E-Way Bill Rules for MSMEs: the ₹50,000 Limit, Part A and B, Validity, Exemptions and Penalties

You need an e-way bill before moving goods whose consignment value exceeds ₹50,000, counting GST, whether the movement is a sale, a stock transfer or a purchase from an unregistered person. It is generated on the e-way bill portal in two parts: Part A with the invoice details and Part B with the vehicle, and it is valid for one day for every 200 km. Goods moved without one can be detained and released only on payment of a penalty.

Sources checked: 20 October 2026

Facts checked on 20 October 2026 against rules 138, 138A to 138E of the CGST Rules 2017 and sections 68 and 129 of the CGST Act on the CBIC tax information portal, and GSTN advisories on gst.gov.in.

Key facts

Point	Rule	Source
When needed	Consignment value exceeding ₹50,000, including taxes	Rule 138(1)
Below ₹50,000 regardless	Inter-State goods to a job worker; inter-State handicraft goods by exempt sellers	Rule 138(1), provisos
Two parts	Part A: invoice, parties, value; Part B: vehicle or transport document	Form EWB-01
Validity	1 day per 200 km (1 day per 20 km for over-dimensional cargo or a ship leg)	Rule 138(10)
Extension	Within 8 hours of expiry, by updating Part B	Rule 138(10), provisos
Cancellation	Within 24 hours, unless verified in transit	Rule 138(9)
Part A without Part B	Usable for 15 days to add Part B	Rule 138(9), proviso
Other party's response	Accept or reject within 72 hours or by delivery, whichever is earlier, else deemed accepted	Rule 138(11), (12)
Old documents	Invoice older than 180 days cannot be used (from 1 January 2025)	GSTN advisory

When is an e-way bill required?

Every registered person who causes movement of goods of consignment value exceeding ₹50,000 must furnish Part A of Form EWB-01 before the movement starts (rule 138(1)). This covers three situations:

• a supply, such as a sale;
• a movement for reasons other than supply, such as a branch transfer, goods sent for job work or a return; and
• an inward supply from an unregistered person.

The consignment value is the value under section 15 in the invoice, bill of supply or delivery challan, including central tax, State tax, integrated tax and cess, and excluding exempt goods billed on the same invoice.

Two movements need an e-way bill whatever the value: goods sent by a principal in one State to a job worker in another, and inter-State movement of handicraft goods by a person exempt from registration. You may also generate one voluntarily below ₹50,000.

Who generates Part A and Part B?

The supplier or the recipient who causes the movement fills Part A (invoice number and date, the parties, value, HSN and reason). A transporter, an e-commerce operator or a courier agency can fill it on the consignor's authorisation.

Part B carries the vehicle number, or the railway, air or ship document. Where you move goods yourself by road, you complete Part B. Where you hand the goods to a transporter, you give the transporter's ID and the transporter completes Part B. An e-way bill is not valid for road movement until Part B is filled, with two exceptions: movements of up to 50 km within the State between your place of business and the transporter's, or from the transporter's place to the consignee's.

If goods change vehicles midway, Part B must be updated before the onward journey. A transporter carrying several consignments can generate a consolidated e-way bill in Form EWB-02.

Unregistered persons: since 11 February 2025, an unregistered dealer can enrol on the e-way bill portal in Form ENR-03 and use the enrolment ID in place of a GSTIN.

How long is an e-way bill valid?

Validity runs from the time of generation, and each day ends at midnight of the day after generation (rule 138(10)):

Distance	Normal cargo	Over-dimensional cargo or multimodal with a ship leg
First stretch	1 day for up to 200 km	1 day for up to 20 km
Each further stretch or part of it	1 more day per 200 km	1 more day per 20 km

So a 450 km road trip with an e-way bill generated at 4 pm on Monday gets three days: the bill is valid until midnight at the end of Thursday. If the goods are delayed by something exceptional, such as a breakdown or trans-shipment, the transporter can extend the validity within 8 hours of expiry after updating Part B.

Since 1 January 2025, the portal limits extensions to 360 days from the original generation date, and refuses an e-way bill for a base document dated more than 180 days earlier (GSTN advisory of 17 December 2024).

Which goods and movements are exempt?

Rule 138(14) lists the cases where no e-way bill is needed, including:

• goods in the Annexure to rule 138: LPG for households and exempt non-domestic customers, PDS kerosene, postal baggage carried by the Department of Posts, precious stones and metals, jewellery (but not imitation jewellery), currency, used personal and household effects, and coral;
• goods moved by a non-motorised conveyance, such as a hand cart;
• goods moved from a customs port, airport or land customs station to an inland container depot or container freight station for customs clearance, or under customs bond, supervision or seal;
• alcoholic liquor for human consumption, petroleum crude, high speed diesel, petrol, natural gas and aviation turbine fuel;
• goods exempt from tax under the central tax rate notifications cited in the rule, and goods in the schedule to Notification 2/2017-Central Tax (Rate) other than de-oiled cake;
• movements treated as neither supply of goods nor services under Schedule III;
• transit cargo to or from Nepal or Bhutan, defence movements, government consignments by rail, empty cargo containers and empty LPG cylinders moved other than for supply;
• goods taken up to 20 km to a weighbridge and back, with a delivery challan.

Movement within your State: rule 138(14)(d) lets each State notify areas where no e-way bill is needed, and States make their own rules under their State GST law. We have not set out State-specific limits for Haryana, Punjab, Rajasthan or Uttar Pradesh here; check your State tax department's current notification before relying on any intra-State relaxation.

What must the driver carry?

The person in charge of the vehicle must carry the invoice, bill of supply or delivery challan, and the e-way bill in paper form or its number electronically (rule 138A). For an e-invoice, the QR code with the IRN can be shown in place of a paper invoice; see our e-invoicing guide. For imported goods, the bill of entry also travels with the goods.

Can my e-way bill be blocked?

Yes. Rule 138E stops anyone from generating Part A for your outward movements if you are:

• a composition dealer who has not filed CMP-08 for two consecutive quarters;
• a regular taxpayer who has not filed returns for two tax periods in a row, or GSTR-1 for any two months or quarters; or
• a person whose registration is suspended.

The Commissioner can allow generation on an application in Form EWB-05. The simplest protection is to file on time; see our GST return due dates.

What happens if goods are stopped without a valid e-way bill?

Officers can intercept a vehicle and verify the e-way bill (rule 138B). A summary report is recorded within 24 hours of inspection and the final report within three days (rule 138C). If the vehicle is held for more than 30 minutes, the transporter can report it on the portal in Form EWB-04 (rule 138D).

Where goods move in breach of the Act or rules, section 129 allows the goods, the vehicle and the documents to be detained or seized. They are released on payment of a penalty linked to the tax on the goods (higher where the owner does not come forward), or on furnishing security for it. The officer must issue a notice within seven days and pass an order within seven days of serving it, after a hearing. If the penalty is not paid within 15 days of the order, the goods or vehicle can be sold to recover it. Our guide to GST notices covers how to respond to the related forms.

The 57th GST Council meeting on 8 October 2026 recommended that vehicles be intercepted only on specific intelligence with a Joint Commissioner's authorisation, and not in transit States. These are recommendations; the current rules apply until the law is amended. Separately, enhancements to the e-way bill system announced for 1 August 2026 were put on hold by GSTN on 29 July 2026.

Steps to generate an e-way bill

1. Issue the invoice, bill of supply or delivery challan.
2. Log in to the e-way bill portal and fill Part A, or let your software or transporter do it.
3. Fill Part B with the vehicle number, or assign the bill to the transporter.
4. Give the driver the documents and the e-way bill number.
5. Update Part B if the vehicle changes, and extend the bill within 8 hours of expiry if delayed.
6. Check e-way bills that other parties raise in your name and accept or reject them within 72 hours, or before delivery if that is earlier.

Common mistakes

• Leaving GST out when checking the ₹50,000 limit.
• Forgetting job-work and stock transfers, which are movements "for reasons other than supply".
• No Part B on a road movement beyond the 50 km exception.
• Letting the bill expire without extending it within the 8-hour window.
• Using an invoice older than 180 days for a delayed dispatch.
• Missing returns, which blocks e-way bills for every outward dispatch.

What to do now

Make e-way bill generation part of your dispatch checklist, and file returns on time so the portal does not block you. If goods have been detained or you are unsure whether a movement is exempt, ask our expert team through our GST services or book a consultation.