New Time Limit for E-Way Bill Generation and Extension

A taxpayer registered under GST must generate an e-way bill while transporting goods exceeding Rs.50,000 in a single invoice/bill/delivery challan. It can be generated by the consignor/consignee or the transporter before the movement of goods. But what if the vehicle breaks down during the transit? Do you require a new e way bill, or can you extend its validity?

Read and find out!

Latest Updates

18 December, 2024

1. The government, via an advisory dated 17 December 2024, clarified that a taxpayer would only be able to generate e-way bills for documents dated no earlier than 180 days. For instance, invoices dated earlier than 5 July 2024 will not be eligible for e-way bill generation from 1 January 2025.
2. Also, one can extend the validity of an e-way bill up to 360 days from its original generation date. For example, an e-way bill generated on 1 January 2025 can only be extended until 25 December 2025.

The above changes will be made effective from 1 January 2025.

E-Way Bill Validity Period

An e-way bill's validity depends on factors like the type of transport and pin-to-pin distance travelled. The consignor must know the distance between the place of origin and the place of delivery of the consignment because the longer the distance, the higher the validity of the e way bill.

The consignor has two options:

1. He can either calculate the approximate distance between the source and destination location before generating the e way bill or
2. He can use the free tool provided by the e way bill official portal for pin-to-pin distance calculation.

Once the type of transport and distance are calculated, the system will generate the e-way bill based on the following rule:

Time Limits for E-Way Bill Generation

The e-way bill has two parts, i.e., parts A and B. 

• Part A requests details such as the recipient's GSTIN, place of delivery, invoice or challan number and date, HSN code, value of goods, transport document number (Goods Receipt Number in the case of road transport), and reasons for transportation.
• Part B comprises transporter details (Vehicle number and transporter ID). Part B, containing transport details, is used to generate the e-way bill. Filling out Part B of the e-way bill is necessary for the movement of the goods. Also, the validity of e-way bills begins when Part B is entered. This means a taxpayer had to fill out part B and generate an e-way bill within 180 days of the invoice date.

Let's understand with the help of an example:

If supplier A enters into a transaction with recipient B that involves transporting goods worth Rs.51000 from Ahmedabad, Gujarat to Bangalore, Karnataka on 5 July 2024.

Supplier A did not know the recipient's exact location, so he filled out Part A and asked the recipient to fill out Part B details and generate an e-way bill. Recipient B has to fill in the details of Part B at least by 1 January 2025 in order to get the goods delivered because the validity of e-way bills begins when Part B is entered. They cannot delay generating the e-way bill by more than 180 days.

Time Limits for E-Way Bill Extension

In case of disruptions like natural disasters, bad weather, or vehicle breakdowns, the e-way bill can be extended to accommodate delays, ensuring smooth transport without penalties. The person generating the e-way bill will have the option to extend the validity either eight hours before expiry or after eight hours after its expiry up to 360 days from their original date of generation.

Penalties for Expired or Invalid E-Way Bills

If the goods are not delivered within the validity period, the e-way bill is said to have expired. An expired e-way bill is considered invalid, and the transportation of goods without a valid e-way bill is regarded as a contravention of GST law. Transporting goods without a valid e-way bill can attract penalties, including: 

• A fine of Rs.10,000 or the tax sought to be evaded (whichever is higher). 
• Goods and vehicles may be detained or seized by the GST authorities, leading to delays and potential legal complications.

Though these changes aim to enhance transparency and reduce misuse of outdated EWBs, but they are going to bring significant compliance risks for businesses. Failure to meet these tighter timelines could disrupt shipments, delay operations, and incur penalties. To avoid non-compliance, businesses must partner with ClearEWayBill to ensure their internal systems can efficiently manage invoice and EWB timelines.

Read more:
How to Generate E Way Bills?
2-Factor Authentication in e-Invoice System/e-Way Bill
Step-by-Step Process to Generate an e-Invoice and IRN