Latest Update:
GSTN recently issued an advisory through Notification dated 6th February 2025 clarifying exemption on goods covered under Chapter 71 viz., Natural or cultured pearls and precious or semi-precious stones; jewellery, goldsmiths’ and silversmiths’ articles, and precious metals and metals clad with precious metal, except those classified under HSN 7117(Imitation Jewellery).
E-way bill generation is mandatory for movement of goods across state borders, where the value of goods exceed ₹50,000. While this value- ₹50,000 is generally the criterion for e-way bill generation, there are cases when it is not applicable. This either happens when certain goods are subject to an e-way bill exemption, or the value of goods does not determine the requirement for an e-way bill.
Here, we shall discuss all such cases of e-way bill exemption further clarifying when is e-way bill not required for supply of specific goods.
Different Cases of Mandatory E-Way Bill Generation
Following are the cases when e-way bill generation is mandatory for suppliers or recipients:
- There is a movement of goods across state borders whose value exceed ₹50,000. Once generated, e-way bill validity will depend on the distance of the route.
- Someone registered as a consignor or recipient is transporting goods through someone else’s vehicle
- Supply of goods involve a courier agency or an e-commerce operator
- An unregistered person is supplying goods worth ₹50,000 or more to a registered person
- Goods are being transported across state borders by a principal to a job worker or vice versa, irrespective of the value of goods
- An unregistered person under clauses (i) and (ii) of section 24 transports handicraft goods (as explained in notification No.32/2017-Central Tax dated 15.09.2017) across state borders
Goods Exempt from E-Way Bill Generation
E-way bill exemption is applicable in the following cases:
1. Goods other than de-oiled cake are transported as specified in Notification No 2/2017- Central tax (Rate).
2. Goods transported are alcoholic liquor for human consumption, high speed diesel, natural gas, petroleum crude, motor spirit, or aviation turbine fuel.
3. Transported goods are exempt from tax as per Notification No 7/2017-Central Tax(Rate) and Notification No 26/2017 Central Tax(Rate)
4. Transportation is for empty cargos.
5. Transportation is for empty cylinders for liquified petroleum gas for reasons other than supply
6. Goods that are enlisted for e-way bill exemption as per Rule 138 (14):
| S. NO. | Description of Goods |
|---|---|
| 1. | Liquefied petroleum gas for supply to household and Non-domestic exempted category (NDEC) customers |
| 2. | Kerosene oil sold under PDS |
| 3. | Postal baggage transported by Department of Posts |
| 4. | Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal (Chapter 71) |
| 5. | Jewellery, goldsmiths’ and silversmiths’ wares and other articles (Chapter 71) [except Imitation Jewellery (7117)] |
| 6. | Currency |
| 7. | Used personal and household effects |
| 8. | Coral, unworked (0508) and worked coral (9601) |
7. As recently prescribed under Notification dated 6th February 2025, goods covered under Chapter 71 viz., Natural or cultured pearls and precious or semi-precious stones; Jewellery, goldsmiths’, and silversmiths’ articles, and precious metals and metals clad with precious metal, except those classified under HSN 7117(Imitation Jewellery)
Transactions Exempt from E-Way Bill Generation
Certain transactions are exempt from e-way bill generation and are as follows:
1- Transportation of goods is through a non-motorised conveyance
2- Goods are transported from the customs port, aircargo complex, land customs station, or airport to a container freight station or an inland container depot or vice versa
3- Transportation within areas as notified under clause (d) of sub-rule (14) of rule 138 of the Goods and Services Tax Rules.
4- Classification of supply as “no supply” as per Schedule III
5- Movement of goods by Ministry of Defence or the Central/State Government, or a local authority for goods transportation by rail
6- Transportation is within 20 kms from the consignor’s place of business to a weighbridge for weighment or vice versa. One needs a delivery challan in such cases.
7- Transportation is taking place from/to Bhutan or Nepal.
Conclusion
There are hence multiple instances where e-way bill exemption is applicable, in the case of certain goods and certain transactions. It is also notable that there are only some situations where threshold value of ₹50,000 is not applicable and e-way bill generation is necessary irrespective of the goods value. This is when a transportation involves handicraft goods or principal/ job worker in one state is transporting goods to job worker/ principal in other state.
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