Are you wondering what an E-way bill is? The E-way bill is a very important compliance document used in the GST regime when the goods are moving worth above ₹50,000. As a supplier, recipient, or transporter, it is important to be aware of E-way bill validity, E-way bill validity time, and the effect of E-way bill distance on validity for the continuous movement of goods, and ensure that no fines are imposed.
The E-way bill system requires that the movement of goods be done with an authentic E-way bill, and its validity is regulated by the particular provisions of the law of GST.
This blog tells you all you need to know about the validity of the E-way bill, how to extend E-way bill validity, E-way bill distance, and E-way bill rules.
The validity of an E-way bill is the duration during which the E-way bill is considered valid once it is generated. The validity period starts on the very date and time of generation of an E-way bill and depends on the distance between the point of origin and the destination of the consignment. In case the goods are moved without an E-way bill, it is deemed to be non-compliant and is subject to penalties under the GST Law.
E-way bill validity is determined depending on two major aspects:
1. Distance Between Locations
In the case of regular goods (non-over-dimensional cargo):
As an example, the E-way bill will be used up to 3 days (1 day for the first 200 km + 1 day for the second 200 km + 1 day for the remaining distance) if the distance between the dispatch and delivery points is 450km.
2. Type of Cargo
In the case of over-dimensional cargo (ODC), the dimensions of goods that are larger than normal transport dimensions, the regulations are granular:
These calculations ensure the validity time is the realistic time of travel and prevent early expiration in long journeys.
The distance is a key factor in the determination of the E-way bill validity time. When the E-way bill is generated, the approximate distance of the locations between the supplier and the recipient should be entered. This distance may be specified in two ways:
The Portal Auto Calculation.
The E-way bill portal can automatically compute the distance based on the PIN codes typed in for the source and destination. This calculated distance is used as a validity reference. Most systems allow the user to adjust the distance at a 10% margin above the one calculated automatically, if required.
User-Entered Distance
If the actual distance differs from the portal figure due to a change in routes, the transporter or generator can send a realistic distance, within the constraints of the system. Once an E-way bill is created, the distance cannot be altered, unless you extend the validity of the bill.
The most valuable lesson is that distance is the determining factor of the time of E-way bill validity, and proper filling of location information prevents compliance problems
Pro Tip: Correctly entering distance and PIN codes ensures compliance and avoids penalties. For detailed calculations, you can refer to the pip-to-pin distance in GST.
Here’s a simple chart to help you quickly understand how E-way bill validity is calculated:
For over-dimensional cargo (ODC):
These charts help exporters, transporters, and logistics partners plan shipments and timelines efficiently.
You don’t have to worry if the transport of a consignment has been delayed by circumstances outside your control, such as vehicle breakdown, traffic congestion, or a natural disaster. There is a way out. You can extend the E-way bill validity under certain conditions:
E-way bill validity can be extended when:
You request to extend the e-way bill within a window of 8 hours before or after the original expiry time.
This short time frame provides you with adequate time to request an extension.
The e-way bill may be extended by:
1) The person or company that generated the e-way bill.
2) The transporter currently transporting the goods.
To extend the e-way bill, complete the following steps:
Once submitted, the same E-Way Bill remains valid with the newly extended validity period.
A request to extend the validity may only be made within the time frames listed above.
There is no limit to how many times the e-way bill validity may be extended as long as the request is made in the appropriate time frames.
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To properly manage the transport of goods under the GST regime, it is important to know about the E-way bill validity and rules. All goods and Service tax supplies are required to have valid E-way Bills to avoid penalties for compliance issues.
By accurately entering the PIN codes of the place of origin and destination and ensuring you make any requests to extend your E-way bill before expiration, you can improve your ability to plan and manage the transport of your goods efficiently.
No matter if you are a supplier generating an E-way bill, a transporter driving on the road, or a recipient tracking the movement of goods, a clear understanding of the E-way bill’s validity can help in more effective planning, compliance, and fewer disruptions to your supply chain. Therefore, always generate E-way bills and request extensions in accordance with all timelines established in order to avoid incurring any penalties to maintain a smooth operation of your supply chain.
1. Can the validity of an e-way bill be extended once it has expired?
Yes, the validity of an E-Way Bill may be extended within 8 hours before/after the expiry time as long as a reason has been entered into the Portal.
2. Will the Portal calculate the distance automatically?
Indeed, the portal will automatically calculate the distance using the Origin and Destination PIN Code, and it will provide a margin adjustment feature.
3. Are the rules for validity different for movements within a State as opposed to movements between States?
No. The rules governing the validity of an E-Way Bill are the same for both types of movements.
4. After generating an E-Way Bill, can the validity of the E-Way Bill be modified?
Once an e-way bill has been generated, the distance and the Origin information cannot be modified. However, the validity of an E-Way Bill can still be extended if necessary.