/import, job work, exhibition, or sales return). 

Part B (Transport Details)

This part is filled out by the transporter or the person in charge of conveyance. 

• Transport Document Number
• Transporting the vehicle registration number
• Transporter ID (If the transporter is registered on the portal, it generates automatically). 
• Mode of Transport (By road, rail, air, or ship)

Note: Part A, which contains the consignment details, cannot be updated once it is submitted.

Process of E-Way Bill Generation

It has become easier for the suppliers and transporters to generate the electronic waybill due to the latest E-Way Bill 2.0 portal and the strict GSTN Advisory 661 rules. Verifying the documents' accuracy is important before starting the bill generation procedure. Make sure to have up-to-date information regarding the necessary documents (including the supplier and recipient GSTINs), consignment information, and transport information as well. This is a complete e-Way Bill generation process: 

Step 1: Log in With MFA

The "ewaybillgst.gov.in" is the primary portal to generate the bill. However, to avoid the technical errors and rush on the portal, the governing authority further launched the secondary portal ewaybill2.gst.gov.in. Enter the OTP (sent on the registered phone number) to complete the mandatory MFA (Multi-Factor Authentication). 

Step 2: EWB-01 Entry Form

Once complete, click on the option E-waybill > Generate New to navigate to the EWB-01 form.

Step 3: Transactions & Documents

Select the transaction type (outward or inward) and type of transaction; also include the document type and document no. You'll need to follow the new regulations regarding the document date (must not be older than 180 days).

Step 4: Complete "From" and "To" Part Details

Must enter the details of both parties (names, addresses, and GSTINs). To manage the tracking for Bill-To/Ship-To transactions, you must enter the 'Ship to.' GSTIN. The unregistered recipients can use the URP. 

Step 5: Enter Consignment Details & Ensure Accuracy

Enter your product information (Quantity / HSN Code / Name of Product / Description of Product / Taxable Value of Product) accurately, and also according to the DGS and ABC systems we are using.

Step 6: Part B Verification

Once you mention the PIN code on the portal, it will automatically calculate the distance. Must also mention the vehicle number or transport ID. 

Step 7: Final Step

Before submitting your information, double-check that everything you've entered is accurate. Once submitted, you will receive a 12-digit E-WAY Bill No. (EBN) and QR code.

What Is the Validity of E-Way Bill?

Under GST rules, the validity of the E-way bill is determined by how long the vehicle must travel.  The exact timeline starts from day one when the bill is generated (calculated as 24 hours). The validity structure is categorized as:

• Regular Cargo: If the distance is travelled for up to 200 km, the bill will be only valid for one day. For every additional 200 km, the validity will increase by +1 additional day. 
• Over-Dimensional Cargo (ODC): Day 1 validity if the distance is covered up to 20 km, and for every additional 20 km, the validity increases +1 additional day.

Note: The validity of the E-way bill can be extended in case the goods are delayed due to some reasons. However, it can only be extended within 8 hours before or within 8 hours after the original bill's expiry.

Non-Compliance Penalties with E-Way Bill Rules

Failure to comply with E-Way Bill compliance leads to severe penalties under the GST Act. Under Section 122 of the CGST Act, the registered suppliers or transporters face a Rs 10,000 statutory fine for transporting taxable goods without generating a valid E-way bill. This general penalty also includes the tax sought to be evaded, which is much higher. The authorized officers have the right to detain or seize the vehicle if the vehicle is found without proper bill documents during transportation. The penalty is 200% of the tax payable if the owner first comes forward; if not, it will be increased to 50% of the value of the goods. 

Even minor mistakes can raise the fine penalty. Despite the E-way bill generation and activation, you may face a Rs 1,000 fine penalty due to a mismatch in information. For example, the mentioned details don't match the existing real vehicle number or PIN code; the fine penalty is capped at Rs 1,000. 

Conclusion

Electronic Way Bill (E-way Bill) generation is a strategic move in 2026 for the registered suppliers, recipients, and transporters to adhere to GST compliance. It significantly reduces tax evasion via strong digital tracking. To improve the authentication and tracking, the regulatory authority shifts toward a strict policy by providing notification of the new updates. In 2026, the mandatory updates include a strict 180-day invoice validity window, mandatory MFA verification, and "Ship-To GSTIN" declarations. 

To ensure smooth logistics, registered businesses acting as suppliers and/or as transporters must comply with E-WAY BILL regulations. Avoiding generating the bill or making errors in detail may raise challenges. With the professional team of JustStart, you can make the E-Way Bill generation process much smoother and faster. For a streamlined process, you will be assisted with GST registration, bill compliance management, and threshold guidance state-wise.

Frequently Asked Questions

Q1. What is an E-Way Bill?

Ans. An E-way bill (electronic waybill) is a legal digital document in India, which is required by the registered suppliers, recipients, and transporters. It is mandatorily required during the movement of goods. 

Q2. What is the limit for an E-way bill?

Ans. Under the Goods & Services Tax (GST), the E-way bill generation is a legal formality if the consignment value exceeds Rs 50,000. 

Q3. If I generate only part A and forget to generate part B, is the E-Way Bill valid??

Ans. No, without Part B, this digital form is marked as incomplete. Due to the incomplete form, you cannot start goods movement as it is illegal. 

Q4. Are there any charges for an e-way bill generation?

Ans. No, generating the E-way bill on the official website of the government portal is completely free of cost. The fee is only associated with penalties and professionals you hired to generate the bill. 

Q5. When does the electronic waybill's validity extend?

Ans. The suppliers or transporters can extend the bill's validity, but under specific conditions. This situation includes breakdowns, accidents, and/or natural disasters. However, the validity can only exceed 8 hours before and/or 8 hours after the bill's expiry. 

Q6. When can the e-Way bill not be generated?

Ans. If the invoices or delivery documents are more than 180 days old, you cannot generate the bill.

Q7. Can I use the two invoices to generate the E-way bill?

Ans. No, a separate e-way bill can be generated for each invoice under the GST rules. 

Q8. Is e-way bill generation mandatory for the non-physical movement of goods?

Ans. No, it is not mandatory to generate the electronic waybill if you are supplying services and involve no physical movements of goods. 

Q9. Can I cancel an E-way bill?

Ans. Yes, you can cancel your generated electronic waybill. However, you can only cancel it within 24 hours of its generation, including when the goods have not been transported. 

Q10. What happens if an E-way bill is wrong?

Ans. If there is any error in the e-way bill, the movement of goods will be stopped by the authority during transit. The penalties depend on the mistakes, whether minor or critical.