The E-Way Bill (EWB) system continues to be a critical compliance requirement in GST, especially for businesses involved in the movement of goods. Under Rule 138 of the CGST Rules, an EWB must be generated for goods exceeding the prescribed value threshold before they are moved. Even small errors in the EWB can result in the movement being treated as “without a valid E-Way Bill,” which then attracts heavy penalties under Sections 122, 129 and 130 of the CGST Act.

To help businesses stay compliant, here are the seven most common E-way Bill mistakes highlighted along with the actual e-way bill penalties that apply under GST law.

1. Transporting Goods Without Generating an E-Way Bill

This is the most serious form of non-compliance. If goods above the threshold value are moved without an EWB, authorities treat the movement as unauthorised.

Penalty under GST:

Detention and seizure under Section 129. If the owner comes forward, the penalty is 200% of the tax payable. If the owner does not come forward, the penalty is equal to 50% of the value of goods (minus tax paid). In severe cases, confiscation under Section 130 may apply.

2. Incorrect or Mismatched Information in the EWB

E-way bill mistakes and errors in key fields such as GSTIN, vehicle number, invoice number, HSN code or value can render the EWB invalid. Even a minor mismatch between the invoice and E-way Bill may be viewed as an attempt to misrepresent the consignment.

Penalty under GST:

If the EWB is considered invalid, the movement is treated as without an EWB, leading to penalties under Section 129 (detention, tax and penalty). If the discrepancy indicates misreporting, Section 122(1)(i) may apply, imposing a penalty of ₹10,000 or the amount of tax involved, whichever is higher.

3. E-Way Bill Expired During Transit

E-Way Bills come with specific validity based on distance. If the vehicle is delayed and the EWB expires during movement, the consignment is treated as being moved without a valid EWB.

Penalty under GST:

Once expired, Section 129 penalties apply. Goods and conveyance can be detained, and the business must pay tax plus penalty for release.

4. Mismatch Between Invoice and EWB Details

A common error is when the invoice shows one value, quantity, HSN code or destination, while the EWB reflects something different. Officers often check for consistency during roadside verification.

Penalty under GST:

Section 122(1)(ii) and 122(1)(iii) may apply for incorrect documentation, attracting a minimum penalty of ₹10,000 or the tax amount. In serious cases or clear discrepancies, Section 129 detention may also apply.

5. Not Updating Part B (Vehicle Details) Before Movement

Part A contains invoice details, but Part B contains transporter and vehicle information. If Part B is not updated before dispatch, the EWB is considered incomplete and invalid.

Penalty under GST:

Incomplete or missing Part B makes the EWB invalid. Movement is treated as without an EWB, and Section 129 penalties apply.

6. Not Cancelling a Wrong EWB Within 24 Hours

Rule 138(9) allows cancellation of an EWB within 24 hours if goods are not transported or if details were entered incorrectly. Many businesses forget to cancel faulty EWBs, which remain active in the system.

Penalty under GST:

If goods move on an incorrect EWB, Section 129 applies with full detention and penalty. Even if goods do not move, failure to cancel incorrect EWBs may create issues during audits, scrutiny or departmental checks.

7. Not Updating the EWB When Vehicle Changes Mid-Transit

During long-distance movement, a change in vehicle or transporter is common. However, if this change is not updated immediately in the EWB portal, the bill becomes invalid for the remaining journey.

Penalty under GST:

Movement in a different vehicle without updating the EWB is treated as unauthorised movement. Section 129 penalties apply, and repeated violations may even trigger confiscation proceedings under Section 130.

Why These Mistakes Are Risky Even Without Intent

GST officers evaluate not just the mistake but also the intention. While minor clerical mistakes without malafide intent may attract lenient views in some cases, the law allows officers to levy strict penalties if the movement appears suspicious or non-compliant. This is why ensuring accuracy in every aspect of E-Way Bill generation and updating is essential for businesses in 2026.

How Businesses Can Avoid These E-way Bill Mistakes

To ensure smooth movement of goods and avoid heavy GST penalties, businesses should adopt disciplined procedures. Here are some recommended practices:

• Always assess consignment value before dispatch — if above threshold (or combined value of multiple invoices exceeds threshold), generate EWB before loading.
• Use a checklist for data entry (invoice number, HSN code, GSTIN, consignee/supplier address, vehicle number, transporter details). Preferably double-check manually or via system before finalizing.
• Update Part B before starting transport — don’t rely on provisional/future vehicle details.
• For long journeys with multiple legs or potential vehicle/ transporter change — plan ahead: update EWB promptly when any change happens.
• If an EWB is generated in error or for a consignment that doesn’t move, cancel it within 24 hours.
• Before dispatch, reconcile invoice and EWB details — especially if the invoice was revised after EWB generation.
• Track and monitor transit time vs EWB validity — especially for long distance or interstate transport. Renew or re-generate as required before expiry.
• Train all involved teams be it logistics, accounts, transporter on EWB compliance requirements — simple awareness can prevent many clerical errors.

Conclusion

E-Way Bill errors are among the most common GST compliance issues faced by Indian businesses. Even a small mismatch can lead to detention, financial loss and penalties under Sections 122, 129 and 130. By understanding these common mistakes and following the rules under the EWB system, businesses can protect themselves from costly penalties and ensure smooth movement of goods.

Try IRIS GST’s E-Way Bill Management System

With our E-way Bill Solution – IRIS GST Topaz, plan and manage your E-way Bills in an easy and automated way, on the go!
It is designed to cater to the needs of suppliers, consignors and transporters alike, by enabling the creation of a business hierarchy and role/E-way bill assignment to mimic your sales and dispatch processes.