e-Way bill rules: the ₹50,000 line and everything after it

Arthora Guides · Updated August 2026 · 7 min read

An e-way bill is the government's permission slip for goods on the move. The rule sounds simple — consignment worth more than ₹50,000, generate the bill before the truck leaves — but the expensive lessons live in the details: whose job it is, how long the bill stays valid, and what a checkpoint does to goods travelling without one.

When you need one

• Movement of goods worth more than ₹50,000 in a single consignment — by road, rail or air; sale, branch transfer, job-work or sales return alike. It is about movement, not just sales.
• Inter-state and intra-state both — though several states have relaxed intra-state thresholds or exempted short distances; check your own state's notification once and note it.
• Below ₹50,000 it is optional, with two classic exceptions where it is mandatory regardless of value: inter-state job-work, and handicraft goods moved by an unregistered dealer.

The bill is generated on the e-way bill portal (or through your software's API connection) before movement begins. The transporter, the seller or even the buyer can generate it — but if goods are caught without one, the penalty conversation happens with whoever's goods they are.

Part A and Part B

A bill with only Part A filled is a draft, not a licence to move. Part B makes it live, and the validity clock starts then.

How long it stays valid

Validity is distance-based: one day for every 200 km (or part of it) for normal cargo — so a 450 km trip gets three days. Over-dimensional cargo gets one day per 20 km. Two rules save shipments regularly:

• Extension: the transporter can extend validity in the window around expiry (truck broke down, strike, diversion) — extend before it lapses, not after the officer has already stopped you.
• Vehicle change: goods shifted to another truck mid-route need Part B updated, not a new bill.

A bill can be cancelled within 24 hours if the movement never happened; the buyer can reject a bill raised against them within 72 hours.

What a mistake costs

Goods moving without a valid e-way bill can be detained under Section 129 — release means paying a penalty of 200% of the tax on the goods (more if the owner doesn't come forward). For a ₹5 lakh consignment at 18% GST, that is ₹1.8 lakh for a form nobody filled — plus the truck sitting at a checkpoint while your customer waits. No compliance in GST has a worse cost-to-effort ratio than this one.

The common exemptions

• Goods on the exempt list (many unprocessed foods, and other notified items)
• Non-motorised transport (a hand cart or animal cart needs no bill)
• Movement within notified short distances — e.g. up to 50 km between the transporter's hub and the consignee within a state relaxes the Part B requirement
• Goods moving under customs seal or specified defence/government movements