How is an e-way bill cancelled?
An e-way bill is cancelled on the e-way bill portal within 24 hours of generation, and only when the goods were not transported, or were not transported as the bill states. A bill that has been verified in transit cannot be cancelled.
No. Rule 138 says an e-way bill cannot be cancelled after it has been verified in transit.
When can it be cancelled?
Rule 138 allows the cancellation where the goods are not transported, or are not transported as the details in the bill. The cancellation is electronic, on the common portal, within 24 hours of generation. Verification in transit closes that option. Generation allots an e-way bill number to the supplier, the recipient, and the transporter. Cancelling the bill does not cancel the tax invoice.
Who can extend the validity?
The current transporter extends the validity. If no transporter is assigned, the person who generated the bill extends it. The rule allows the extension within eight hours after the validity ends. The portal also accepts the request in the eight hours before the validity ends. The reason is an exceptional one, such as trans-shipment delay or an accident of the vehicle, and Part B is updated. The distance rule that sets the original validity is on the e-way bill page.
Which value made the bill necessary?
The central rule requires a bill when the consignment value is above ₹50,000. A state may notify a different value for a movement that starts and ends inside that state. A floor of ₹1,00,000 is not the central rule. A pure service has no goods to move and needs no bill. Registration of the supplier is on the GST registration page.
What if the goods move without a valid bill?
Goods moved in contravention of the rules can be detained under section 129. Where the owner comes forward, the penalty on taxable goods is 200 percent of the tax payable. Exempt goods have a smaller penalty, capped at ₹25,000. That is the detention rule. It is not a flat fine equal to the tax, and it is not an automatic confiscation after seven days.
Frequently asked questions
Four questions cover a verified bill, the 24 hours, the value, and an extension.
Can a verified bill be cancelled?
No. Rule 138 says an e-way bill cannot be cancelled after it has been verified in transit.
Is the cancel window longer than 24 hours?
No. The cancellation is made on the portal within 24 hours of generation.
Does a ₹1 lakh floor replace the rule?
No. The central rule uses a consignment value above ₹50,000. A state may set a different value only for a movement inside that state.
Who extends a bill that is about to expire?
The current transporter extends it. If no transporter is assigned, the person who generated the bill extends it.
Sources
Cancellation and validity are in rule 138 of the CGST Rules. The portal is the government’s e-way bill system. Detention is section 129 of the CGST Act, which the e-way bill guide states.