An e-way bill (EWB) is an electronic document generated on the government's e-way bill portal before goods are moved. It records what is being moved, between whom, and in which vehicle. If you sell, buy or transfer goods worth more than ₹50,000 in one consignment, you will deal with e-way bills regularly. Here are the rules that apply in 2026, including the changes from 2025.
When is an e-way bill required?
Under Rule 138 of the CGST Rules, an e-way bill is required when goods with a consignment value above ₹50,000 are moved:
- in relation to a supply (a sale),
- for reasons other than supply (for example a stock transfer, sending goods for job work or on approval), or
- because of an inward supply from an unregistered person.
Consignment value is the value on the invoice, bill of supply or delivery challan, including GST, but excluding the value of exempt goods supplied together. For some movements, such as goods sent by a principal to a job worker in another state, and handicraft goods sent by certain exempt dealers, an e-way bill is needed even below ₹50,000.
State limits: for movement within a state, some states have notified a higher limit than ₹50,000 or exempted certain movements. Check your state's rules on the e-way bill portal.
Common exemptions
- Goods carried by non-motorised conveyance (for example a hand cart).
- Goods listed in the Annexure to Rule 138, such as many unprocessed agricultural and fresh food items, and LPG for household use.
- Goods moved from a port, airport, air cargo complex or land customs station to an inland container depot or container freight station for customs clearance.
- Movement where the goods are not treated as a supply under Schedule III, and certain other notified cases.
Part B (vehicle details) is not required where goods move up to 50 km within the same state from the consignor's place of business to the transporter's place for onward transport, or from the transporter to the consignee.
Part A, Part B and who generates it
Part A holds invoice details: GSTINs of supplier and recipient, place of delivery, document number and date, value, HSN code and reason for transport. Part B holds the transport details: vehicle number or transport document number.
The registered supplier or recipient usually generates the e-way bill. If they don't, the transporter must. An unregistered supplier's buyer, if registered, is responsible. Businesses above the e-invoicing limit can generate an e-way bill using their e-invoice (IRN) details.
Validity, extension and cancellation
| Rule | What it says |
|---|---|
| Validity (normal cargo) | 1 day for up to 200 km, plus 1 day for every additional 200 km or part of it |
| Validity (over-dimensional cargo) | 1 day for up to 20 km, plus 1 day for every additional 20 km or part of it |
| How days are counted | A 'day' ends at midnight of the day following the date of generation |
| Extension | Can be extended within 8 hours before or after expiry, by the person who generated it or the transporter |
| Cancellation | Within 24 hours of generation, if it has not been verified in transit |
| Rejection by recipient | Within 72 hours of the details being made available, or before delivery, whichever is earlier |
2025 changes still catching businesses out
- 180-day limit on base documents (from 1 Jan 2025): an e-way bill can only be generated for an invoice, bill or challan dated within the last 180 days.
- 360-day cap on extensions (from 1 Jan 2025): an e-way bill can't be extended beyond 360 days from its original generation.
- Multi-factor authentication (from 1 Apr 2025): MFA is mandatory for all taxpayers logging in to the e-way bill and e-invoice portals, so keep the registered mobile number handy for whoever generates EWBs.
Penalties for moving goods without an e-way bill
Goods and the vehicle can be detained under Section 129 of the CGST Act. To release them, the owner who comes forward generally pays a penalty of 200% of the tax payable (with different amounts for exempt goods and other cases). A separate penalty of ₹10,000 or the tax evaded, whichever is higher, can apply under Section 122. Getting the e-way bill right is far cheaper.
A practical e-way bill checklist
- Check whether the consignment value (including tax) exceeds ₹50,000, or your state's intra-state limit.
- Confirm the invoice or challan is less than 180 days old.
- Enter the correct HSN, value, GSTINs and pin codes. Distance is calculated from pin codes.
- Add the vehicle number (Part B) before the goods move, unless the 50 km exemption applies.
- Give the driver the EWB number or a printout.
- If the vehicle breaks down, update Part B with the new vehicle.
- Extend within 8 hours of expiry if delivery is delayed, and cancel within 24 hours if the movement is called off.
57th GST Council: proposed limits on interceptions
On 8 October 2026 the 57th GST Council recommended amending Sections 68, 129 and 130 of the CGST Act so that:
- a vehicle carrying goods can be intercepted only on specific intelligence, with authorisation from an officer not below Joint Commissioner rank;
- inspection, detention or seizure can happen only in the State where the supplier or the recipient is located or registered, not in transit States;
- where no e-way bill has been generated, or the vehicle carries no document showing where the goods come from or go to, goods can still be inspected, detained or seized anywhere; and
- confiscation under Section 130 will not apply to goods or vehicles in transit.
These changes need amendments to the CGST Act, so they are not in force yet (no notification as of 11 October 2026). Until then, the current rules above apply, and a missing e-way bill remains a risk under every version.
Where VelBooks fits
Every e-way bill starts with an accurate invoice or challan. VelBooks GST billing keeps invoice values, HSN codes and party GSTINs correct, which is the data you need for your EWB.
Want to generate e-way bills from your invoices? Talk to us about your requirements.
Sources
- CGST Rule 138 (CBIC)
- E-way bill portal
- E-way bill advisory on 2025 updates
- CBIC
- PIB: Recommendations of the 57th GST Council meeting (8 Oct 2026)
This article is general information, not legal or tax advice. Rules change; check the official sources above or consult your tax adviser.