E-way bill and e-invoice rules under GST: limits, validity and recent changes

✓Checked against official sources · verified 30 October 2026

E-way bill: when is it required?

Under rule 138 of the CGST Rules, a registered person must generate an e-way bill before moving goods whose consignment value is more than ₹50,000. This applies whether the movement is for a supply (a sale), for some other reason (such as sending stock to a branch or goods for repair), or because of an inward supply from an unregistered person. Consignment value includes GST but leaves out exempt goods and freight shown separately.

• For goods sent to a job worker in another state, and for some handicraft goods, an e-way bill is needed even below ₹50,000.
• Below ₹50,000 an e-way bill is optional. Unregistered persons and transporters can also generate one.
• Some states set a different limit for movement within the state. If you move goods only within your state, check that state's notification.

Who generates it — Part A and Part B

• Part A holds the invoice or challan details: GSTINs of supplier and recipient, place of delivery, document number and date, value, HSN code and reason for transport. It is filled in by the supplier or recipient. A transporter can fill it if the supplier authorises them.
• Part B holds the vehicle number (or the transport document number for rail, air or ship). If you move goods in your own or a hired vehicle, you fill Part B. If you hand the goods to a transporter, the transporter fills it.
• If the goods travel up to 50 km within the state from your place of business to the transporter's place of business (or from the transporter to the consignee), the vehicle details in Part B need not be filled in for that leg.
• When goods are shifted to a different vehicle during transit, Part B must be updated. A transporter carrying several consignments can generate a consolidated e-way bill.

Within 24 hours of generation, an e-way bill can be cancelled if the goods were not moved or not moved as described. It cannot be cancelled once it has been verified in transit. A registered recipient can accept or reject it. If the recipient does not respond within 72 hours, it is treated as accepted.

Validity by distance

Example: 450 km of normal cargo means 3 days (200 + 200 + 50). If goods cannot reach in time for genuine reasons (breakdown, natural calamity, law and order), the validity can be extended on the portal close to the time it expires, within the 360-day overall cap described below.

Common situations where no e-way bill is needed

• Goods carried by a non-motorised conveyance (for example a handcart)
• Goods that are exempt or nil-rated under the GST exemption notification, and goods listed in the annexure to rule 138
• Alcoholic liquor for human consumption and the petroleum products still outside GST (petroleum crude, high speed diesel, petrol, natural gas, aviation turbine fuel)
• Empty cargo containers, and goods moved under customs seal or in transit to or from Nepal or Bhutan
• Goods moved from a port, airport or land customs station to an inland container depot or container freight station for customs clearance

Penalties

If goods are found moving without a valid e-way bill or other required document, the goods and the vehicle can be detained under section 129 of the CGST Act. They are released on payment of a penalty:

• Owner comes forward: 200% of the tax payable on the goods. For exempt goods, 2% of the value or ₹25,000, whichever is less.
• Owner does not come forward: the higher of 50% of the value of the goods or 200% of the tax payable. For exempt goods, 5% of the value or ₹25,000, whichever is less.

An appeal against a detention order requires a deposit of 25% of the penalty. If the penalty is not paid within 15 days, the goods can be sold.

E-invoice: who must issue it?

• Threshold: registered persons whose aggregate annual turnover (AATO) has crossed ₹5 crore in any financial year since 2017-18. This applies from 1 August 2023 (Notification 10/2023-Central Tax).
• Documents: B2B tax invoices (including exports), credit notes and debit notes. B2C invoices, bills of supply and delivery challans are not reported.
• Process: you upload the invoice data to an IRP, which returns a digitally signed invoice with an IRN (Invoice Reference Number) and a QR code. The QR code must be printed on the invoice. An invoice issued without an IRN is not a valid tax invoice, which puts your buyer's input tax credit at risk. Part A of the e-way bill can be filled automatically from the IRN.
• Exempt entities: SEZ units (but not SEZ developers), insurers, banking companies and financial institutions including NBFCs, goods transport agencies, passenger transport service providers, cinemas (for admission tickets), and government departments and local authorities.
• Cancellation: an IRN can be cancelled on the IRP only within 24 hours, and only in full. After that, correct the invoice with a credit note.

What changed in 2025 and 2026

• 30-day reporting limit (from 1 April 2025): taxpayers with AATO of ₹10 crore or more cannot report an invoice, credit note or debit note on the IRP once it is more than 30 days old. Earlier this applied only at ₹100 crore and above.
• 180-day document limit (from 1 January 2025): an e-way bill can be generated only for a base document (invoice, bill or challan) dated within the last 180 days.
• 360-day extension cap (from 1 January 2025): an e-way bill can be extended only up to 360 days from the date it was first generated.
• Multi-factor authentication: MFA became mandatory for e-way bill and e-invoice portal users in phases — AATO above ₹20 crore from 1 January 2025, above ₹5 crore from 1 February 2025, and all users from 1 April 2025.
• Proposed e-way bill changes on hold: a mandatory "Ship-To" GSTIN field and a facility to close e-way bills were planned for 1 August 2026. On 29 July 2026, GSTN put them on hold until further notice.
• 57th GST Council (8 October 2026): the Council recommended limiting interception of vehicles (on specific intelligence, and generally only in the state of the supplier or recipient), no confiscation of goods in transit, and extending e-invoicing to reverse-charge purchases from unregistered persons and to import of services for AATO of ₹5 crore and above. These are only recommendations and take effect only once the law, notifications or circulars are issued.

Frequently asked questions

How TaxEase can help

We set up e-way bill and e-invoice workflows, check whether you have crossed the thresholds, and reconcile your e-invoices with GSTR-1. See our GST return filing service or all services, keep an eye on the due dates, or send us your query.