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

Goods moving between two locations in India generally need an e-way bill, the electronic permit generated on the GST portal’s e-way bill system. This master guide explains when the ₹50,000 threshold applies, how validity is calculated per kilometre, which movements are exempt, what documents must travel with the goods, and the penalties for non-compliance — the evergreen rules in force in 2026.

What Is an E-Way Bill and When Is It Required?

An e-way bill is generated electronically on ewaybillgst.gov.in and must accompany any consignment of goods valued above ₹50,000 (invoice value plus GST). It can be raised by the registered person causing the movement, by the transporter, or by an unregistered person who enrols on the portal. Enforcement teams can intercept vehicles anywhere on the route.

Consignments below ₹50,000 are free from the national requirement, but intra-state limits differ by state — several states apply lower or higher thresholds for movement within their own territory. Always check your state’s notification before dispatching locally, because the rule that applies depends on where the goods move, not just on the invoice value.

Part A and Part B: The Two Building Blocks

Every e-way bill has two parts. Part A captures the consignment details: GSTINs of supplier and recipient, place of dispatch and delivery, document number and date, value, HSN code and the reason for transportation. Part B records the transport information — the vehicle number for road movement or the transport document number for rail, air and vessel consignments.

Generation is flexible. Large businesses push data through the API route, transporters use the SMS facility from a registered mobile number, and everyone else can log in directly, use bulk-generation tools or route through GSP platforms. Part A can be prepared before dispatch, while Part B is normally entered when the goods actually leave the premises; a consignment is valid to move only once Part B carries the vehicle details.

How E-Way Bill Validity Is Calculated

Validity is distance-based. For normal goods, an e-way bill is valid for one day for every 200 km; where the distance exceeds 200 km, each additional 200 km or part thereof adds one more day, because part distances are rounded up. A 550 km journey therefore gets three full days, and one day means 24 hours counted from generation (or from the moment Part B is entered where the vehicle was attached later).

Over-dimensional cargo, such as machinery whose size exceeds prescribed road limits, moves far more slowly, so the rule allows just one day for every 20 km. Where a delay looks likely, the generator can extend validity before the bill lapses by entering the reasons and fresh vehicle details within the prescribed window on the portal.

Goods and Movements Exempt From E-Way Bill

The rules carve out several categories where no e-way bill is needed even though goods move:

• Consignments valued at ₹50,000 or less, subject to any lower state-specific intra-state limits.
• Short-distance transport within 50 km inside the same state, from the consignor’s premises to the transporter’s hub or from the transporter’s hub to the recipient, where the trip is only a leg of further transportation.
• Specified goods such as household LPG cylinders, gold in some cases (many states still demand an e-way bill for intra-state gold movement), and perishables, where state rules vary.
• Movement under customs supervision, transit cargo to Nepal and Bhutan, empty cargo containers, and defence or military equipment.

Exemption lists are amended frequently and depend heavily on the state. Confirm the position for your product and route before assuming an exemption applies.

Documents to Carry During Transit

The person in charge of the vehicle must carry the tax invoice or bill of supply, a copy of the e-way bill in physical or electronic form, and the consignment note or lorry receipt where goods move through a transporter. The vehicle number inside the e-way bill must match the vehicle actually used, so any change of vehicle mid-journey requires an immediate Part B update. Businesses above the e-invoicing threshold should also make sure the invoice carries the IRN, since enforcement teams increasingly cross-check e-invoice data against the e-way bill during interception.

Missing paperwork is the most common trigger for detention even when the tax position is clean. Businesses that move goods across several states routinely map routes, distances and document sets with help from a GST consultant before the first dispatch.

January 2025 Changes: Ship-To GSTIN and Voluntary Closure

Two procedural upgrades effective 16 January 2025 matter for every dispatch desk. First, where a single invoice supplies goods to multiple ship-to locations, the system now requires a consolidated e-way bill plus an individual e-way bill for each destination, each quoting the correct ship-to GSTIN. Second, the portal added a closure facility: the generator can close an e-way bill voluntarily within 360 days, the recipient can communicate acceptance or rejection of the consignment, and where the recipient stays silent the system closes the e-way bill automatically. Our detailed post on mandatory ship-to GSTIN reporting and voluntary closure of e-way bills walks through both changes.

Penalties for E-Way Bill Violations

Moving goods without a valid e-way bill attracts a penalty of ₹10,000 or the amount of tax sought to be evaded, whichever is higher, under section 122 of the CGST Act. Separately, goods and the vehicle can be detained or seized under section 129 and released only after tax and penalty are paid, with the penalty going up to twice the tax payable where the owner comes forward. Before long hauls, verify distances and validity using our e-way bill validity calculator so that rounding errors do not leave your cargo exposed.

Key Takeaways

• An e-way bill is mandatory for consignments above ₹50,000, with state-specific intra-state limits.
• Validity is 1 day per 200 km for normal cargo and 1 day per 20 km for over-dimensional cargo.
• Multiple ship-to addresses need consolidated plus individual e-way bills with the correct ship-to GSTIN since 16 January 2025.
• The penalty is ₹10,000 or tax sought to be evaded, whichever is higher, and goods can also be detained.

Frequently Asked Questions

Is an e-way bill required for goods below ₹50,000?

Not under the central rule, but several states require an e-way bill for intra-state movement at lower values. Check your state’s notification before dispatching small consignments locally.

What happens if the e-way bill expires before delivery?

The generator should apply for an extension before expiry, giving reasons and fresh vehicle details. Once a bill has expired without extension, further movement invites interception and penalty.

Who can generate an e-way bill?

The registered supplier or recipient causing the movement, the enrolled transporter, or an unregistered person who enrols on the portal. Generation modes include the web portal, API, SMS and bulk upload.

Can an e-way bill be cancelled after generation?

Yes. The generator can cancel it within 24 hours of generation, provided no enforcement verification has commenced and the reason is recorded on the portal.

Does gold require an e-way bill?

It depends. Gold is outside the central e-way bill requirement in some contexts, yet many states mandate it for intra-state movement, so jewellers must track state rules separately.

Disclaimer: Tax laws change frequently. Verify current rates and deadlines on the official portals (incometax.gov.in, gst.gov.in) or consult a qualified professional before acting.