By S&S Co. Advocates & Solicitors · Published 20 September 2026 · Informational content, not legal advice — see our disclaimer
When an E-Way Bill Is Required
Rule 138 of the CGST Rules, 2017 requires an e-way bill for movement of goods where the consignment value exceeds Rs. 50,000 for interstate movement; intrastate thresholds are state-specific and commonly range between Rs. 50,000 and Rs. 1 lakh, so businesses moving goods within a single state should confirm the applicable threshold for that specific state rather than assuming the interstate figure applies.
Generating the E-Way Bill
The e-way bill is generated on the government e-way bill portal by the consignor, consignee, or transporter, and requires invoice or challan details along with the transporter ID and vehicle number in Part B. Transporters can use a Common Enrolment Number to generate e-way bills on behalf of multiple clients under a single transporter ID, streamlining generation for businesses that regularly use third-party transport.
Validity Periods and Extension
Validity is calculated at 1 day per 200 km, or part thereof, of distance for regular cargo, and 1 day per 20 km for over-dimensional cargo, with a maximum extension cap of 360 days from original generation, in force since 1 January 2021. Extension of validity must be requested before expiry, or within 8 hours after expiry in specified circumstances, failing which the e-way bill lapses and goods in transit become non-compliant.
Consequences of Non-Compliance
Goods moving without a valid e-way bill expose the transporter or consignor to detention, seizure and penalty under Section 129 of the CGST Act — a consequence separate from, and in addition to, any tax demand that may separately arise on the underlying transaction. Because the penalty regime is triggered purely by the absence of a valid e-way bill at the point of interception, businesses should build e-way bill generation into their standard dispatch process rather than treating it as an afterthought completed after goods have already left the premises.
Frequently Asked Questions
What is the threshold above which an e-way bill is mandatory?
For interstate movement of goods, an e-way bill is mandatory where the consignment value exceeds Rs. 50,000. Intrastate thresholds are state-specific and commonly range between Rs. 50,000 and Rs. 1 lakh, so the applicable state threshold should be confirmed separately.
How is an e-way bill's validity period calculated?
1 day per 200 km (or part thereof) of distance for regular cargo, and 1 day per 20 km for over-dimensional cargo, with a maximum extension cap of 360 days from original generation.
What happens if goods are moved without a valid e-way bill?
The transporter or consignor faces detention, seizure and penalty under Section 129 of the CGST Act — a consequence separate from, and in addition to, any tax demand that may separately arise on the underlying transaction.
References & Further Reading
This article references the following statutory provisions. Readers should always verify current rules, fees and timelines against the applicable statute and rules as amended, since these are revised from time to time.
- CGST Rules, 2017, Rule 138, as amended, in force since 1 January 2021 for the current validity formula.
- Central Goods and Services Tax Act, 2017, Section 129.