02/07/2026
GST COMPLIANCE ALERT
E-Way Bill Changes Effective 1st August 2026
Mandatory Ship-To GSTIN | New EWB Closure Facility
⚡ KEY HIGHLIGHTS
• Effective Date: 1st August 2026 (extended from 15th June 2026)
• Change 1: Ship-To GSTIN is now MANDATORY for all Bill-To/Ship-To e-Way Bills
• Change 2: New voluntary EWB Closure Facility introduced — delivery confirmation in the portal
• For Unregistered Locations: Enter 'URP' (Unregistered Person) in the Ship-To GSTIN field
• Risk: Mismatch in Ship-To GSTIN can trigger detention under Section 129 / Section 130 of CGST Act
• ERP/API Users: Software must be updated and tested before 1st August 2026
1. Background & Why This Change Was Made
The GSTN issued an advisory (dated 21st May 2026) introducing two important changes to the e-Way Bill (EWB) system. These changes were originally to take effect from 15th June 2026, but GSTN has since extended the deadline to 1st August 2026 to allow businesses and ERP vendors more time to prepare.
The update addresses two long-standing gaps in the e-Way Bill system:
• Incomplete 'Ship-To' data: In multi-location supply chains, goods are often invoiced to one party but delivered to a project site, warehouse, or third-party location — with no GSTIN recorded. This created audit trail gaps, and GSTN could not accurately cross-verify EWB data against GSTR-1 and GSTR-3B.
• Open EWBs after delivery: Once goods were delivered, the e-Way Bill stayed active in the system until its validity expired. There was no delivery confirmation step — cancelled invoices, failed deliveries, and completed transactions all had active EWBs floating in the portal with no closure record.
2. What Is a Bill-To / Ship-To Transaction?
A Bill-To/Ship-To transaction occurs when:
• Company A supplies goods to Company B (the buyer / billing party), but
• Company B directs delivery to Company C (a different physical location).
Example: A manufacturer's head office places an order (Bill-To), but the goods are delivered to their factory or warehouse (Ship-To). Under Section 10(1)(b) of the IGST Act, 2017, the Bill-To party is deemed to have received the goods. The invoice carries the buyer's GSTIN, and the delivery address is separately captured in the 'Ship-To' section of the e-Way Bill.
The Ship-To GSTIN field already existed on the EWB portal — what changes from 1st August 2026 is that this field becomes mandatory. It can no longer be left blank.
3. Change 1: Mandatory Ship-To GSTIN (Effective 1st August 2026)
WHAT CHANGES:
For any Bill-To/Ship-To e-Way Bill, the Ship-To GSTIN field will be mandatory. The EWB portal will reject generation if this field is left blank.
WHAT TO ENTER:
✔ Registered delivery location: Enter the GSTIN of the Ship-To location.
✔ Unregistered location / end consumer: Enter 'URP' (Unregistered Person). The portal accepts this.
Businesses Most Affected:
• Construction & Infrastructure — goods delivered to unregistered project sites
• Manufacturing & Wholesale — head office orders, but factory/warehouse receives goods
• E-Commerce & Logistics — drop-ship models, goods go to fulfilment centres or end consumers
Compliance Risk:
Once mandatory Ship-To GSTIN goes live, any mismatch between the Ship-To GSTIN on the e-Way Bill and the recipient GSTIN on the tax invoice will create a discrepancy. This can attract:
• Detention of goods under Section 129 of the CGST Act, 2017
• Confiscation proceedings under Section 130 of the CGST Act, 2017
• Failed EWB generation (API call rejected) for ERP/software users if field is left blank
4. Change 2: Voluntary EWB Closure Facility (New Feature)
GSTN has introduced a new EWB Closure Facility that allows an official 'delivery confirmed' status to be recorded against an e-Way Bill. This is currently voluntary — there is no penalty for not using it at this stage. However, it is expected to become mandatory in the future.
Who Can Close an E-Way Bill?
Party How to Close
Supplier / Recipient / Transporter Log in to the EWB portal → search EWB → close
Driver / Authorised Representative Mobile number + OTP (no login required). Mobile must be registered at EWB generation
High-Volume Businesses (API) Use NIC Sandbox API: inputs are EWB number, closure date, and remarks
How It Works — Two Options:
• By EWB Number: Search a specific e-Way Bill and close it individually.
• By Date: Close all e-Way Bills generated on a particular date — ideal for businesses processing many daily deliveries.
⏱ CLOSURE WINDOW (as per GSTN Advisory No. 661):
The e-Way Bill can be closed on the same day of delivery or the immediately following day.
Why act now even though it's voluntary? Businesses that start using this will have cleaner audit records. A closed EWB is a far stronger record of delivery than an expired one. The industry widely expects EWB closure to become mandatory in due course.
5. Action Plan — What You Must Do Before 1st August 2026
Who Action Required Deadline
ERP / Accounting Software Users Contact your software vendor. Confirm Ship-To GSTIN field is made mandatory in EWB generation flow. Deploy and test update. Before 1 Aug 2026
API / Direct Integration Users Access NIC Sandbox. Test updated API with mandatory Ship-To GSTIN field and new EWB Closure API. Complete before production go-live. Before 1 Aug 2026
Manual Portal Users
(Team Members) Train staff who generate EWBs. Identify Bill-To/Ship-To transactions. Enter GSTIN for registered locations, 'URP' for unregistered. Prepare a one-page internal SOP. Immediately
Logistics & Accounts Teams Audit Ship-To address master data. Verify GST registration status. Assign GSTIN or mark URP for each location. Register driver mobile numbers for EWB closure. Before 1 Aug 2026
Need Help? Contact Us
G S M K & Associates
Chartered Accountants
📞 +91 7411081519 | 📱 +91 8971936452 | ✉ [email protected] | ✉ [email protected]
1st Floor, MSR Square, No.890, 1st Main Rd, AECS Layout, B Block, Singasandra, Kudlu, Bengaluru - 560068
This document is prepared for informational purposes only. For specific advice, please consult our team.
