E-Way Bill

An e-way bill is an electronic waybill generated on the GST e-way bill portal (ewaybillgst.gov.in) that must accompany the physical movement of goods worth more than INR 50,000, including all consignments supplied to government departments, PSUs, and local bodies.

What is an E-Way Bill?

Under Rule 138 of the CGST Rules 2017, an e-way bill is required for the inter-state and intra-state movement of goods when the consignment value exceeds INR 50,000. For government procurement, this means any delivery of materials, equipment, or supplies to a government site must be accompanied by a valid e-way bill.

Key features:

• Generation: The e-way bill is generated by the supplier, transporter, or recipient on the GST e-way bill portal. The portal returns a unique E-Way Bill Number (EBN) and a QR code that must be printed on the delivery challan or invoice copy.
• Validity: E-way bill validity depends on the distance. For up to 200 km, validity is one day. For every additional 200 km or part thereof, one additional day is allowed. Over-dimensional cargo has longer validity.
• Consignment value: The consignment value includes the assessable value plus applicable GST, but excludes GST where the supplier is providing an exempt supply.
• Extension: If goods cannot reach the destination within the validity period due to breakdown, natural calamity, or trans-shipment delays, the e-way bill can be extended before it expires.
• Government supply exemptions: Certain goods movements are exempt from e-way bill requirements, including some agricultural produce, defence supplies under specific conditions, and government currency transfers. Suppliers should verify whether their commodity is exempted.

For government contracts, the delivery process typically requires:

1. E-way bill generated and attached to the delivery challan.
2. Goods inspected and accepted by the designated stores officer or project engineer.
3. Material Received Report (MRR) or inspection note issued.
4. E-way bill number recorded in the MRR for audit purposes.

Why the E-Way Bill matters for Indian government suppliers

Government stores departments and project sites conduct strict document verification at entry. A consignment arriving without a valid e-way bill can be detained by tax authorities in transit or refused entry at the government site. This causes delivery delays that can trigger late delivery penalties under the contract's Liquidated Damages clause. Suppliers managing deliveries to multiple government sites across state lines must track e-way bill expiry dates carefully and plan logistics so that every consignment arrives within its validity window.

Example

A transformer manufacturer wins a state electricity board tender and schedules delivery of a 50 MVA power transformer worth INR 2.5 crore from its factory in Gujarat to a substation in Rajasthan. The supplier generates an e-way bill for inter-state movement on the GST portal, receives an EBN valid for 13 days (2,500 km / 200 km per day), prints it alongside the tax invoice and delivery challan, and dispatches the consignment. The electricity board's stores officer scans the QR code on delivery, verifies the e-way bill, and accepts the transformer.

Frequently Asked Questions

Who is responsible for generating the e-way bill in a government supply contract?

The supplier is primarily responsible for generating the e-way bill before the goods leave the factory or warehouse. However, the transporter can generate it if the supplier has not done so, and in some cases the recipient (the government buyer) may generate it for return movements.

Is an e-way bill required for services supplied to the government?

No. E-way bills apply only to the movement of physical goods. Service contracts, including consultancy, IT services, and maintenance services, do not require e-way bills.

What is the penalty for moving goods to a government site without a valid e-way bill?

Tax authorities can detain the goods and impose a penalty equal to the tax applicable on the goods or INR 10,000, whichever is higher, under Section 129 of the CGST Act. The consignment can be released only after payment of tax and penalty.

Does the e-way bill replace the delivery challan?

No. The e-way bill is a separate electronic document that accompanies the delivery challan. Both documents must be present at the time of delivery. The GST invoice is the tax document; the delivery challan is the delivery acknowledgement document; the e-way bill is the goods movement authorisation.