E-Way Bill Rules in India (Rule 138 Explained)

Quick answer: Rule 138 of the CGST Rules, 2017, read with Section 68 of the CGST Act, generally requires an e-way bill before goods with a consignment value above ₹50,000 are moved. It sets who generates it, Part A and Part B, validity, exemptions and cancellation; Sections 129 and 122 cover penalties.

Rule 138 of the CGST Rules, 2017 is the core rule behind the e-way bill. It is long and full of cross-references, so this guide breaks it into the questions businesses actually ask. Rule numbers are given so you can read the original text on CBIC GST, but the wording here is a plain-language summary, not the legal text. States have parallel provisions under their SGST Acts, and the rules are amended by notification, so verify the current text before relying on any point.

Legal basis

When an e-way bill is required (Rule 138(1))

Information in Part A of Form GST EWB-01 must be furnished before goods start moving, where the consignment value exceeds ₹50,000, and the movement is:

1. In relation to a supply — a normal sale or other supply.
2. For reasons other than supply — for example, stock transfer, job work, sending goods for approval or exhibition, sales return.
3. Due to inward supply from an unregistered person — the registered recipient generates it.

Consignment value

Consignment value is the value declared in the invoice, bill of supply or delivery challan, including CGST, SGST/UTGST, IGST and cess, but excluding the value of exempt supplies billed on the same document. In practice, test the threshold on the invoice total with tax, not on the taxable value.

State thresholds

Some states have notified a different (higher) limit for intra-state movement or for specified goods. Inter-state movement follows the general limit. Do not assume your state's limit — check the latest state notification on the official portal.

Required irrespective of value

• Inter-state movement of goods by a principal to a job worker.
• Inter-state transport of specified handicraft goods by a person exempt from registration.

For these movements, do not run the ₹50,000 test at all — generate the e-way bill anyway. A registered person may also generate an e-way bill voluntarily even when the value is below the threshold.

Who generates it

Where goods are handed to a transporter, the consignor or recipient can fill Part A and assign the Transporter ID so that the transporter fills Part B.

In practice, agree in writing — in the purchase order or transport contract — who will generate the e-way bill. Confusion over responsibility is a common reason goods leave without one.

Form GST EWB-01: Part A and Part B

• Part A: GSTIN of supplier and recipient, place of delivery (PIN), document number and date, value of goods, HSN code, reason for transportation, transport document number.
• Part B: vehicle number for road, or transport document details for rail, air and ship.

The e-way bill is valid for movement only after Part B is filled. For movement by rail, air or ship, the supplier or recipient generates the e-way bill and the transport document number is furnished in Part B.

Part B exemption for short distances

Part B is not required where goods move within the same state or union territory up to 50 km from the consignor's place of business to the transporter's place for further transport, or from the transporter's place to the consignee's place. Part A is still needed. See Distance Rules.

Part B can be updated, Part A cannot

Part A details cannot be edited once the e-way bill is generated; if they are wrong, cancel within 24 hours and generate a new one. Part B can be updated any number of times within validity — for a breakdown, trans-shipment or change of transporter.

Transfer to another vehicle

When goods move from one conveyance to another, Part B must be updated with the new vehicle before the move continues — brief your transporters that the portal update comes before goods move in the new vehicle. See How to Update Vehicle Details. Multiple consignments in one vehicle can be covered by a consolidated e-way bill (Form GST EWB-02) generated by the transporter.

Validity (Rule 138(10))

The first day ends at midnight of the day following generation.

Example (illustrative): a Coimbatore pump manufacturer generates an e-way bill at 11:00 am on 3 August for a 520 km trip. 520 ÷ 200 = 2.6, rounded up ("or part thereof") = 3 days. Day 1 ends at midnight of 4 August, day 2 at midnight of 5 August and day 3 at midnight of 6 August, so the bill is valid until 11:59 pm on 6 August.

Validity can be extended by the generator or the transporter in charge within 8 hours before or after expiry, when goods cannot reach in time due to exceptional circumstances such as an accident, natural calamity, law and order problem or trans-shipment delay. The window is strict. As reported by GSTN, from 1 January 2025, total extension is capped at 360 days from the original generation date. Details in E-Way Bill Validity.

Cancellation and acceptance

• Cancellation (Rule 138(9)): within 24 hours of generation, if goods are not transported or not transported as per the details. Not allowed if the bill has been verified in transit. See Cancellation.
• Acceptance (Rule 138(12)): the recipient can accept or reject within 72 hours of the details being made available, or before delivery if earlier. No action means it is deemed accepted. Recipients should therefore check e-way bills generated against their GSTIN and promptly reject any raised by mistake or misuse.

Documents to carry (Rule 138A)

The person in charge of the conveyance must carry:

• The invoice, bill of supply or delivery challan, and
• A copy of the e-way bill (physical or electronic), or the e-way bill number, or the e-way bill mapped to an RFID device fixed on the vehicle.

Where an e-invoice is issued, the IRN can be produced in place of the physical invoice, subject to current rules.

Verification in transit (Rules 138B to 138D)

Officers can intercept a vehicle and verify documents and goods. Physical verification is recorded in prescribed forms. If a vehicle is detained for more than 30 minutes, the transporter can report it on the portal in the prescribed form.

Exemptions (Rule 138(14) and its Annexure)

An e-way bill is not required in several situations, including:

• Goods listed in the Annexure to Rule 138(14), and goods specified as exempt or nil-rated in certain notifications.
• Goods transported by non-motorised conveyance.
• Goods moving from a port, airport, air cargo complex or land customs station to an ICD or CFS for customs clearance.
• Goods under customs bond or customs supervision in specified movements.
• Specified movements by defence formations, and empty cargo containers.

The list has many conditions. Read the current text for your specific goods before relying on an exemption — "exempt from GST" is not the same as "exempt from e-way bill" for every item.

Blocking of generation (Rule 138E)

A taxpayer who has not filed returns for the prescribed period can be blocked from generating e-way bills as consignor or consignee. Keep returns filed on time.

Recent changes to note

As reported by GSTN advisories (verify on the portal):

• From 1 January 2025, e-way bills cannot be generated for base documents older than 180 days.
• From 1 January 2025, extension is limited to 360 days from original generation.
• Multi-factor authentication on the e-way bill portal now applies to all taxpayers.
• The E-Way Bill 2.0 portal runs alongside the main portal with synchronised data.

Penalties

Moving goods without a valid e-way bill, or with mismatched details, can lead to detention and seizure of goods and the vehicle and a penalty under Section 129. The penalty can be substantial; read Section 129 for the exact computation. Section 122 also contains general penalties.

Example (illustrative)

A Surat textile unit sends grey fabric worth ₹38,000 plus GST to a job worker in Maharashtra. The value is below ₹50,000, but because it is inter-state movement from a principal to a job worker, an e-way bill is required irrespective of value. The unit uses a delivery challan with sub-type "Job Work".

Quick reference

Common mistakes

• Treating the threshold as invoice taxable value only.
• Splitting an invoice to stay under ₹50,000. The rules look at the movement and the documents; artificial splitting invites scrutiny and penalty.
• Assuming non-sale movements are outside the rules.
• Assuming intra-state means no e-way bill — only true if your state's notified threshold or an exemption applies.
• Relying on a state's intra-state threshold for an inter-state movement.
• Not updating Part B on change of vehicle.
• Missing the 8-hour extension window.
• Not rejecting wrong bills — silence counts as acceptance after 72 hours.

Limitations

This guide summarises the general rules. Imports, exports, exhibitions, SKD/CKD supplies and e-commerce have their own nuances; see E-Way Bill Returns and Special Transactions and Interstate Movement Requirements. For routine sales, the E-Way Easy app keeps invoice and e-way bill details in one flow, which helps with the before-dispatch part; the compliance decisions remain yours.

Official sources

Read the CGST Act and Rules on CBIC GST and CBIC, and follow advisories on the e-way bill portal and its user documentation. For tricky cases, take advice from a qualified tax professional. The free eligibility checker gives a quick first answer.