The E-Way Bill (EWB) system plays a crucial role in the transportation of goods under India’s Goods and Services Tax (GST) framework. It ensures transparency in the movement of goods, reduces tax evasion, and streamlines supply chain operations. As we move into 2025, the government has introduced several updates to the E-Way Bill system, including new conditions for its generation and compliance.

What Is an E-Way Bill?

      An E-Way Bill is an electronic document required when goods are transported from one place to another. It must be generated when:

• The value of goods exceeds ₹50,000 (in most cases).
• Goods are being transported by road, rail, air, or water.

The E-Way Bill contains critical details like:

• Invoice number
• Supplier and recipient information
• GSTIN (Goods and Services Tax Identification Number)
• Vehicle number
• Description of goods

Key Conditions for E-Way Bill Generation in 2025

1. Applicability of E-Way Bill

• When Required:
  • Goods worth more than ₹50,000 (per invoice) being transported.
  • Inter-state and intra-state supplies (with different rules for each).
  • Goods being transported by special modes like air or rail.
• Exceptions:
  • Movement of goods for personal use (e.g., household items).
  • Certain exempt supplies under GST (like fresh vegetables, unbranded items).

2. E-Way Bill for Composite and Mixed Supplies

• Composite Supply: If goods are supplied as a package (e.g., a restaurant meal with food and service), the E-Way Bill is generated based on the principal supply.
• Mixed Supply: For bundles like a gift basket with different items, the E-Way Bill will include all items, and the highest GST rate applies.

3. Validity Period of the E-Way Bill

• By Road: Valid for 1 day for every 100 km of distance.
• By Rail/Air/Water: Valid for 3 days (extendable in case of delays due to unforeseen circumstances).
• Extension: E-Way Bills can be extended before expiration if the goods are still in transit.

4. Mandatory Multi-Factor Authentication (MFA)

     Starting in 2025, businesses with a turnover above ₹20 crore must enable Multi-Factor Authentication (MFA) for accessing the E-Way Bill portal. This enhances security and prevents unauthorized access.

Common Mistakes to Avoid

• Incorrect GSTIN: Always verify the GSTIN of the supplier and recipient.
• Wrong Vehicle Details: Update vehicle details if there’s a change during transit.
• Delayed E-Way Bill Generation: Generate the bill before the movement of goods to avoid penalties.
• Incorrect Tax Rates: Apply the correct GST rate based on the type of goods.

Conclusion

       The E-Way Bill system in 2025 comes with new conditions designed to make the transportation of goods more secure, efficient, and transparent. While the updated rules may seem complex, they are intended to reduce fraud, improve compliance, and streamline supply chains.

By understanding these conditions and implementing best practices, businesses can avoid penalties and ensure smooth operations throughout the year.