The Ultimate Guide to E-Way Bill System in India (2026 Updated)

Let’s be honest: navigating the world of GST compliance can feel like learning a new language. You have invoices, returns, challans, and then there’s the eway bill system. If you are a business owner or an accountant, you might have felt a knot in your stomach when your goods are in transit. “Did we generate the right bill in the eway bill system? Is it valid? What if the officer stops the truck?”

I have been there. At Zubizi, we have helped thousands of businesses streamline their logistics, and I have seen firsthand how confusing the eway bill system can be. But here is the good news: you don’t need to be a Chartered Accountant to master it.

In this guide, I will walk you through everything you need to know about the eway bill system in India. From the basic definition to the latest 2026 updates like Multi-Factor Authentication (MFA), we will cover it all. By the end of this post, you will feel confident managing your logistics documentation.

What is the E-Way Bill System?

The eway bill system is essentially a digital mechanism for tracking the movement of goods under the GST regime. Think of it as a digital passport for your consignment. Before the goods leave your warehouse or factory, you must inform the government about what is being moved, where it is going, and who is transporting it.

Technically, an Electronic Way Bill (E-Way Bill) is a compliance document that must be generated on the common portal prior to the commencement of movement of goods.

The Two Parts of an E-Way Bill

When you generate a bill on the eway bill system, you will see it has two distinct parts:

Part A: This section contains the details of the consignment. It includes the GSTIN of the recipient, place of delivery, invoice or challan number and date, value of goods, HSN code, and the reason for transportation. This part is usually filled by the supplier or the recipient.
Part B: This section contains the details of the transporter. It includes the vehicle number (for road transport) or transport document number (for rail, air, or ship).

The eway bill system ensures that there is a seamless link between the invoice you generated and the vehicle carrying the goods.

Why the E-Way Bill System Matters

You might wonder, “Why do we need another layer of compliance?” The eway bill system was introduced to solve specific problems in the logistics sector:

Eliminating Checkpoint Delays: Before GST, trucks would spend hours at state border checkposts for document verification. The eway bill system has largely removed these physical barriers, allowing for faster movement of goods.
Preventing Tax Evasion: By tracking every major consignment digitally through the eway bill system, the government ensures that goods being transported are accounted for in the GST returns.
Standardization: The eway bill system provides a unified rulebook for the entire country, replacing the complex web of state-specific waybills that existed earlier.

When is an E-Way Bill Mandatory?

Understanding when to interact with the eway bill system is crucial to avoid penalties.

The Threshold Limit

The general rule is simple: You must generate an e-way bill if the value of the consignment exceeds ₹50,000.

This applies to:

Inter-State Movement: Movement of goods from one state to another.
Intra-State Movement: Movement of goods within the same state (though some states have higher limits for intra-state movement).

Who Should Generate It?

The responsibility to generate the e-way bill lies with:

Registered Person: If you are a GST-registered supplier or recipient, you are primarily responsible.
Transporter: If the supplier has not generated the e-way bill, the transporter must do so for road transport if the value exceeds the threshold.
Unregistered Person: If an unregistered person supplies goods to a registered person, the registered recipient must ensure compliance with the eway bill system.

Exemptions: When You Don’t Need It

The eway bill system does have exemptions. You generally do not need an e-way bill if:

The goods are being transported by a non-motorized conveyance (like a hand cart or bicycle).
The goods are exempt from GST (like specific agricultural produce).
The goods are being transported from the port, airport, air cargo complex, or land customs station to an inland container depot or container freight station for clearance by Customs.
The movement is within a notified area (e.g., within 20km from the consignor’s place to the transporter’s weighbridge).

How to Generate an E-Way Bill

Generating a bill on the eway bill system can be done in multiple ways. Let’s look at the most common methods.

Method 1: The Online Portal

This is the standard method for most businesses to access the eway bill system.

Log in to the official eway bill system portal (ewaybillgst.gov.in).
Navigate to the ‘E-Waybill’ tab and select ‘Generate New’.
Select the Transaction Type (Outward for sales, Inward for purchases).
Enter the Document Details (Invoice number, date, etc.).
Fill in the Item Details (Name, HSN, Value, Tax).
Enter the Transporter Details in Part B.
Click Submit.

Once generated, you will get a unique 12-digit E-Way Bill Number (EBN).

Method 2: SMS and Mobile App

For small businesses without constant internet access, the eway bill system allows generation via SMS. You need to register your mobile number on the portal first. Once registered, you can send a formatted SMS to a dedicated number to generate the bill. This is particularly useful for transporters on the road who might not have access to a computer but still need to comply with the eway bill system. Everything from generation to cancellation can be handled via SMS, though it requires remembering specific codes.

Method 3: Integrated Software (The Smart Way)

Manually typing details into the government portal for every invoice is a recipe for errors. This is where modern ERPs come in. At Zubizi, we have integrated the eway bill system directly into your invoicing workflow. You can generate valid e-way bills with a single click right after creating an invoice. This pulls data directly from your invoice, eliminating data entry errors.

This pulls data directly from your invoice, eliminating data entry errors.

E-Way Bill System for Different Transport Modes

While most people associate the eway bill system with trucks, it applies to all modes of transport. The rules differ slightly for each:

By Road

This is the most common use case. You must provide the vehicle number in Part B. The validity of the e-way bill starts as soon as Part B is updated in the eway bill system.

By Rail, Air, or Ship

If you are sending goods via these modes, the eway bill system requires:

Part B: You must enter the Transport Document Number (RR No, Airway Bill No, or Bill of Lading No) and the date.
Who updates it?: The supplier or recipient can update Part B.
Validity: The validity starts from the document date provided.

Crucially, the eway bill system allows the goods to be moved to the transporter’s location (railway station, airport, or port) without updating Part B if the distance is less than 50 km (check your state’s specific limit).

Consolidated E-Way Bill System

What if a transporter is carrying multiple consignments in a single vehicle? Generating and carrying 50 different e-way bills can be a nightmare. The eway bill system offers a solution: Consolidated E-Way Bill (EWB-02).

A Consolidated E-Way Bill is a single document that aggregates multiple e-way bills for a specific vehicle.

Who generates it?: The transporter.
How it works: The transporter logs into the eway bill system, selects the individual e-way bills that are being loaded onto the vehicle, and generates a single Consolidated E-Way Bill number.
Benefit: The driver only needs to carry one document number, simplifying verification by officials.

E-Way Bill Validity Rules

A generated e-way bill is not valid forever. The eway bill system ties validity to the distance the goods need to travel.

Distance	Validity Period
Up to 200 km	1 Day
Every additional 200 km (or part thereof)	+1 Day

Note: For Over Dimensional Cargo (ODC), the limit is 20 km per day.

Example: If your goods need to travel 350 km:

First 200 km = 1 Day
Next 150 km (part of 200) = +1 Day
Total Validity = 2 Days

The validity starts when you update Part B (vehicle details) in the eway bill system.

Critical Updates for 2024-2026

The government has tightened the eway bill system rules significantly in the last year. If you are following old blogs, you might be non-compliant. Here is what changed.

1. Multi-Factor Authentication (MFA)

Security on the eway bill system has been ramped up.

Current Status: Mandatory for taxpayers with turnover > ₹20 Crores.
From April 1, 2026: Expected to be mandatory for ALL taxpayers. You will need an OTP (One Time Password) in addition to your username and password to log in.

2. The 180-Day Rule (Blocking Old Invoices)

This is a major change. The eway bill system now restricts you from generating e-way bills for invoices that are older than 180 days. If you have an invoice dated, say, January 1st, and you try to generate an e-way bill for it on July 15th (more than 180 days later), the eway bill system will block it. This is to prevent the misuse of old invoices for current movements.

3. HSN Code Requirements

The eway bill system now strictly enforces HSN codes:

Turnover > ₹5 Crore: Must use 6-digit HSN codes.
Turnover < ₹5 Crore: Must use 4-digit HSN codes for B2B transactions.

4. Blocking on Non-Filing of Returns

If you have not filed your GSTR-3B for the last two consecutive months (or quarters), your GSTIN will be blocked from generating e-way bills. Compliance with returns is now directly linked to your ability to use the eway bill system.

E-Way Bill System vs. E-Invoice System

These two terms often get confused, but they serve different purposes in the GST ecosystem.

Feature	E-Way Bill System	E-Invoice System
Purpose	To track movement of goods	To authenticate B2B invoices
Trigger	Movement of goods > ₹50,000	B2B transaction (based on turnover)
Platform	`ewaybillgst.gov.in`	`einvoice1.gst.gov.in`
Relationship	Part A is auto-filled from E-Invoice	Generates IRN (Invoice Reference Number)

The best part? If you generate an E-Invoice, the eway bill system can automatically generate Part A of the e-way bill for you, saving you from double data entry.

Blocking and Unblocking of E-Way Bill

The government has linked GST return filing with the eway bill system to ensure compliance.

When does blocking happen?

If a taxpayer fails to file their GSTR-3B or GSTR-1 for two consecutive tax periods (months or quarters), their GSTIN is blocked in the eway bill system.

Consequence: You cannot generate e-way bills as a consignor or consignee.
Who is affected?: It blocks both outward and inward movement generation against that GSTIN.

How to Unblock?

File Pending Returns: File your GSTR-3B/GSTR-1 immediately.
Automatic Unblocking: The eway bill system usually unblocks the GSTIN within 24 hours of filing.
Manual Update: If urgency is high, you can go to the e-way bill portal > Search > Update Block Status to refresh the status instantly after filing.

Common Errors and How to Fix Them

The eway bill system is strict, and even a small typo can lead to a detention. We have analyzed thousands of support tickets at Zubizi to find the most common mistakes users make on the eway bill system. Here is how to fix them.

”Distance Mismatch”

The Issue: You enter the distance between two pincodes, but the system rejects it. The Fix: The eway bill system has a built-in distance calculator. Always use the “Pin to Pin” distance tool on the portal to get the exact government-approved distance.

”Vehicle Number Format Error”

The Issue: The system says “Invalid Vehicle Number”. The Fix: Ensure there are no spaces or special characters. It should be strictly alphanumeric. For example, use “WB01AB1234”, not “WB 01 AB 1234”.

”Invalid HSN Code”

The Issue: You cannot proceed without a valid HSN. The Fix: As mentioned in the updates, check your turnover and ensure you are using the correct 4-digit or 6-digit code.

”Part B Not Updated”

The Issue: You generated the bill but the truck was stopped and fined. The Fix: An e-way bill without Part B is invalid for road movement. Ensure the transporter updates Part B before the vehicle starts moving.

Conclusion

The eway bill system is the backbone of compliant logistics in India. While it might seem strict, it brings a level of transparency that helps fair businesses compete better. By understanding the basics of generation, validity, and the new 2026 rules, you can ensure your goods move smoothly across the country.

Remember, the goal of the eway bill system is to digitalize logistics. The best way to stay compliant is to adopt digital tools yourself. Whether you use the government portal or an integrated solution like Zubizi, staying updated is key.

If you are looking for a way to manage your billing, inventory, and e-way bills in one place, check out Zubizi’s billing software. We make the eway bill system work for you, not against you.