India - Changes to the E-invoice and E-way Bill (EWB) Systems

The Goods and Services Tax Network (GSTN), a government-owned company responsible for GST, the e-way bill (EWB) system, e-invoicing, and TINXSYS projects in India, introduced important updates to the EWB system through the GST portal. To help taxable persons understand these changes, GSTN published two FAQs, one covering Bill-to/Ship-to transactions and the other on closure of EWB, in July 2026, explaining the new requirements.

Key Changes and FAQs Scope

GSTN introduced three key changes to e-invoicing and EWB systems. The first change is that the "Ship-to GSTIN" field is now mandatory when generating an e-way bill for Bill-to/Ship-to and Combination transactions. Without this information, the GST portal will not allow the EWB to be generated 

Additionally, when goods are delivered to an unregistered recipient, such as an end customer or an unregistered warehouse, users may enter "URP", an abbreviation for unregistered person, in the Ship-to GSTIN field instead. Lastly, GSTN introduced an optional EWB closure facility that allows suppliers, recipients, transporters, and other authorized users to voluntarily mark an EWB as closed after the goods have been successfully delivered.

The published FAQs provide detailed rules on how the mandatory Ship-to GSTIN requirement applies across different EWB generation scenarios. Notably, these rules vary depending on whether the EWB is generated together with an Invoice Reference Number (IRN), through the IRN-based API, or for specific transaction types such as exports, B2B, or Special Economic Zone (SEZ) supplies.

GSTN noted that all updates to the e-invoice API, EWB by IRN API, and EWB Closure API are available in the Sandbox environment. Importantly, all taxable persons must adjust their systems accordingly by August 1, 2026.

Conclusion

Businesses subject to e-invoicing and EWB rules and requirements should review the provided FAQs and understand how the new rules apply in different scenarios and workflows. Given the short period until the effective date, businesses should act promptly to align their systems with new requirements and ensure compliance.