Top Reason For E-Way Bill Rejection Introduce e-way bill to track and control goods movements under Goods and Services Tax (GST). However, in reality, many e-way bills are rejected due to small mistakes, leading to penalties, delays and unnecessary burdens. In this article, we will understand the reasons for e-way bills rejection. What Is an E-Way Bill? The e-way bill is an online (digital) document that is generated on the Goods and Services Tax (GST) portal when goods are transpoted from one location to another location.
In simple meaning:
When goods move on the road, e-way bills become their identity card.
If the bill is not valid or contains incorrect information, it may lead to penalties.
When is an e-way bill mandatory? Generating a E-way bill is compulsory when:
The value of goods is more than Rs 50,000
Goods are in inter-state movement (from one state to another state)
The e- way bill is required for inter-state movement in certain cases
Goods are moved for any purpose such as :
Sale
Stock transfer
Job work
Goods return
Branch transfer
Who can generate e- way bills? Supplier: When the supplier is registered and they dispatch the goods.
Recipient: When supplier is unregistered.
Transporter: When the supplier or recipient does not complete Part-A or add vehicle details later.
YOU SHOULD LEARN - Can You Generate an E-Way Bill Without a GST Number
What is the main objective of e-way bills? There are some clear objectives:
To control tax evasion
To ensure proper tracking of goods movements
To stop fake invoicing and illegal transport
To increase transparency and discipline in the GST system.
Know the Reason of E-way Rejection 1 Incorrect GSTIN Details: The biggest reason for e-way bill rejection is incorrect GSTIN entry.
Incorrect GSTIN for supplier or recipient
Minor typing errors
Use of cancelled or inactive GSTIN.
The GST portal validates the GSTIN automatically. If the GSTIN is not valid, the e-way bill will also be invalid and can be rejected.
2 Invoice and E-way Bill Data Mismatch: It is mandatory to have consistency in invoice and e-way bill data. If both details do not match, then there is a high chance of rejection.
Common mismatch include;
Differences in invoice data
Invoice number mismatches
Taxable value and GST amount difference
At the time of checking, the GST officer verifies the invoice and e-way bill. If they find a mismatch, they can stop the goods in transit .
3 Wrong HSN Code or Improper Goods Description: Do not take the HSN code and goods description lightly, as it is a serious compliance mistake.
Mentioning an incorrect HSN code
Using generic description such as “goods”, “items” or “materials”
Mismatch between HSN code and actual goods nature.
4 Invalid or Incorrect Vehicle Number: It is mandatory to have the correct vehicle detail mentioned in Part-B is mandatory. If the vehicle number is wrong, then the e-way bill becomes practically ineffective.
Common vehicle related errors:
Missing state code
Falling to update details after changing the vehicle
Typing or format mistake.
5 Expired E-way Bill: E-way Bill validity are distance based:
Previously limited to 200 km
Additional validity for additional details
If the goods are delivered late and the e-way bill expires, it is a clear GST violation. Traffic delays and vehicle breakdowns are generally not acceptable reasons.
6 Distance and Transit Time Mismatch: The E-way bill automatically calculates expected transit time. Issues arise when;
The entered distance is low, but the actual route is large.
The selected route is unrealistic
Goods movement appears illogical and suspicious.
7 Duplicate E-way Bill For the Same Invoice: Generating multiple e-way bills for the invoice creates compliance risks.
Generating the same e- way bills for an invoice number
Not generating fresh e-way bills properly after cancelling previous ones.
8 Cancelled Invoice But Active E-way Bill: If the invoice has been canceled but the e-way bill is still active and goods are moving, this is a serious non- compliance.The department perceives this situation as:
Goods movements are invalid or fake
Due to this e-way bill can be rejected and penalty also.
9 Transporter ID Error: Transporter related mistakes can also become the reason of e- way bill rejection.
Transporter’s GSTIN inactive
Mention wrong transporter if
Authorization mismatch.
10 Part -B Not Updated properly: Only generating Part- A and dispatching the goods it's against the GST rules.
Common Part-B Mistakes:
Part-B is not updated after changing the vehicle.
Incomplete updates in multiple vehicle movements.
Reason Why It Happens How to Avoid Wrong GSTIN GSTIN is typed incorrectly or is inactive Always verify GSTIN before generating e-way bill Invoice Mismatch Invoice details and e-way bill details do not match Check invoice details carefully before entry Wrong HSN Code Lack of proper knowledge about HSN codes Use the updated HSN code list Vehicle Number Error Vehicle number entered wrongly in Part-B Enter vehicle number exactly as per RC Expired E-way Bill Delay in transportation of goods Track validity and plan transit properly Distance Mismatch Wrong distance entered in e- way bill Check approximate distance using Google Maps Duplicate E-way Bill Poor invoice and record management Maintain invoice wise e-way bill records Cancelled Invoice Invoice cancelled but e-way bill not cancelled Cancel e-way bill immediately after invoice cancellation Transporter ID Error Transporter details are not verified Use only authorised and active transporters Part-B Missing Vehicle details not updated Update Part-B before starting goods movements
Conclusion The main reason for e-way bill rejection is not complicated GST rules, it's small mistakes that are avoided. If you correct the basic information such as ,GSTIN, invoice details, and HSN code, then easy maximum rejections can be avoided.
FAQ 1 If the e-way bill expires then what procedure should be followed? If the validity of e-way bill has expired, then transporting goods on the basis of that e-way bill is considered a GST violation. In such a situation, it's essential to generate a new e- way bill before moving the goods.
2 What to do if there is a change of vehicle during transit? If a vehicle changes hands during transit such as due to breakdown, transshipment, or a route change there's no need to cancel the e-way bill. In this case, updating the new vehicle number in Part-B is mandatory. If the Part-B is not updated at the time of checking the vehicle details do not match then e- way bill can be considered invalid.
3 What is the time limit of e- way bill cancellation? Limited time window is available for cancelling a e- way bill, which is counted at the time of generating. If the goods have been transported or movement has started, the cancellation of an e- way bill is not allowed. If the e- way bill is generated wrong then immediate cancellation is the best option.
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