Taxation · E-Way Bill

E-Way Bill Basics and Legal Provisions (Rule 138) for CA Intermediate

Updated 5 October 2026 · Fact-checked

An e-way bill is an electronic document that must accompany goods when the consignment value exceeds ₹50,000, for a supply, a non-supply reason such as return or job work, or inward supply from an unregistered person. Goods and cases exempted under Rule 138(14) are outside this rule. The number is generated on furnishing Part A; Part B gives transport details.

Understand E-Way Bill Basics and Legal Provisions

Think of the e-way bill as a digital travel permit for goods. GST law wants a tracking tool so that officers can check, on the road, that goods moving are covered by proper documents and tax has been paid. The e-way bill does that job.

The rule is in Rule 138 of the CGST Rules, 2017, made under section 68 of the CGST Act. Section 68 says a person in charge of a conveyance carrying any consignment of goods exceeding the prescribed value must carry the prescribed documents and devices. The e-way bill is one such prescribed document.

The general trigger is simple. Where goods are moved in a conveyance and the consignment value exceeds ₹50,000, an e-way bill is needed. Movement may be in relation to a supply, for reasons other than supply (such as return or job work), or due to inward supply from an unregistered person.

This ₹50,000 test is subject to the goods and cases exempted under Rule 138(14) and its Annexure. For those exempted goods or movements, no e-way bill is required whatever the value. So the value test applies only after you are sure the goods or movement are not on the exempted list.

The consignment value is worked out as per the Explanation to Rule 138. It is the value of the goods determined under section 15 of the CGST Act, plus central tax, State tax, UTGST, integrated tax and cess charged in the document, but excluding the value of exempt supply. Always read the question to see which value it gives. The threshold is tested on the consignment value as shown in the invoice, bill of supply or delivery challan (or the documents) issued for the consignment. Several invoices can travel in one conveyance, so follow the question's facts on whether they form one consignment.

The e-way bill has two parts. Part A has the details of the goods: GSTIN of the recipient, place of delivery (PIN code), invoice or challan number and date, value, HSN code, and reason for transportation. Part B has the transport details: the vehicle number for movement by road, or the transport document number and date for movement by rail, air or ship. A unique e-way bill number (EBN) is generated when Part A is furnished. Part B must be furnished before the goods move.

Who generates it depends on who causes the movement. A registered person who causes the movement must generate it. This may be the supplier or the recipient, depending on who causes the goods to move. Where goods are supplied by an unregistered supplier to a registered recipient, the registered recipient must comply with the e-way bill requirement. Where a registered person hands goods over to a transporter, the registered person furnishes the Part A information on the common portal and the transporter generates the e-way bill on that basis. An unregistered person may also generate an e-way bill on the common portal, and so may a transporter where the registered person is not obliged to generate it. Under Rule 138 that generation is voluntary.

Key rules to remember

Source of the rule: Section 68 CGST Act, 2017 + Rule 138 CGST Rules, 2017; Section 68 empowers the e-way bill requirement; Rule 138 gives the procedure.
General value threshold: E-way bill required if consignment value > ₹50,000; Exactly ₹50,000 does not need an e-way bill under the general rule. Test the consignment value as shown in the invoice, bill of supply or delivery challan issued for the consignment, worked out as per the Explanation to Rule 138. Follow the question's facts on whether several invoices form one consignment.
Two parts of the form: Part A = goods and supply details (EBN generated on furnishing Part A); Part B = transport details (vehicle number for road; transport document number and date for rail, air or ship); The EBN is generated when Part A is furnished. Part B must be furnished before the goods move.
Who generates: Registered person causing the movement (supplier or recipient) must generate; where goods come from an unregistered supplier, the registered recipient must comply; if a registered person hands goods to a transporter, the registered person furnishes Part A and the transporter generates on that basis; generation by an unregistered person, or by a transporter where the registered person is not obliged, is voluntary; The duty lies on the registered person who causes the movement. For inward supply from an unregistered supplier, the duty is on the registered recipient. A transporter who receives goods from a registered person generates the e-way bill on the basis of Part A. Only generation by an unregistered person, or by a transporter where the registered person is not obliged, is voluntary under Rule 138.
Time of generation: Before the commencement of movement of goods; Generate it before the vehicle starts moving, not after.
Value of consignment: Value determined under section 15 + central tax + State tax + UTGST + integrated tax + cess charged in the document, excluding value of exempt supply (Explanation to Rule 138); Taxes are those charged in the document. The value of exempt supply is excluded.

How to solve E-Way Bill Basics and Legal Provisions questions

Use this order for any question on whether an e-way bill is needed, who must generate it, and when.

1Identify whether there is a movement of goods. Services alone never need an e-way bill.
2Find the reason for movement: supply, return, job work, or inward supply from an unregistered person.
3Compute the consignment value as per the Explanation to Rule 138: value under section 15 plus the central tax, State tax, UTGST, integrated tax and cess charged, less the value of exempt supply. Test it on the value shown in the invoice, bill of supply or delivery challan issued for the consignment. Follow the question's facts on whether several invoices in one conveyance form one consignment.
4Compare with ₹50,000. If the value is more than ₹50,000, the general rule applies. Check for any special rule in the question, such as an exemption.
5Decide who generates it: the registered person who causes the movement (supplier or recipient). If goods come from an unregistered supplier, the registered recipient must comply. If a transporter is used, the registered person furnishes Part A and the transporter generates it on that basis.
6State the timing: before movement starts. The EBN is generated on furnishing Part A, and Part B must be furnished before the goods move: the vehicle number for road, or the transport document number and date for rail, air or ship.
7Write a conclusion that cites Rule 138 and states clearly whether an e-way bill is required.

Quickest way: Threshold, mover, timing in 30 seconds

When to use it: Use for MCQs and for short written parts where the question asks whether an e-way bill is needed.

For MCQs, first circle the consignment value and test it against ₹50,000. Values equal to or below the limit are traps.
Check whether tax is included in the given value. If the question gives the value before tax and the rate, add tax first.
Look for key words. If the invoice includes 'exempt supply', its value is excluded from the consignment value, so leave it out before testing ₹50,000. This is different from goods listed as exempt from the e-way bill requirement under Rule 138(14): for those goods, no e-way bill is needed whatever the value. 'Job work' and 'return' are triggers, not exceptions: they still need an e-way bill once the value exceeds ₹50,000.
For written answers, use the layout: Provision (Rule 138) – Facts (consignment value worked out as per the Explanation to Rule 138, mover, reason) – Conclusion (required or not, who generates). A clear layout helps you present the answer.
Never leave an MCQ blank; there is no negative marking.

Common mistakes in E-Way Bill Basics and Legal Provisions

Saying an e-way bill is needed when the value is exactly ₹50,000.
Students read the limit as 'up to and including ₹50,000'.
Fix: Remember it is required only when the value exceeds ₹50,000. At ₹50,000 or less the general rule does not apply.
Using the value before tax when the question gives tax separately.
Students focus on the basic price and forget that the consignment value includes the taxes charged in the document.
Fix: Add the central tax, State tax, UTGST, integrated tax and cess charged to the section 15 value, then test against ₹50,000.
Testing the invoice total without removing the value of exempt supply.
Students take the full amount printed on the invoice as the consignment value.
Fix: Work out the value as per the Explanation to Rule 138 and exclude the value of exempt supply before comparing with ₹50,000. The exclusion covers only the value of the exempt supply, not the taxable supply in the same invoice. Do not mix this up with the separate exemption for goods listed under Rule 138(14): those goods need no e-way bill whatever their value. Also remember that an e-way bill may still be generated voluntarily for lower values.
Thinking only the supplier can generate the e-way bill.
The usual case is a supplier sending goods, so other cases are forgotten.
Fix: Remember that the registered person causing the movement generates it, which can be the recipient in some cases. Where goods come from an unregistered supplier, the registered recipient must comply. Where a registered person hands goods to a transporter, the transporter generates it on the basis of Part A information given by the registered person. Generation by an unregistered person, or by a transporter where the registered person is not obliged, is voluntary.
Believing an e-way bill is needed only for sales.
The word 'supply' is read narrowly as 'sale'.
Fix: Movement for reasons other than supply, such as return of goods or job work, can also need an e-way bill if the value limit is crossed.
Forgetting Part B, or generating the e-way bill after the goods start moving.
Students memorise only the value limit and ignore the form's structure and timing.
Fix: State clearly that the EBN is generated on furnishing Part A, that Part B (vehicle number for road; transport document number and date for rail, air or ship) must be furnished before the goods move, and that this is all done before movement begins.

Worked examples

Example 1

Alpha Traders, a registered person in Pune, sells goods to Beta Ltd, a registered person in Nashik, in a single vehicle. The taxable value is ₹45,000 and GST at 18% is charged separately in the invoice. There is no exempt supply in the invoice. Is an e-way bill required under Rule 138? Who should generate it?

Show the solution

Movement of goods takes place for a supply from Pune to Nashik, so Rule 138 can apply.
As per the Explanation to Rule 138, the consignment value is the section 15 value plus the tax charged in the document, excluding exempt supply. There is none here.
GST charged = 18% × ₹45,000 = ₹8,100.
Consignment value = ₹45,000 + ₹8,100 = ₹53,100.
Compare: ₹53,100 is more than ₹50,000, so the general threshold is crossed.
The supplier, Alpha Traders, is a registered person who causes the movement. It should generate the e-way bill by furnishing Part A (goods details), and furnish Part B (vehicle number) before the goods start moving by road.

Answer: Yes. The consignment value, worked out as per the Explanation to Rule 138, is ₹53,100, which exceeds ₹50,000, so an e-way bill is required. Alpha Traders should generate it before the movement starts.

Example 2

Ravi, a registered dealer, sends goods to one customer in his own vehicle under a single invoice. The invoice shows taxable goods of ₹40,000 on which GST at 12% is charged separately, and exempt goods of ₹15,000. Is an e-way bill required under the general rule? Give reasons.

Show the solution

This is one invoice to one customer, so the invoice is the consignment to be tested.
As per the Explanation to Rule 138, the consignment value is the section 15 value plus the tax charged in the document, excluding the value of exempt supply.
GST charged = 12% × ₹40,000 = ₹4,800.
Consignment value = ₹40,000 + ₹4,800 = ₹44,800. The exempt goods of ₹15,000 are left out.
The invoice total is ₹40,000 + ₹4,800 + ₹15,000 = ₹59,800, but this is not the value to test.
Compare: ₹44,800 is not more than ₹50,000, so the general threshold is not crossed.

Answer: No. The consignment value, worked out as per the Explanation to Rule 138, is ₹44,800, which does not exceed ₹50,000, so an e-way bill is not required under the general rule. Ravi may still generate one voluntarily.

Exam tips

In MCQs, the usual trap is the threshold: values like ₹50,000 exactly, or a basic price below ₹50,000 that crosses the limit once tax is added.
Write answers in provision, facts, conclusion format. Cite Rule 138 of the CGST Rules, 2017 and section 68 of the CGST Act, 2017, and state the consignment value as per the Explanation to Rule 138.
Do the tax addition in a visible line (value + GST = total). Show the working clearly so the examiner can follow your answer.
Read who is registered and who causes the movement. Questions often test whether the supplier, the recipient or the transporter generates the e-way bill, and what applies when the supplier is unregistered.
Revise this topic with the validity, exemptions and detention rules, since a single case study may combine them.

Practice questions from E-Way Bill

E-Way Bill Basics and Legal Provisions in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

E-Way Bill Basics and Legal Provisions: frequently asked questions

What is an e-way bill under GST?

It is an electronic document generated on the common portal that must accompany goods in movement above the prescribed value. It is governed by Rule 138 of the CGST Rules, 2017 and helps officers verify goods in transit.

Is an e-way bill needed for ₹50,000 exactly?

No. Under the general rule, an e-way bill is needed only when the consignment value exceeds ₹50,000. At ₹50,000 or below it is not mandatory, though it can be generated voluntarily.

Who must generate the e-way bill?

The registered person who causes the movement must generate it. This is usually the supplier, but it can be the recipient where the recipient causes the movement. Where goods come from an unregistered supplier, the registered recipient must comply. If a registered person hands goods to a transporter, the registered person furnishes Part A and the transporter generates it on that basis. Generation by an unregistered person, or by a transporter where the registered person is not obliged, is voluntary.

What are Part A and Part B of the e-way bill?

Part A contains details of the goods and the supply, such as recipient GSTIN, invoice details, value and HSN. The e-way bill number is generated when Part A is furnished. Part B contains the transport details: the vehicle number for road movement, or the transport document number and date for rail, air or ship. It must be furnished before the goods move.

Does the value include GST?

Yes. As per the Explanation to Rule 138, the consignment value is the value determined under section 15 plus central tax, State tax, UTGST, integrated tax and cess charged in the document. The value of exempt supply is excluded.