e-Way Bill Rejected? Here’s What Went Wrong and How to Fix It

Published on: 16-05-2025

 e-Way Bill Rejected? Here’s What Went Wrong and How to Fix It

The e-Way Bill system, introduced under the Goods and Services Tax (GST) regime in India, plays a critical role in ensuring seamless movement of goods and reducing tax evasion. It is mandatory for any interstate or intrastate movement of goods valued over ₹50,000. While the system has brought transparency, many businesses face challenges in complying with its requirements. One of the key concerns is the rejection of e-Way Bills, which can lead to delays, penalties, and complications in logistics operations.

Understanding the common reasons for rejection and how to resolve or prevent them is essential for smooth business operations. This article explores the main causes of e-Way Bill rejections and provides actionable resolutions.

1. Incorrect or Mismatched Information

Issue:

One of the most common reasons for rejection is discrepancy between the e-Way Bill and the actual invoice or goods being transported. This includes mismatched invoice numbers, incorrect HSN codes, product descriptions, or incorrect values.

Resolution:

• Always ensure the details in the e-Way Bill match the invoice precisely.
• Use automated software or integrated GST-compliant billing systems to avoid manual errors.
• Cross-verify all data before submission, especially critical fields like:
  • Invoice number
  • Consignor/consignee GSTIN
  • HSN code
  • Quantity and value of goods
  • Place of delivery

2. Expired e-Way Bill

Issue:

Each e-Way Bill has a specific validity period based on the distance to be traveled. If goods are not delivered within this period, the e-Way Bill becomes invalid and may be rejected during checks.

Resolution:

• Estimate the transit time realistically based on distance and mode of transport.
• If delays are anticipated (due to weather, strikes, etc.), use the “Extend Validity” feature before the e-Way Bill expires.
• Train your logistics team to monitor e-Way Bill validity proactively.

3. Duplicate Generation of e-Way Bills

Issue:

Creating multiple e-Way Bills for the same consignment can lead to confusion and possible rejection during inspection.

Resolution:

• Avoid generating multiple e-Way Bills for the same invoice unless a correction is needed.
• Cancel the incorrect one within 24 hours if an error is discovered.
• Maintain records of generated and canceled e-Way Bills for audit purposes.

4. Vehicle Number Not Updated or Incorrect

Issue:

The vehicle number must be updated on the e-Way Bill portal once the goods are loaded. An incorrect or missing vehicle number can result in rejection during transportation checks.

Resolution:

• Ensure transporters update the vehicle number before starting the journey.
• If there is a change of vehicle due to breakdowns or transfers, use the “Update Vehicle Number” option on the portal.
• Educate transport personnel about the importance of correct vehicle entry.

5. Transporter Rejection

Issue:

The transporter has the option to accept or reject the e-Way Bill assigned to them by the consignor. If the transporter rejects it, the e-Way Bill becomes invalid.

Resolution:

• Always coordinate with the transporter before assigning the e-Way Bill.
• Use reliable and GST-compliant transport services familiar with the e-Way Bill system.
• If rejected, regenerate the e-Way Bill with correct details or assign it to the correct transporter.

6. Improper Documentation During Transit

Issue:

Sometimes, the rejection arises not due to the e-Way Bill itself but due to lack of physical documents during transport. Transporters must carry a copy of the e-Way Bill (printed or electronic) and invoice.

Resolution:

• Ensure the driver carries:
  • Invoice or bill of supply
  • Copy of the e-Way Bill (physical or e-copy)
• Use RFID devices and real-time tracking, if applicable, to comply with movement rules.

7. Incorrect Distance or Route

Issue:

Furnishing an unrealistic or incorrect distance (too short or too long) between source and destination can trigger suspicion and may lead to rejection or questioning during inspections.

Resolution:

• Use the system’s auto-calculated distance feature based on PIN codes.
• Only edit the distance if absolutely necessary and within allowed limits.
• Avoid arbitrary manual entries.

8. Failure to Generate e-Way Bill When Required

Issue:

Sometimes businesses mistakenly believe an e-Way Bill is not needed for certain movements or underestimate the value of goods. Transport without an e-Way Bill when required is considered non-compliance.

Resolution:

• Familiarize yourself with the threshold limits and exceptions under GST.
• Use automated alerts in your ERP system to prompt e-Way Bill generation when applicable.
• Maintain transparency with tax authorities by generating e-Way Bills even for borderline-value consignments.

9. Technical Errors or Portal Issues

Issue:

Sometimes the e-Way Bill is rejected due to technical issues on the portal, server errors, or data sync problems with the GST network.

Resolution:

• Retry submission after some time if a system error occurs.
• If the issue persists, contact the GST Helpdesk or file a grievance on the portal.
• Keep screenshots or acknowledgment of errors for recordkeeping and proof in case of scrutiny.

10. Improper Cancellation and Regeneration

Issue:

If you realize an error after generating an e-Way Bill and cancel it, but do not regenerate a new one properly, this may lead to rejection during transport.

Resolution:

• Use the “Cancel e-Way Bill” feature within the allowed 24-hour window.
• Always regenerate a new, correct e-Way Bill immediately after cancellation.
• Track all cancellations and regenerated documents internally.

Best Practices to Avoid e-Way Bill Rejections

1. Use Integrated Software:
   • Invest in a GST-compliant ERP or billing system that automates e-Way Bill generation and reduces manual errors.
2. Regular Staff Training:
   • Conduct workshops and refresher training sessions for your accounts, logistics, and transport staff.
3. Audit and Review:
   • Conduct internal audits to ensure e-Way Bills are generated, updated, and cancelled properly.
4. Keep Track of Expiry:
   • Set alerts or use dashboard monitoring tools to track validity and renewals.
5. Monitor Transporter Compliance:
   • Work with transporters who understand the GST requirements and have good compliance records.
6. Maintain Clean Records:
   • Keep digital and physical copies of all invoices, e-Way Bills, and related documentation for reference.

Conclusion

The e-Way Bill system is a powerful tool for streamlining tax compliance and goods movement across India. However, rejections due to minor errors or oversights can disrupt operations, cause financial penalties, and invite legal scrutiny. By understanding the reasons behind rejections and proactively addressing them through robust systems, training, and compliance practices, businesses can avoid unnecessary hurdles.

Emphasizing accuracy, timeliness, and accountability is the key to mastering the e-Way Bill process and ensuring a smooth flow of goods in your supply chain.