Indirect Tax Laws and Practice · E-way Bill

Exemptions from E-way Bill Requirement under Rule 138(14)

Updated 11 October 2026 · Fact-checked

Rule 138(14) of the CGST Rules, 2017 lists cases where no e-way bill is needed even if the consignment exceeds ₹50,000. They cover listed goods (Annexure), non-motorised transport, customs movements, exempt or no-supply goods, empty containers and short trips to a weighbridge. Check the goods, the mode and the situation, in that order.

Understand Exemptions from E-way Bill Requirement

An e-way bill is generally needed when a registered person moves goods with a consignment value above ₹50,000. Rule 138(14) then says: "Notwithstanding anything contained in this rule, no e-way bill is required to be generated" in the cases it lists. So the exemptions override the general rule.

Think of the exemptions in three groups. First, goods-based exemptions: goods in the Annexure (such as LPG for household and NDEC customers, PDS kerosene, postal baggage by the Department of Posts, Chapter 71 items like pearls, precious stones, precious metals and jewellery other than imitation jewellery, currency, used personal and household effects, and coral); goods in the Schedule to Notification No. 2/2017-Central Tax (Rate), other than de-oiled cake; goods exempt under Notifications 7/2017 and 26/2017-Central Tax (Rate); and alcoholic liquor for human consumption, petroleum crude, high speed diesel, motor spirit (petrol), natural gas and aviation turbine fuel.

Second, mode or party-based exemptions: goods moved by a non-motorised conveyance; movement caused by a defence formation under the Ministry of Defence as consignor or consignee; goods moved by rail where the consignor is the Central Government, a State Government or a local authority; transit cargo from or to Nepal or Bhutan.

Third, situation-based exemptions: movement from a customs port, airport, air cargo complex or land customs station to an ICD or CFS for customs clearance; movement under customs bond or customs supervision or seal; supplies treated as no supply under Schedule III; empty cargo containers; empty LPG packing cylinders moved for reasons other than supply; movement within areas notified by a State or UT; and movement up to 20 km between the consignor's place of business and a weighbridge and back, accompanied by a delivery challan issued under rule 55.

Separately, some relaxations are not exemptions. Part B (vehicle details) may be skipped for goods moved up to 50 km within the State or UT from the consignor to the transporter, or from the transporter to the consignee. The e-way bill is still generated in those cases.

Key rules to remember

Basic trigger: E-way bill needed if consignment value > ₹50,000 (rule 138(1)), unless a rule 138(14) exemption applies; Consignment value includes taxes and cess charged in the document and excludes the value of exempt supply in a mixed invoice.
Annexure goods: LPG (household/NDEC), PDS kerosene, postal baggage, Chapter 71 goods (not imitation jewellery 7117), currency, used personal and household effects, coral; These are listed in the Annexure under rule 138(14)(a).
Fuel and liquor: Alcohol for human consumption, petroleum crude, HSD, petrol, natural gas, ATF; Exempt under clause (f).
Weighbridge rule: Distance ≤ 20 km to or from weighbridge + delivery challan under rule 55; Clause (n). Both conditions must be met.
Short-distance Part B relaxation: Distance ≤ 50 km within the State/UT (consignor to transporter, or transporter to consignee): Part B details may be omitted; E-way bill is still required. This is not an exemption.
Job work between States: Principal in one State, job worker in another: e-way bill required irrespective of value; Proviso to rule 138(1). It can be generated by the principal or the registered job worker.
Handicraft goods: Unregistered person exempt under section 24(i) and (ii) moving handicraft goods inter-State: e-way bill required irrespective of value; Proviso to rule 138(1).

How to solve Exemptions from E-way Bill Requirement questions

Use this order for any question asking whether an e-way bill is needed.

1Check the basics: is the person registered, and does the consignment value exceed ₹50,000 (with taxes included)? Note any special provisos, such as inter-State job work or handicrafts, that apply irrespective of value.
2Identify the goods. Match them against the Annexure, the fuel and liquor list, and exempt or nil-rated goods under the notifications.
3Identify the mode and party: non-motorised conveyance, rail with a Government consignor, defence formation, Nepal or Bhutan transit.
4Identify the situation: customs movement, ICD or CFS, bond or seal, Schedule III no-supply, empty containers or cylinders.
5Check distance conditions: the weighbridge limit of 20 km with a delivery challan, and the 50 km Part B relaxation, which is not an exemption.
6If the invoice mixes exempt and taxable goods, exclude the exempt value and test the rest against ₹50,000.
7State the conclusion with the clause reason, and mention any document needed, such as a delivery challan.

Quickest way: Goods, mode, situation scan

When to use it: Use for MCQs and short case scenarios where you must decide quickly whether an e-way bill is required.

Ask: are the goods petrol, diesel, crude, ATF, natural gas, liquor, jewellery, currency or used household effects? If yes, exempt.
Ask: is it a non-motorised vehicle, a defence movement, Nepal or Bhutan transit, or customs-controlled movement? If yes, exempt.
Ask: is it a weighbridge trip of 20 km or less with a delivery challan? If yes, exempt.
If none apply, fall back to the ₹50,000 test and the provisos.

Common mistakes in Exemptions from E-way Bill Requirement

Treating the 50 km Part B relaxation as an exemption from the e-way bill.
Both rules talk about short distances and students blur them.
Fix: Remember that the 50 km relaxation only lets you skip vehicle details. The bill is still generated. Only the 20 km weighbridge case is a true exemption.
Claiming the weighbridge exemption without a delivery challan.
Students remember the 20 km limit and forget the condition.
Fix: Clause (n) requires the movement to be accompanied by a delivery challan issued under rule 55. State both conditions.
Saying all jewellery is exempt.
Chapter 71 is remembered as a whole.
Fix: Imitation jewellery (7117) is excepted from the Annexure entry, so an e-way bill is needed for it.
Applying the ₹50,000 threshold to inter-State job work or handicraft movements.
Students assume value is always the test.
Fix: The provisos to rule 138(1) require an e-way bill irrespective of value for inter-State principal-to-job-worker movements and for exempted unregistered handicraft dealers moving goods inter-State.
Assuming exempt goods under the notifications need a bill if the value is large.
Students focus on value rather than the notwithstanding clause.
Fix: Rule 138(14) overrides the value test. If the goods are exempt under clause (j), no bill is needed whatever the value.

Worked examples

Example 1

Sharma Traders, Jaipur, sends a consignment of high speed diesel worth ₹4,00,000 by road to a customer in Delhi. Is an e-way bill required?

Show the solution

The value exceeds ₹50,000 and the goods move inter-State, so the general rule would require a bill.
Rule 138(14)(f) exempts high speed diesel from the e-way bill requirement.
Clause (14) applies notwithstanding the rest of the rule, so value does not matter.

Answer: No e-way bill is required, because high speed diesel is exempt under rule 138(14)(f).

Example 2

Kaveri Steels, Chennai, moves goods worth ₹2,00,000 from its factory to a weighbridge 15 km away and back for weighment. (a) It carries a delivery challan issued under rule 55. (b) It carries no delivery challan. Is an e-way bill required?

Show the solution

The value exceeds ₹50,000, so the general rule applies unless an exemption fits.
Clause (n) exempts movement up to 20 km from the consignor's place of business to a weighbridge and back, if accompanied by a delivery challan under rule 55.
The distance of 15 km is within 20 km.
In case (a) both conditions are met, so the movement is exempt.
In case (b) the delivery challan condition fails, so no exemption applies and the e-way bill rule applies.

Answer: (a) No e-way bill is required. (b) An e-way bill is required, since the delivery challan condition is not met.

Exam tips

Learn the Annexure list and the fuel and liquor list as two short mnemonics; MCQs often test one item against a near-miss such as imitation jewellery.
Always separate exemptions (rule 138(14)) from relaxations (50 km Part B, validity extension).
In case scenarios, check for provisos that apply irrespective of value, such as inter-State job work.
When you answer a descriptive question, cite the clause letter and name the condition that makes the exemption work.

Practice questions from E-way Bill

Exemptions from E-way Bill Requirement in other exams

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

Exemptions from E-way Bill Requirement: frequently asked questions

Which goods are exempt from e-way bill under rule 138(14)?

The Annexure goods, such as LPG for household and NDEC customers, PDS kerosene, postal baggage, Chapter 71 goods other than imitation jewellery, currency, used personal and household effects and coral. Alcoholic liquor for human consumption, petroleum crude, high speed diesel, petrol, natural gas and ATF are also exempt. So are goods in the notified Schedule and goods exempt under the notified exemption notifications.

Is an e-way bill needed for movement within 20 km for job work?

The rule has no general 20 km job work exemption. The 20 km exemption covers movement between the consignor's place of business and a weighbridge, with a delivery challan under rule 55. For job work, inter-State movement from a principal to a job worker needs an e-way bill irrespective of value.

Is an e-way bill needed if goods move by a non-motorised conveyance?

No. Clause (b) of rule 138(14) exempts goods transported by a non-motorised conveyance.

Do I need an e-way bill for goods moved from a port to a container freight station?

No, if the goods move from a customs port, airport, air cargo complex or land customs station to an ICD or CFS for customs clearance. This is covered by clause (c).