Complete Guide to E-Way Bill Generation and Validity Rules in 2025

Introduction

Moving goods without the right paperwork is one of the fastest ways for a business to land in trouble under GST. Among all compliance requirements, e-way bills are the most visible and the most strictly enforced. Trucks get stopped. Goods get detained. Penalties get imposed on the spot.

What makes this tricky is that e-way bill rules aren’t just about value limits. They involve distance, movement type, transporter responsibility, validity calculation, and accuracy of data. A small error can turn a perfectly genuine movement of goods into a compliance nightmare.

This guide explains e-way bill generation and validity rules in 2025 in a clear, step-by-step manner. We’ll cover the e-way bill limit, documents required, validity period calculation, penalties for errors, and how businesses handle e-way bill generation from software in real life.

What Is an E-Way Bill?

E-Way Bill is an electronic document required for the movement of goods under GST. It must be generated before goods are transported when the value of the consignment exceeds the prescribed limit.

In simple terms:

If goods are moving from one place to another, the government wants visibility of what is moving, from where, to where, and why.

The e-way bill provides that visibility.

E-Way Bill Limit in 2025 (Most Important Rule)

E-Way Bill Limit refers to the minimum consignment value above which an e-way bill becomes mandatory.

Current threshold

An e-way bill is required when the consignment value exceeds ₹50,000.

This limit applies to:

• Sale of goods
• Purchase returns
• Job work
• Branch transfers
• Any movement for reasons other than supply
  

Region / State	Intrastate Limit	Special Condition	Why this rule exists
Central / Interstate	₹50,000	Mandatory for all states	To track movement across state borders and prevent tax leakage.
Maharashtra / Delhi	₹1,00,000	For all taxable goods	These states handle huge volumes of trade, so they allow slightly higher tolerance before paperwork kicks in.
Gujarat / West Bengal	₹1,00,000	For all taxable goods	High industrial and trading activity, so they align limits with business practicality.
Tamil Nadu / Bihar	₹1,00,000	For all taxable goods	To simplify compliance while still monitoring major consignments.
Rajasthan	₹2,00,000	For movement within the same city	Large geographic area, so intra-city movement often happens within short distances. The rule reduces unnecessary paperwork for local logistics.
Kerala (2025 Update)	₹10 Lakh	Mandatory EWB for Gold (Chapter 71)	Gold is high-value, small-volume, and prone to evasion. The state relaxed limits for normal goods but tightened specifically on gold.

Important clarification

• The ₹50,000 limit is based on invoice value, including tax.
• If multiple invoices are carried in one vehicle and the total exceeds ₹50,000, an e-way bill is required.

Example

If three invoices of ₹20,000 each are transported in one truck, total value = ₹60,000 → E-way bill required.

Situations Where E-Way Bill Is Mandatory Even Below ₹50,000

Even if the consignment value is below ₹50,000, an e-way bill is still required in certain cases:

• Inter-state movement of goods for job work
• Inter-state transport of handicraft goods by exempted persons
• Movement of goods on behalf of a principal by job worker

These exceptions often catch businesses off guard.

Documents Required for E-Way Bill

Before generating an e-way bill, certain documents must be ready.

Documents Required for E-Way Bill include:

• Tax invoice, bill of supply, or delivery challan
• Transporter details (Vehicle number or transporter ID)
• GSTIN of consignor and consignee
• Place of dispatch and delivery
• Reason for transportation

Practical tip

If the vehicle number is not known at the time of generation, you can generate the e-way bill using the transporter ID and update the vehicle number later.

Types of E-Way Bills

There are two parts to every e-way bill:

Part A

Contains:

• Invoice details
• GSTINs
• Value of goods
• HSN
• Reason for transport
  

Part B

Contains:

• Vehicle number or transporter details

Goods cannot move legally unless Part B is completed.

How to Generate an E-Way Bill (Step-by-Step)

E-way bills can be generated through the portal, SMS, or directly from accounting software.

Generating E-Way Bill from Software

Most businesses prefer generating e-way bills directly from billing or accounting software because it:

• Avoids duplicate data entry
• Reduces human error
• Saves time
• Links invoice and transport data automatically

Typical flow:

1. Invoice is created in the system
2. E-way bill option is selected
3. Transport details are added
4. E-way bill number (EWBN) is generated
5. EWBN is printed or shared with transporter

This integrated approach significantly reduces mistakes compared to manual portal entry.

E-Way Bill Validity Period (How It Is Calculated)

E-Way Bill Validity Period depends on the distance goods need to travel.

Validity Rules in 2025

Distance	Validity
Up to 200 km	1 day
For every additional 200 km or part thereof	+1 day

Example 1

Distance = 180 km
Validity = 1 day

Example 2

Distance = 350 km
Validity = 2 days

Example 3

Distance = 620 km
Validity = 4 days

Important point – Even 1 extra kilometre beyond a slab adds one full day.

When Does Validity Start?

Validity starts from the time the e-way bill is generated, not when the vehicle starts moving.

This is a critical detail many businesses miss.

Extension of E-Way Bill Validity

Validity can be extended only before expiry.

Common reasons for extension:

• Vehicle breakdown
• Natural calamity
• Traffic issues
• Trans-shipment delays

Once expired, a fresh e-way bill may be required, depending on circumstances.

Common Error	What Goes Wrong	Why It’s Risky	Practical Solution
Wrong vehicle number	Even one digit is entered incorrectly	E-way bill becomes invalid during transit	Double-check vehicle number before final submission and update Part B immediately if the vehicle changes.
Expired e-way bill	Goods are still in transit after validity period ends	Goods and vehicle may be detained with penalty	Calculate distance accurately and track validity expiry; extend validity before it lapses if needed.
Mismatch between invoice and e-way bill	Invoice value, quantity, or GSTIN doesn’t match	Considered incorrect documentation	Ensure invoice details auto-sync with e-way bill or manually cross-verify before generation.
Wrong distance entered	Shorter distance entered than actual	Validity period becomes insufficient	Use standard distance tools or predefined routes to enter realistic distances.
Using incorrect document type	Invoice used instead of delivery challan or vice versa	Treated as improper documentation	Select document type based on reason for movement—sale, return, job work, or transfer.
Not updating vehicle number after trans-shipment	Vehicle changes but Part B not updated	E-way bill becomes invalid mid-route	Update Part B immediately when vehicle changes during transport.
Generating e-way bill after goods have moved	E-way bill created post-dispatch	Considered non-compliance	Always generate e-way bill before goods leave the premises.
Multiple invoices not consolidated properly	Separate invoices not linked to one e-way bill	Confusion during inspection	Generate a consolidated e-way bill when carrying multiple invoices in one vehicle.

Penalty for E-Way Bill Errors

Penalty for E-Way Bill Error can be severe, even if the mistake is unintentional.

Common consequences:

• Penalty of ₹10,000 or tax amount involved (whichever is higher)
• Detention of goods and vehicle
• Additional fines for release
• Delays in delivery and customer disputes

Example

If GST involved is ₹18,000, penalty can be ₹18,000 (higher than ₹10,000).

What Happens During an E-Way Bill Inspection

When goods are intercepted:

Officials usually check:

• Invoice or delivery challan
• E-way bill validity
• Vehicle number accuracy
• Consistency of details

If discrepancies are found, proceedings begin immediately.

Importance of Accurate E-Way Bill Compliance

E-way bills are not just transport documents. They are real-time compliance checkpoints.

Accurate e-way bill practices help:

• Avoid detention and penalties
• Maintain delivery timelines
• Improve transporter relationships
• Reduce audit risk
• Protect business reputation

How Businesses Simplify E-Way Bill Compliance

Manual entry increases risk as volumes grow. Businesses handling regular dispatches typically rely on:

• Integrated billing and e-way bill systems
• Pre-defined distance mapping
• Validation checks before generation
• Centralised tracking of validity expiry
  

This is why many businesses prefer generating e-way bills directly from software like Vyapar, where invoice data, transport details, and compliance rules work together in one flow, reducing mistakes without adding complexity.

Special Cases You Should Know

Job Work Movement

E-way bill required even for sending goods for processing.

Branch Transfers

Movement between branches under same PAN still needs e-way bill.

Sales Returns

E-way bill required using delivery challan or return invoice.

Movement Within Same State

Distance and value rules still apply.

Delivery Challan explains why goods are moving.
E-Way Bill tracks how and where goods are moving.

They work together, not as substitutes.

How Long Should E-Way Bill Records Be Kept

Businesses should maintain e-way bill records for at least 6 years, aligned with GST audit timelines.

This includes:

• EWBN
• Invoice copies
• Transport details
• Extension history

Future Outlook for E-Way Bills

Authorities are increasingly using:

• Analytics
• GPS correlation
• Invoice matching
• AI-based risk profiling

This means:
Manual errors that once slipped through are now flagged automatically.

Compliance is shifting from reactive to preventive.

Critical 2025 System Blocks

The GST portal now enforces two “Hard Stops” that your billing team must know:

1. The 180-Day Rule: You cannot generate an E-Way Bill for an invoice, credit note, or delivery challan dated more than 180 days ago. This prevents businesses from using old “open” invoices to move new stock.
2. The 360-Day Extension Cap: The validity of an E-Way Bill can no longer be extended beyond 360 days from the original generation date, even in cases of major breakdown or trans-shipment.
3. 2-Factor Authentication (2FA): As of April 2025, all taxpayers must use 2FA (OTP via mobile/email) to log into the E-Way Bill portal.

Conclusion

E-way bills are one of the most operationally sensitive areas of GST compliance. The rules themselves aren’t complicated, but the consequences of small mistakes can be expensive and disruptive.

Understanding the e-way bill limit, keeping the right documents ready, calculating validity correctly, and avoiding errors is essential for smooth movement of goods in 2025. As volumes increase, relying on manual processes becomes risky. Businesses that integrate e-way bill generation directly into their billing flow using systems like Vyapar find compliance easier, faster, and far less stressful.

Handled properly, e-way bills stop being a daily worry and become a routine part of logistics operations