The e-way bill is a document required under GST laws for transporting goods. It is generated online through the “e-way bill portal” and includes important details like:
- Source of goods
- Destination
- Value
Usually, tax authorities verify this document during transit to ensure the goods are moved legally and taxes are properly accounted for. According to Rule 138 of the CGST Rules 2017, an e-way bill must be generated for the movement of goods worth over Rs. 50,000. This rule applies whether goods are moved by road, rail, air, or sea.
However, there are certain cases when an e-way bill is not required or generating it is optional. Such exemptions reduce paperwork and compliance burdens. In this article, let’s check out these exemptions.
Goods exempted from e-way bill rules
Under the GST rules, certain goods are exempt from generating an e-way bill. These exemptions apply to specific items so that their transportation becomes simpler. Below are some common exempt goods:
- Essential commodities
Items like LPG for households, kerosene sold under PDS, and postal baggage transported by the Department of Posts do not need an e-way bill.
- Precious items
Goods such as natural or cultured pearls, precious metals, jewellery, and unworked coral are exempt.
- Personal items and currency
Used household goods, personal effects, and currency in transit are exempt.
- Special categories
Alcoholic liquor, petroleum products, and aviation turbine fuel do not require e-way bills. These goods are taxed under different laws.
- Non-supply goods
Items that do not qualify as a “supply” under Schedule III of the GST Act (like services by MPs or employees) are exempt.
- Basic goods and food items
Goods like fresh milk, curd, vegetables, unprocessed tea, fruits, meat, and unbranded cereals are exempt. Educational materials like books and maps also fall into this category.
- Special notifications
Certain goods listed under specific government notifications, like heavy water and nuclear fuels, are exempt from the requirement of generating an e-way bill.
Transactions where an e-way bill is not required
In addition to certain exempt goods, there are specific cases where generating an e-way bill is not mandatory under GST rules. Below are certain key scenarios:
- Low-value goods
If the transported goods are worth less than Rs. 50,000, an e-way Bill is optional. This exemption reduces the compliance burden of sellers active on online marketplaces and physical locations selling low-value goods.
However, an exception also applies to this. An e-way bill will be required when transporting handicraft items or interstate job work (regardless of value).
- Non-motorised transport
Goods moved using non-motorised vehicles like handcarts or horse carts do not require an e-way bill.
- Customs-related movement
Goods transported under customs supervision are exempt. Some specific cases are:
| Customs clearance | Transportation governed by a customs bond |
| Goods transported from ports or airports to inland container depots (ICD) or container freight stations (CFS) for customs clearance are exempt. | Goods transported from ICDs/ CFSs to customs locations (like ports or airports) under customs bonds or seals are exempt. |
- Movement involving notified and specific areas
Goods transported within a government-notified area or for transit to/ from Nepal or Bhutan are exempt.
- Temporary movements
If goods are moved to a weighbridge (within 20 km) and back to the business location using a Delivery Challan (DC), no e-way bill is needed.
- Government and defence movements
An e-way bill is not required when goods are transported via rail by government or local authorities, or to/ from the Ministry of Defence.
Conclusion
E-way bill exemptions simplify the transportation of goods. They reduce paperwork and compliance. Some specific goods which do not require an e-way bill are;
- Essential commodities (LPG, kerosene)
- Personal items (used household goods, currency)
- Precious goods (jewellery, unworked corals)
- Basic items (milk, fruits, and vegetables)
Additionally, certain movements, such as non-motorised transport or goods under customs supervision, are exempt. Low-value goods (below Rs. 50,000) also qualify for exemptions unless they involve handicrafts or interstate job work.
Moreover, government and defence-related movements, as well as goods transported in notified areas or for temporary purposes like weighing, further expand the list of exemptions.
These rules reduce additional compliance burdens and help all the stakeholders involved in the process, such as transporters, businesses, and NBFC.
