E-Way Bill Rules 2026: Limit, Validity, Exemptions and Penalties

If you send goods out of your shop or godown in a vehicle, sooner or later someone will ask whether the delivery needs an e-way bill. The question usually comes up at the worst moment: the tempo is loaded, the driver is waiting, and nobody is sure whether ₹55,000 of goods going to the next town counts.

This guide is written for that moment. It explains the e-way bill limit and how the value is counted, how state limits differ for deliveries inside a state, who has to generate the bill, what goes into Part A and Part B, how long a bill stays valid, which goods and movements are exempt, what changed from January 2025, and what happens if goods are stopped without one. It ends with a checklist you can use before every dispatch.

What is an e-way bill?

The e-way bill comes from Section 68 of the CGST Act and Rule 138 of the CGST Rules. It replaced the paper waybills and check-post forms that states used before GST. Instead of stamping papers at state borders, goods now move with an electronic bill that tax officers can verify on the road using its number or QR code.

You generate it on the official portal, ewaybillgst.gov.in, using your GST login. It can also be generated by SMS, through the mobile app, or through an API if your software supports it. Each bill gets a unique 12-digit e-way bill number (EBN), which is shared with the supplier, the recipient and the transporter.

The e-way bill does not replace your tax invoice. The goods still travel with the invoice, bill of supply or delivery challan. The e-way bill is an extra layer that tells the tax system the goods are on the move, where they are going and in which vehicle.

The e way bill limit: how ₹50,000 is counted

The trigger is the value of the consignment, and the way it is counted matters:

• It is the value on the invoice, bill of supply or delivery challan for the goods being moved.
• It includes GST (CGST, SGST or IGST) and any cess charged on those goods.
• It excludes the value of exempt goods billed on the same invoice.
• It is counted per consignment, not per day or per customer.

So an invoice of ₹45,000 plus 18% GST (₹8,100) has a consignment value of ₹53,100, which is above ₹50,000. The same goods at ₹42,000 plus 18% GST come to ₹49,560, which is below the limit. If you are close to the line, always check the figure with tax, not the taxable value alone.

A few movements need an e-way bill even below ₹50,000. The most common are inter-state movement of goods sent for job work by the principal or a registered job worker, and inter-state movement of handicraft goods by a casual dealer who is exempt from registration. If either applies to you, check the current rule with your CA rather than relying on the value test.

State-wise limits for deliveries within a state

The ₹50,000 limit is fixed for inter-state movement. For intra-state movement, the law lets each state notify its own limit, and many have chosen a higher one. Commonly reported examples:

Two cautions. First, states revise these limits by notification, and some apply special rules to particular goods, so treat this table as a starting point and confirm the current figure on your state's commercial tax website or with your CA. Second, a state limit applies only when the goods start and end within that state. The moment goods cross a state border, the ₹50,000 rule applies, whatever your home state allows.

Who has to generate the e-way bill?

Responsibility follows the movement of the goods:

• The registered supplier generates it when they send the goods, which is the usual case for a shop or wholesaler delivering to a customer.
• The registered recipient generates it when they arrange the transport, for example when a retailer sends their own vehicle to collect stock.
• The transporter generates it if neither the supplier nor the recipient has, but only after the supplier or recipient hands over the invoice details.
• An unregistered supplier selling to a registered recipient: the recipient is responsible, because the unregistered seller cannot use the portal for a taxable supply.

In practice, the person who sends the goods should generate the bill before the vehicle leaves. Waiting for the transporter to "handle it" is how consignments end up stopped on the highway.

Part A and Part B

Every e-way bill has two parts.

Part A describes the goods and the transaction:

• GSTIN of the recipient (or "URP" for an unregistered person)
• Place of delivery, with the PIN code
• Invoice or challan number and date
• Value of the goods
• HSN code of the goods
• Reason for transport, such as supply, job work, sales return or own use

Part B describes the transport:

• Vehicle number for road transport, or
• Transport document number (railway receipt, airway bill or bill of lading) for other modes

Part A is filled from your invoice, which is why a correct invoice saves time. The HSN code, place of supply and value should match what you billed. Our guide to the GST invoice format lists every field a tax invoice must carry, and what is an HSN code explains how many digits you need.

When Part B can wait. If goods move up to 50 km within the same state, from your place of business to a transporter's place (or from the transporter to the customer), Part B is not required. You still fill Part A. This helps when you hand goods to a local transporter who loads them onto a longer-distance vehicle later; the transporter then updates Part B for that vehicle.

Changing vehicles. If the goods are shifted to another vehicle mid-journey, Part B must be updated with the new vehicle number before the goods move on. A breakdown is not a reason to drive on with a bill that names the wrong vehicle.

How long is an e-way bill valid?

Validity depends on the distance, and starts from the time Part B is first filled in.

Two details people miss:

• A "day" ends at midnight of the following day. A bill generated at 4 pm on Monday for a 150 km trip is valid until midnight between Tuesday and Wednesday, not just 24 hours.
• "Or part of it" counts. A 430 km trip is not 2.15 days rounded down. The first 200 km is day 1, the next 200 km is day 2, and the remaining 30 km starts day 3. So a 430 km trip gets 3 days.

Extending validity. If the goods cannot reach in time because of a breakdown, an accident, a strike or something similar, the bill can be extended. The extension can be requested in a window starting 8 hours before the bill expires and ending 8 hours after it expires. You give the reason, the current location and the remaining distance.

What changed in 2025

Two limits came into force from 1 January 2025:

1. 180-day limit on documents. An e-way bill can be generated only if the invoice or challan date is within the last 180 days. Old invoices cannot be used to cover a fresh movement.
2. 360-day limit on extensions. An e-way bill can be extended only up to 360 days from the date it was first generated. A bill cannot be extended indefinitely.

Neither affects a normal shop delivery, which is generated and used within a day or two. They matter if you move goods months after billing them, or if a consignment is stuck for a long time.

Cancelling and rejecting e-way bills

Cancelling. If the goods do not move, or the bill was generated with wrong details, it can be cancelled within 24 hours of generation, provided it has not already been verified by an officer on the road. After 24 hours, it cannot be cancelled on the portal. You cannot edit Part A once generated; the fix for a mistake is to cancel and generate a fresh bill within that window.

Rejecting. The recipient can reject an e-way bill generated in their name within 72 hours, or before delivery, whichever is earlier. If they do nothing, it is treated as accepted.

Exemptions: when no e-way bill is needed

Rule 138(14) lists movements that do not need an e-way bill, whatever the value. The ones most relevant to traders:

• Non-motorised conveyance, such as a handcart, cycle rickshaw or bullock cart
• Exempt goods listed in the annexure to the rule, including fresh vegetables and fruit, fresh milk, LPG supplied for household use, and jewellery, precious stones and similar goods
• Goods moving from a port, airport, air cargo complex or land customs station to an inland container depot or container freight station for customs clearance
• Goods moving under customs supervision or customs seal
• Empty cargo containers
• Certain movements by rail where the consignor is the government

The exempt-goods list is specific, so check it rather than assuming. "Agricultural produce" in general is not exempt from the e-way bill just because it is cheap; the item has to be on the list or otherwise outside GST.

What happens if goods move without an e-way bill?

If an officer stops a vehicle and the required e-way bill is missing, or the details do not match the goods, the consequences under Section 129 of the CGST Act are serious:

• The goods and the vehicle can be detained.
• They are released when the owner comes forward and pays a penalty of 200% of the tax payable on the goods. For exempt goods, the penalty is 2% of the value of the goods or ₹25,000, whichever is less.
• If the owner does not come forward, the penalty is the higher of 50% of the value of the goods or 200% of the tax.

Separately, Section 122 carries a general penalty for transporting taxable goods without the required documents: ₹10,000 or the tax evaded, whichever is higher.

To put that in rupees: a consignment of ₹1,00,000 at 18% GST carries ₹18,000 of tax. If it is detained and the owner comes forward, the penalty is 200% of the tax, or ₹36,000, before anything else. Generating the e-way bill takes a few minutes.

E-way bills and e-invoicing

Businesses that must issue e-invoices (based on their turnover) report each invoice to the Invoice Registration Portal and get an IRN. For them, the e-way bill can be generated from the IRN, with Part A filled from the e-invoice data and only the transport details left to add. If you are not required to issue e-invoices, you generate the e-way bill directly on the portal as described above.

Worked examples

1. ₹65,000 of goods, 120 km within Maharashtra. A wholesaler in Pune sends ₹65,000 of goods (including GST) to a shop in Satara. The movement is intra-state. Maharashtra's reported intra-state limit is ₹1,00,000, so an e-way bill is not required for this consignment under the state limit. Confirm the current Maharashtra notification, because the limit can change and some goods have special rules.

2. The same goods to Gujarat. The same ₹65,000 consignment goes from Pune to Surat. It crosses a state border, so the ₹50,000 limit applies. An e-way bill is required. The invoice will also carry IGST rather than CGST and SGST; our guide to the difference between CGST, SGST and IGST explains why.

3. A ₹45,000 delivery to another state. The consignment value including GST is ₹45,000, below ₹50,000. No e-way bill is required for a normal supply, though you should still carry the invoice. If this were goods sent for job work, check the job-work rule, which can apply below the limit.

4. Validity for a 430 km trip. As worked out above, 200 km + 200 km + 30 km = 3 days, ending at midnight at the end of the third day.

Checklist before every dispatch

1. Is it moving by a motorised vehicle? If not, no e-way bill.
2. Are the goods on the exempt list? If yes, no e-way bill.
3. Is it inter-state? Use the ₹50,000 limit.
4. Is it intra-state? Use your state's limit, confirmed for the current year.
5. What is the consignment value including GST? Compare it with the limit.
6. Is it job work or handicraft goods inter-state? These can need a bill below the limit.
7. Who is arranging transport? That person generates it, before the vehicle leaves.
8. Is Part B filled with the right vehicle number? Unless the 50 km exception applies.
9. Is the validity enough for the distance? Plan for delays on long routes.
10. Does the driver have the invoice and the e-way bill number? Both travel with the goods.

How BillZap fits in

BillZap, our free GST billing app for Android, does not generate e-way bills. You generate those on the government portal. What BillZap does is make the tax invoice that Part A is filled from:

• Each bill carries the HSN code, place of supply, taxable value and CGST, SGST or IGST, worked out for you.
• The total including GST is printed clearly, so you can see at a glance whether a consignment crosses the ₹50,000 line.
• Bills can be shared as a PDF or on WhatsApp, so the driver and the customer both have a copy.

It works fully offline, needs no sign-up and has no paid tier. At the end of the month, our guide on how to file GSTR-1 explains where those same invoices go in your return.

FAQ: e-way bills

The bottom line

The e-way bill is simple once the questions are in the right order: is the vehicle motorised, are the goods exempt, is it inter-state or intra-state, and what is the value with tax. Most shop deliveries fall clearly on one side of the line. For the ones that do not, a few minutes on the portal before the vehicle leaves costs far less than a detained consignment and a 200% penalty.

Getting the invoice right makes the e-way bill easy, because Part A comes straight from it. If you want a free app that puts the HSN code, place of supply and tax on every bill, BillZap is on Google Play. It works offline with no sign-up.

This guide explains e-way bill rules in plain language and is not tax advice. State limits and exemptions change by notification; confirm the current rules for your goods and state with your chartered accountant before relying on them.