E-Way Bill Rules 2026: Mandatory Thresholds, 50 km Exemption & Generation Guide
Rahul Verma
· Direct & Indirect Tax Specialist· 7 min read
Under Indian GST law, moving physical consignments without a valid electronic Way Bill (E-Way Bill) is the fastest way to get trucks detained, goods confiscated, and steep penalties slapped on both consignors and transporters. Rule 138 of the Central Goods and Services Tax (CGST) Rules governs e-way bill generation, but jurisdictional threshold variations and distance exemptions frequently confuse logistics and accounts teams.
- ✓Inter-state movement of goods exceeding ₹50,000 consignment value mandatorily requires an electronic Way Bill (Form GST EWB-01).
- ✓Intra-state thresholds vary significantly: Maharashtra, Delhi, West Bengal, and Bihar set the limit at ₹1,00,000 for intra-state cargo movement.
- ✓Under Rule 138(3) and (5), vehicle details (Part-B) are exempt if goods are moved within 50 km in the same state between consignor and transporter premises.
- ✓Moving goods without an e-way bill attracts severe seizure and penalties under Section 129 of the CGST Act equal to 200% of the tax payable.
What is an E-Way Bill and when is it legally mandatory?
An E-Way Bill is an electronically generated compliance document verifying that the movement of goods has been pre-declared to tax authorities. It consists of two parts: Part-A (containing supplier and recipient GSTINs, dispatch/delivery pincodes, invoice number, date, HSN code, and consignment value) and Part-B (vehicle registration number or transporter assignment ID).
Under Rule 138 of the CGST Rules, an e-way bill must be generated before the commencement of movement of goods whenever the consignment value exceeds ₹50,000. This applies to sales supplies, branch transfers, returns, or job-work dispatches.
Statutory Consignment Value Definition
Consignment value includes the invoice value plus all applicable CGST, SGST, IGST, and cess, but explicitly excludes the value of exempt supplies included in the invoice (Rule 138 Explanation 2).
State-by-state intra-state threshold limits in 2026
While inter-state movement is uniformly capped at ₹50,000 across India, individual State Governments have utilized powers under Rule 138(14) to raise intra-state thresholds to ease local commerce.
| State / Territory | Intra-State Threshold | Inter-State Threshold | Specific State Rules |
|---|---|---|---|
| Pan-India Baseline | ₹50,000 | ₹50,000 | Default limit under Rule 138 CGST Rules |
| Maharashtra | ₹1,00,000 | ₹50,000 | Exempts intra-city movement within municipal areas |
| Delhi (NCT) | ₹1,00,000 | ₹50,000 | Excludes tobacco, gutkha, and iron/steel scrap (₹50k applies) |
| West Bengal | ₹1,00,000 | ₹50,000 | Applies across all intra-state districts |
| Tamil Nadu | ₹1,00,000 | ₹50,000 | Excludes specified goods list |
| Karnataka | ₹50,000 | ₹50,000 | Strict ₹50,000 limit across all intra-state movements |
The 50 km distance exemption: Part-A vs Part-B breakdown
A frequent source of transporter panic is the 50 km exemption. Under the third proviso to Rule 138(3) and second proviso to Rule 138(5), when goods are transferred between the consignor's place of business and the transporter's godown (or from transporter to consignee) over a distance of up to 50 km within the same State or Union Territory, vehicle details in Part-B are NOT mandatory.
However, Part-A MUST still be generated prior to movement. The transporter updates Part-B before embarking on the long-haul transit.
- Movement must occur strictly within the same State or Union Territory.
- Maximum distance between consignor premises and transporter terminal is 50 kilometers.
- Part-A must always be pre-generated; only Part-B (vehicle number) is deferred.
- Once loaded on the inter-state vehicle, Part-B must be updated before crossing state lines.
Penalties for transit without E-Way Bill: Section 129 & 130
If an interception officer discovers goods in transit without an E-Way Bill or with an expired/mismatched document, statutory action is initiated under Section 129 of the CGST Act:
1. For owner of goods who comes forward: Penalty equal to 200% of the tax payable on such goods (or 2% of the value of exempt goods, minimum ₹25,000).
2. Where owner does not come forward: Penalty equal to 50% of the value of goods or 200% of tax payable, whichever is higher.
Persistent transit fraud or failure to clear penalties within 14 days escalates to confiscation proceedings under Section 130 with additional commercial fines.
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Frequently Asked Questions
Is an e-way bill required for transport under 50 km?
Yes, Part-A of the e-way bill is always required if the consignment value exceeds the statutory threshold (₹50,000 or state limit). However, entering vehicle details in Part-B is exempt if the movement is within 50 km within the same State between the consignor and the transporter's hub.
Can an e-way bill be generated without an e-invoice?
For businesses with an aggregate annual turnover exceeding ₹5 Crores who are mandated to generate E-Invoices under Rule 48(4), E-Way Bills must be generated directly using the Invoice Registration Portal (IRP) with an active IRN. Generating standalone e-way bills without e-invoicing creates non-compliance.
What is the validity period of an E-Way Bill?
For regular cargo, validity is 1 day for every 200 km (or part thereof). For Over Dimensional Cargo (ODC) or multimodal transport where at least one leg involves a vessel, validity is 1 day for every 20 km.
Can an expired E-Way Bill be extended?
Yes, the transporter or generator can extend the e-way bill validity on the official portal within 8 hours before or 8 hours after the time of expiry by updating the vehicle location and reason for transit delay.
Rahul Verma
Direct & Indirect Tax SpecialistOver a decade advising Indian businesses on GST Rule 46 invoicing, E-Way Bill transit compliance, and corporate tax structuring.