# E-Way Bill — Concept and Trigger

## What is an E-Way Bill?

A traditional 'way bill' is a transport document issued by a carrier showing consignor, consignee, origin, destination etc. GST replaces it with an electronic document generated on the GST e-way bill portal in Form GST EWB-01 that records every movement of goods.

The e-way bill is the government's tool to track inter-state and intra-state movement of goods in real time and curb tax evasion through under-reporting.

## When is an E-Way Bill Required?

### (A) Movement by a Registered Person

A registered person who causes movement of goods of consignment value > ₹ 50,000 must generate an e-way bill before commencement of movement in any of the following situations:

In relation to a supply
For a reason other than supply (e.g., job work, exhibition)
Due to an inward supply from an unregistered person

### (B) Mandatory Regardless of Value

E-way bill is compulsory regardless of consignment value for:

Inter-state transfer of handicraft goods by a person exempted from registration.
Inter-state movement of goods for job work (principal-to-job-worker / job-worker-to-job-worker).

## Meaning of 'Consignment Value'

Includes: GST charged in the invoice.
Excludes: Value of exempt supplies, if invoice covers both taxable and exempt goods.
Where movement is for a reason other than supply (no invoice), the value in the delivery challan is taken as consignment value.

Worked example

### Example 1

Example (i) — Mr. Ram (Mixed Consignment)

Mr. Ram dispatches in one vehicle:

Taxable goods (18% GST) of value ₹ 25,000.
Exempt goods of value ₹ 28,000.

Consignment value = ₹ 25,000 × 1.18 = ₹ 29,500 (exempt supply value is excluded).

Since ₹ 29,500 < ₹ 50,000, no e-way bill is required.

### Example 2

Example (ii) — Mr. Raju (Non-supply Movement)

Mr. Raju moves goods within the same state for a reason other than supply on a delivery challan of value ₹ 45,000.

Consignment value = ₹ 45,000 (challan value).

Since ₹ 45,000 < ₹ 50,000, no e-way bill is required.

⚠️ Common exam mistakes

Including exempt supply value while computing consignment value — exclude it.
Excluding GST from consignment value — it must be included.
Generating e-way bill AFTER movement begins — it must be generated BEFORE movement.
Forgetting that inter-state movement of handicraft goods by unregistered persons requires e-way bill regardless of value.
Using invoice value when movement is for a reason other than supply — should use delivery challan value.

Reference:

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E-Way Bill — Concept and When Required

Worked example

⚠️ Common exam mistakes