Direct and Indirect Taxation · Tax Invoice - Electronic Way Bill

E-Way Bill in GST: When Is It Required?

Updated 10 October 2026 · Fact-checked

An e-way bill is an electronic document generated on the common portal before goods move. Under Rule 138, a registered person moving goods with a consignment value above ₹50,000 must furnish Part A of FORM GST EWB-01 first, then Part B (vehicle details) for road movement. Listed goods and movements are exempt.

Understand Electronic Way Bill: Concept and When It Is Required

An e-way bill is an electronic record that goods are moving. It is generated on the GST common portal and carries a unique e-way bill number (EBN). It replaces the need for paper permits at state borders. Officers can check the movement against it in transit.

Rule 138(1) says it applies to every registered person who causes movement of goods of consignment value exceeding ₹50,000. The movement can be (i) in relation to a supply, (ii) for reasons other than supply (for example, stock transfer or sending goods for repair), or (iii) due to inward supply from an unregistered person. So the rule is wider than a sale.

Consignment value is the value under section 15 declared in the invoice, bill of supply or delivery challan. It includes CGST, SGST/UTGST, IGST and cess charged in the document. Where one invoice covers both exempt and taxable goods, the value of the exempt goods is excluded. Note the test is "exceeding" ₹50,000, so exactly ₹50,000 does not need a bill.

The bill has two parts. Part A holds details of the goods and parties. Part B holds conveyance (vehicle) details. For movement by road, the e-way bill is not valid unless Part B is furnished, except in the cases the rule itself excuses.

Who generates it? The consignor or the recipient if they transport the goods. If goods are handed to a transporter and no bill was generated, the registered person gives transporter details and the transporter generates it. A transporter, e-commerce operator or courier agency can furnish Part A on authorisation. Some goods and movements need no e-way bill at all (see the exemption list).

Key rules to remember

Threshold (Rule 138(1)): E-way bill needed if consignment value > ₹50,000; Applies to a registered person moving goods for supply, for reasons other than supply, or on inward supply from an unregistered person. Exactly ₹50,000 is not covered.
Consignment value (Explanation 2): Consignment value = section 15 value in the document + CGST + SGST/UTGST + IGST + cess charged − value of exempt goods in a mixed invoice; Taxes are included only if charged in the document.
Who generates by road (Rule 138(2), (3)): Consignor or consignee moving the goods → generates after Part B; goods given to transporter without a bill → transporter generates from Part A details; Transporter, e-commerce operator or courier agency may furnish Part A on authorisation.
Transport by rail, air or vessel (Rule 138(2A)): Supplier or recipient generates; Part B may be furnished before or after movement; For rail, the railways will not deliver goods unless the e-way bill is produced at delivery.
Job work, different States (third proviso): Principal in one State sends goods to job worker in another State → bill by principal or job worker (if registered), irrespective of value; No ₹50,000 limit applies here.
Handicraft goods (fourth proviso): Exempt-from-registration person moving handicraft goods inter-State → must generate e-way bill, irrespective of value; Applies to persons exempted under section 24(i) and (ii).
Voluntary generation (Rule 138(3) provisos): Registered person or transporter may generate even if value is below ₹50,000; unregistered person may also opt; An unregistered person enrols using FORM GST ENR-03.
Transporter duty (Rule 138(7)): No bill by consignor/consignee and aggregate consignment value in conveyance > ₹50,000 → transporter generates for inter-State supply; Not for goods moved by railways, air or vessel.
Deemed acceptance (Rule 138(12)): No acceptance or rejection within 72 hours or by time of delivery, whichever is earlier → deemed accepted; Applies to the person to whom the details were made available.

How to solve Electronic Way Bill: Concept and When It Is Required questions

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

1Check the goods and movement against the no-bill list in Rule 138(14), for example the Annexure goods, non-motorised conveyance, alcoholic liquor for human consumption, petrol, diesel, crude, natural gas and ATF, transit cargo to or from Nepal or Bhutan, or movement that is no supply under Schedule III. If it fits, answer: no e-way bill.
2Check for value-free cases: job work inter-State, or handicraft goods moved inter-State by a person exempt from registration. The bill is needed whatever the value.
3Compute consignment value: invoice value plus taxes charged, minus exempt goods in a mixed invoice.
4Compare with ₹50,000. If value exceeds it and the person is registered, a bill is required whether the movement is a supply, a non-supply reason or an inward supply from an unregistered person.
5Decide who generates: the consignor or recipient if moving the goods; otherwise the transporter on details supplied. State the Part A and Part B split.
6Note options and special rules: voluntary generation below the limit, unregistered person opting in, and the 50 km transporter proviso on Part B.
7Write a one-line conclusion tied to Rule 138.

Quickest way: Exempt? Value? Who? in three checks

When to use it: Use it for MCQs and short case-based questions where you must decide quickly.

Exempt movement or exempt goods? If yes, stop: no bill.
Special no-limit case (inter-State job work, handicraft)? If yes, bill needed.
Otherwise, is the full consignment value (with taxes, without exempt goods) more than ₹50,000? Only then is a bill required.

Common mistakes in Electronic Way Bill: Concept and When It Is Required

Treating ₹50,000 exactly as needing an e-way bill.
Students read the limit as "₹50,000 and above".
Fix: The rule says "exceeding" ₹50,000. A consignment of exactly ₹50,000 does not require a bill, though it may be generated voluntarily.
Computing value without the GST charged in the invoice.
Students use taxable value only.
Fix: Consignment value includes CGST, SGST/UTGST, IGST and cess charged in the document. Add them before comparing with the limit.
Thinking an e-way bill is needed only for a sale.
The word 'supply' dominates the chapter.
Fix: Rule 138(1) also covers movement for reasons other than supply and inward supply from an unregistered person.
Applying the ₹50,000 limit to inter-State job work and handicraft cases.
Students memorise the limit and ignore the provisos.
Fix: For inter-State job work and for handicraft goods moved by a person exempt from registration, a bill is needed irrespective of value.
Including exempt goods in the consignment value of a mixed invoice.
Students take the invoice total.
Fix: Explanation 2 excludes the value of exempt supply of goods where one invoice covers both exempt and taxable goods.
Saying a bill is valid for road movement with Part A alone.
Students forget there are two parts.
Fix: Part B (vehicle details) is needed for road movement validity, subject to the exceptions in the rule.

Worked examples

Example 1

Sharma Traders, Jaipur (registered), sends goods to Mehta Stores, Delhi under one invoice. Taxable goods value ₹42,000; IGST charged ₹7,560; exempt goods value ₹9,000. No other charges. Is an e-way bill required? Who generates it if the goods are handed to a transporter?

Show the solution

The invoice covers taxable and exempt goods, so exempt goods value is excluded from consignment value.
Consignment value = taxable value ₹42,000 + IGST ₹7,560 = ₹49,560. Exempt ₹9,000 is excluded.
Compare: ₹49,560 does not exceed ₹50,000.
No special case (job work, handicraft) applies, so there is no mandatory requirement.
Sharma Traders or the transporter may still generate one at their option under the first proviso to Rule 138(3).

Answer: No e-way bill is compulsory, as the consignment value is ₹49,560 (≤ ₹50,000). It may be generated voluntarily.

Example 2

A registered manufacturer in Pune sends machine parts worth ₹20,000 to a job worker in Hyderabad, and separately moves goods worth ₹80,000 within Pune to its own godown, both by road. Examine the e-way bill requirement for each and say who generates the first.

Show the solution

Movement 1 is from one State to another to a job worker. The third proviso to Rule 138(1) applies.
The bill is needed irrespective of value, so the ₹20,000 value does not exempt it.
It can be generated by the principal (manufacturer) or the job worker, if registered.
Movement 2 is goods for a reason other than supply (own godown). Rule 138(1)(ii) covers this.
Value ₹80,000 exceeds ₹50,000, no exemption applies, so a bill is required. The consignor generates it after Part B, or the transporter does so on the details given.

Answer: Both movements need an e-way bill: the job work movement irrespective of value (principal or registered job worker generates), and the godown movement because ₹80,000 exceeds ₹50,000.

Exam tips

In MCQs, hunt for the trap: exact ₹50,000, exempt goods in a mixed invoice, or an inter-State job work case.
Write the rule reference (Rule 138 of the CGST Rules, 2017) and the three types of movement in theory answers.
For exemptions, list at least five items from Rule 138(14) and the Annexure goods, such as currency, jewellery and used household effects.
Show the consignment value computation line by line; it earns step marks even if the final call is wrong.

Practice questions from Tax Invoice - Electronic Way Bill

Electronic Way Bill: Concept and When It Is Required in other exams

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

Electronic Way Bill: Concept and When It Is Required: frequently asked questions

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

Not compulsorily. Rule 138(1) applies where consignment value exceeds ₹50,000. A registered person or transporter may still generate one at their option.

Who should generate the e-way bill: consignor, consignee or transporter?

The registered consignor or the recipient generates it if they transport the goods. If goods are handed to a transporter and no bill exists, the transporter generates it on the details the registered person gives in Part A. A transporter, e-commerce operator or courier agency may also furnish Part A on authorisation.

Does an inward supply from an unregistered person need an e-way bill?

Yes. Rule 138(1)(iii) covers movement due to inward supply from an unregistered person, once the registered recipient's consignment value exceeds ₹50,000. Where an unregistered supplier supplies to a known registered recipient, the movement is treated as caused by the recipient.

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

Rule 138(14) lists them, including goods in the Annexure (such as currency, jewellery and used personal and household effects), alcoholic liquor for human consumption, petroleum crude, high speed diesel, petrol, natural gas and ATF, goods moved by non-motorised conveyance, and transit cargo to or from Nepal or Bhutan. Goods whose movement is no supply under Schedule III are also covered.