Selling guides
How to Price a Surplus Stock Lot So It Actually Sells
A working method for pricing dead stock, overstock and export surplus: start from what the buyer can resell it for, not from what...
Transport and logistics
E-way Bill for Stock Lots: When You Need One and How It Works
You have agreed a deal on a stock lot and the truck is booked. The one document that most often holds goods up on the highway is the e-way bill. Here is how it works for a typical surplus-stock deal, in plain terms.
When an e-way bill is needed
Under GST, an e-way bill is needed when goods worth more than ₹50,000 move by road, rail, air or ship. The value is the consignment value on the invoice or delivery challan, including GST.
For movement inside one state, some states set a higher limit for intra-state movement or exempt movement within a city. The rule differs by state, so check the current notification for your state on the e-way bill portal if your deal is local.
A few points that catch people out with stock lots:
- It applies to the consignment, not the deal. If you split one large deal into several trucks, each truck carries its own invoice and, if over the limit, its own e-way bill.
- It applies even when there is no sale. Sending goods to a job worker, to your own branch in another state, or back to the supplier also needs one above the limit.
- Old or damaged stock is still goods. A low value per piece does not matter; the total consignment value does.
Who generates it
Any registered person involved can generate it: the supplier, the buyer or the transporter. In practice, for a stock-lot sale the seller usually generates it because they issue the invoice. If the buyer collects the goods with their own vehicle, agree in advance who will do it so nobody turns up without one.
An unregistered seller selling to a registered buyer: the buyer can generate it.
Part A and Part B
The e-way bill has two parts:
Part A holds the invoice details: GSTINs of supplier and recipient, place of delivery, invoice number and date, value, HSN code and reason for movement.
Part B holds the transport details: vehicle number for road transport, or the transport document number for rail, air or ship.
The bill is only valid for movement once Part B is filled. If the vehicle changes on the way, for example when goods are shifted from a small vehicle to a truck at a transport hub, Part B must be updated with the new vehicle number.
How long it is valid
For ordinary cargo, validity is one day for every 200 km or part of it. A 450 km trip gets three days. A "day" ends at midnight of the following date, so the clock does not start fresh each morning. Over-dimensional cargo has a shorter distance per day.
If the goods cannot reach in time because of a breakdown or another genuine reason, the validity can be extended within the window allowed on the portal. Do not let it lapse first.
What the driver must carry
The driver needs the invoice (or bill of supply or delivery challan) and the e-way bill number, either printed or on the phone. Officers check the vehicle number against Part B and the goods against the invoice.
That last part matters for stock lots. If the invoice says "200 cartons of steel kitchenware" and the truck also has 30 cartons of plastic items that are not on any document, the whole consignment can be held. Put every item on the invoice, or send the rest separately.
Common mistakes with surplus stock
- Vague descriptions. "Mixed goods" or "stock lot" is not enough. Write what the goods are and use the right HSN code.
- Wrong value. Declaring a token value on the invoice to stay below the limit is the fastest way to get stopped and penalised.
- Pin code and distance errors. The portal calculates distance from pin codes. A wrong pin code gives the wrong validity.
- Not cancelling unused bills. If the deal falls through, cancel the e-way bill within 24 hours of generating it.
Questions
Is an e-way bill needed if the buyer picks up the goods?
Yes, if the consignment value is above the limit. The buyer's own vehicle still needs a valid e-way bill with its number in Part B. Agree beforehand who generates it.
Can a buyer generate the e-way bill?
Yes. The supplier, the recipient or the transporter can generate it. Many stock-lot buyers prefer to do it themselves when they arrange the transport.
What if the vehicle breaks down on the way?
Update Part B with the new vehicle number if the goods are moved to another vehicle, and extend the validity on the portal if the trip will take longer than allowed.
Planning transport for a lot? See more guides on the Bikwao blog and browse Material Handling, Warehousing Equipment & Cranes if you need loading equipment.
