Taxation · E-Way Bill

Exemptions and Special Cases of E-Way Bill

Updated 5 October 2026

An e-way bill is needed when consignment value exceeds ₹50,000, unless an exemption applies: listed or exempt goods, non-motorised transport, some customs movements. Two cases ignore value: a principal sending goods to a job worker in another State, and inter-state handicraft goods moved by a person exempt from registration under Section 24(i) and (ii).

Understand Exemptions and Special Cases of E-Way Bill

An e-way bill is an electronic document that must accompany goods in movement. It is a rule under the CGST Rules, 2017 (Rule 138), not a tax. The default rule is simple: if the consignment value is more than ₹50,000, you need one. This applies whether the movement is for a supply, for a reason other than supply (such as return, sales on approval or own use), or because of an inward supply from an unregistered person.

The exemptions are carved out of this default. You can sort them into groups: (1) the nature of goods, (2) the mode of transport, (3) the route or customs situation, and (4) the value. Learn them as groups, not as a long list. It makes recall under time pressure much easier.

The special cases work the other way. For two situations the value limit is switched off. First, when a registered principal located in one State sends goods to a job worker located in another State, the principal must generate the e-way bill whatever the value. This value override covers only the principal's inter-state movement of goods to the job worker. It does not make every job work movement subject to an e-way bill. For other movements, apply the general Rule 138 provisions and the ₹50,000 limit. Second, handicraft goods moved from one State to another by a person who is exempt from registration under clauses (i) and (ii) of Section 24 need an e-way bill whatever the value. That person generates it on the common portal. The idea is that these small, scattered movements would otherwise escape tracking.

Two more points often confuse students. First, an e-way bill relates only to goods. A pure supply of services never needs one. Second, the State-wise intra-state rules vary. States can set their own value limits and exemptions for movement inside the State, so the answer for intra-state movement depends on the State's notification. In the exam, state the central rule and mention that States may notify differently.

Key rules to remember

Basic threshold: E-way bill required if consignment value > ₹50,000; Value exactly ₹50,000 or less does not need one. It can still be generated voluntarily.
Consignment value: Value per Section 15 as declared in invoice, bill of supply or delivery challan + taxes (CGST, SGST/UTGST, IGST, cess) − value of exempt goods on a mixed invoice; Tax is included in the value. Exempt goods billed together with taxable goods are left out.
Goods exempt from e-way bill: Goods in the Rule 138(14) annexure (clause (a)) + goods exempt from tax (Rule 138(14)(d)); Rule 138(14)(a) exempts the goods in its annexure. These include LPG for household and similar customers, kerosene under PDS, postal baggage, jewellery and precious articles, currency, used personal and household effects, and coral. Goods exempt from tax are covered by clause (d) of Rule 138(14), read with the exemption notification. Keep two groups apart. Alcohol for human consumption is outside GST. Petroleum crude, high speed diesel (HSD), petrol, natural gas and ATF are GST goods, but GST is not levied on them at present. Do not call these five 'outside GST'. Alcohol for human consumption and these five petroleum products are covered by the Rule 138(14) annexure (clause (a)), not by clause (d). Movement of goods for a reason other than supply (such as return, sales on approval or own use) is not an exemption. It needs an e-way bill if the consignment value is above ₹50,000. Always check the latest list.
Exempt modes and situations: No e-way bill for non-motorised conveyance, port/airport/land customs station to ICD or CFS for customs clearance, and transit cargo to or from Nepal or Bhutan; Some movements under customs supervision or seal are also exempt.
Job work special rule: Registered principal located in one State sends goods to a job worker located in another State: e-way bill generated by the principal, irrespective of value; This is a mandatory case. The value override covers only the principal's inter-state movement of goods to the job worker. It does not mean all job work needs an e-way bill. For other movements, apply the general Rule 138 provisions and the ₹50,000 limit.
Handicraft special rule: Handicraft goods moved from one State to another by a person exempt from registration under Section 24(i) and (ii): e-way bill generated by that person, irrespective of value; Applies to inter-state movement only. The e-way bill is generated on the common portal. In other cases, the usual Rule 138 rules apply.
Part B exemption for short distance: Part B (vehicle details) not required where goods are transported by road, within the same State, up to 50 km, between the consignor or consignee and the transporter's place of business, for transfer or delivery to the transporter (Rule 138(5)(a)); This is a narrow rule. It covers only road movement within the same State, up to 50 km, between the consignor or consignee and the transporter's place of business, for the purpose of transfer or delivery to the transporter. Part A is still filled. Only vehicle details are waived for this short movement.

How to solve Exemptions and Special Cases of E-Way Bill questions

Use this order for any question asking whether an e-way bill is needed. Stop at the first step that gives a definite answer.

1Check whether the movement involves goods. If it is only services, no e-way bill is needed.
2Check the goods. If they are on the exempt or listed goods list (the Rule 138(14) annexure), or the goods are exempt from tax, no e-way bill is needed. A movement for a reason other than supply (return, approval sales, own use) is not an exemption. Apply the ₹50,000 limit to it.
3Check the mode and route. Non-motorised conveyance, customs clearance movement to ICD or CFS, and Nepal or Bhutan transit need no e-way bill.
4Check for the special cases. A principal located in one State sending goods to a job worker in another State must generate an e-way bill whatever the value. Inter-state handicraft goods moved by a person exempt from registration under Section 24(i) and (ii) also need one whatever the value. Do not extend the job work rule to same-State movement.
5Compute the consignment value with tax included and exempt goods on a mixed invoice excluded. Compare it with ₹50,000.
6For intra-state movement, say that the State's own threshold or exemption notification may apply. Then apply the question's given facts.
7Write a clear conclusion: required or not required, and who must generate it.

Quickest way: Four-gate filter for MCQs and written answers

When to use it: Use it for scenario MCQs and for short-answer questions where you must justify a yes or no.

Gate 1: Goods or services? Services means no.
Gate 2: Special case? That means a principal sending goods to a job worker in another State, or inter-state handicraft goods moved by a person exempt from registration under Section 24(i) and (ii). If yes, required, ignore value. Same-State job work does not qualify.
Gate 3: Exempt goods, non-motorised vehicle or customs/Nepal-Bhutan movement? If yes, not required.
Gate 4: Value with tax, excluding exempt goods, above ₹50,000? If yes, required; otherwise not.
For MCQs, eliminate options that ignore the job work or handicraft override. Watch for options that compare ₹50,000 with the pre-tax value.
For written answers, use the format: Provision (Rule 138) → Facts → Conclusion. Write the value working in one line to earn step marks.

Common mistakes in Exemptions and Special Cases of E-Way Bill

Applying the ₹50,000 limit to job work goods sent to another State.
Students remember the threshold as universal.
Fix: Remember the override: principal to job worker in another State means an e-way bill irrespective of value.
Comparing ₹50,000 with the value before tax.
The invoice shows taxable value first, and tax is shown separately.
Fix: Consignment value includes CGST, SGST/UTGST, IGST and cess. Add the tax before comparing.
Including exempt goods in the consignment value of a mixed invoice.
Students total the entire invoice.
Fix: Remove the exempt goods' value, then add tax on the taxable goods.
Saying an e-way bill is needed for services.
Students confuse transport of goods with supply of transport services.
Fix: The e-way bill concerns movement of goods only. Pure services never need one.
Saying an e-way bill is needed only when there is a supply.
The word 'supply' dominates GST study.
Fix: It is also needed for movement without supply (return, approval sales, own use) and for inward supply from an unregistered person, if the value exceeds ₹50,000.
Treating intra-state rules as the same in every State.
Students learn only the central rule.
Fix: State that States may notify their own thresholds and exemptions for intra-state movement. Then answer using the facts given.

Worked examples

Example 1

Decide whether an e-way bill is required in each case. (a) A registered dealer sends goods worth ₹40,000 by motor vehicle to a customer in the same State. (b) A registered principal in Gujarat sends goods worth ₹30,000 to a job worker in Rajasthan. (c) A trader moves goods worth ₹90,000 by hand-cart (non-motorised) within the city.

Show the solution

Case (a): This is a movement of goods in relation to a supply. The value is ₹40,000, which is not above ₹50,000. No special case applies. No e-way bill is required.
Case (b): The principal is in one State and the job worker is in another. This is the job work special case. The e-way bill must be generated by the principal irrespective of value. So ₹30,000 does not matter.
Case (c): The value ₹90,000 is above ₹50,000. But the goods are moved by a non-motorised conveyance, which is exempt. No e-way bill is required.

Answer: (a) Not required. (b) Required, to be generated by the principal. (c) Not required.

Example 2

A registered supplier issues one invoice for goods moved by truck to another State: taxable goods ₹45,000 (IGST 18%) and exempt goods ₹30,000. Is an e-way bill required?

Show the solution

The invoice covers both taxable and exempt goods, so the value of exempt goods is excluded from the consignment value.
Taxable value = ₹45,000.
IGST at 18% = ₹45,000 × 18 ÷ 100 = ₹8,100.
Consignment value = ₹45,000 + ₹8,100 = ₹53,100.
Compare: ₹53,100 is more than ₹50,000.

Answer: An e-way bill is required, since the consignment value of ₹53,100 exceeds ₹50,000. Note that the pre-tax value of ₹45,000 alone would have wrongly suggested no e-way bill.

Exam tips

Learn the exemptions in four groups: goods, transport mode, customs or border movement, and value. Examiners test one scenario per group.
In a numerical question, always show the line: taxable value + tax = consignment value. Many step marks are awarded for it.
For job work and handicraft, always write the words 'inter-state' and 'irrespective of value'. Remove either one and the answer is half right.
In MCQs, watch for options that say 'only if value exceeds ₹50,000' when the facts show a job work movement to another State.
For intra-state questions, add one line that States may notify different thresholds and exemptions, then conclude on the given facts.

Practice questions from E-Way Bill

Exemptions and Special Cases of E-Way Bill: frequently asked questions

Which goods are exempt from the e-way bill requirement?

Goods in the annexure to Rule 138(14) (clause (a)) and goods exempt from tax (Rule 138(14)(d), read with the exemption notification) need no e-way bill. The annexure includes items such as LPG for household use, kerosene under PDS, postal baggage, jewellery, currency, used household effects and coral. Alcohol for human consumption is outside GST. Petroleum crude, high speed diesel, petrol, natural gas and ATF are GST goods on which GST is not levied at present, so do not call them 'outside GST'. Alcohol and these five petroleum products are covered by the annexure under clause (a), not clause (d). Movement for a reason other than supply is not exempt and needs an e-way bill above ₹50,000. Check the latest list before the exam.

Is an e-way bill needed for job work goods?

If a registered principal located in one State sends goods to a job worker located in another State, the principal must generate the e-way bill whatever the value. This value override covers only that inter-state movement by the principal. For other movements, apply the general Rule 138 provisions and the ₹50,000 limit.

Is an e-way bill required for handicraft goods?

For handicraft goods moved from one State to another by a person exempt from registration under Section 24(i) and (ii), the e-way bill must be generated irrespective of value. It is generated on the common portal. For other cases, the usual Rule 138 rules and the ₹50,000 limit apply. Note the condition: it covers inter-state movement only.

Do services need an e-way bill?

No. An e-way bill is for movement of goods only. A supply of services, even transport services, does not need one. The goods carried by a transporter may need one, depending on their value.

Is an e-way bill needed when goods move without a supply?

Yes, if the consignment value is above ₹50,000. Examples are goods sent for exhibition, return, sales on approval or own use. Movement due to an inward supply from an unregistered person is also covered.