State-Wise E-Way Bill Limits and GST Rate Slabs for 2026

E-way bills and GST rates are two compliance areas that directly affect your business operations every day. Getting either wrong results in goods being detained at checkpoints or incorrect tax collection from customers.

This guide covers the current state-wise e-way bill thresholds and the updated GST rate structure for FY 2026-27.

E-Way Bill: The Basics

An e-way bill (Electronic Way Bill) is a document required for the movement of goods worth more than the applicable threshold. It is generated on the e-way bill portal (ewaybillgst.gov.in) and must accompany the goods during transit.

When Is an E-Way Bill Required?

• Inter-state movement of goods exceeding Rs 50,000 in consignment value
• Intra-state movement of goods exceeding the state-specific threshold (varies by state)
• Inter-state movement of goods from a principal to a job worker, whatever the value (Rule 138(1) proviso)
• Inter-state movement of handicraft goods by a person exempt from registration, whatever the value

Who Generates the E-Way Bill?

• The registered supplier (consignor) or registered recipient (consignee) causing the movement, before goods are dispatched
• The registered recipient, where goods are bought from an unregistered supplier
• The transporter, where goods are handed over to a transporter and the registered person has not generated the e-way bill

State-Wise Intra-State E-Way Bill Thresholds

While the inter-state threshold is uniformly Rs 50,000 across India, individual states have set their own intra-state thresholds. Several states have raised the intra-state limit above Rs 50,000.

States with Rs 50,000 Threshold (Same as Inter-State)

Telangana and many other states follow the standard Rs 50,000 threshold for intra-state movement of taxable goods.

States with Different Thresholds

Some states have notified a higher intra-state threshold, for example:

• Maharashtra: Rs 1,00,000
• Tamil Nadu: Rs 1,00,000
• Delhi: Rs 1,00,000

Some states also apply the e-way bill only to listed goods or only to movement within or outside a city, so read the origin state's notification.

Note: State thresholds are updated periodically. Always verify the current threshold with your state GST department before dispatching goods.

Exemptions from E-Way Bill

Certain goods are exempt from e-way bill requirements regardless of value:

• Goods transported by non-motorized conveyance
• Goods transported from port, airport, or land customs station to an inland container depot
• Transit cargo moving through India to a foreign country
• Goods specified as exempt under the state's GST notification (varies by state)
• LPG for household consumption
• Kerosene under PDS
• Postal department mail bags
• Currency
• Used personal and household effects
• Coral, unworked precious stones

E-Way Bill Validity Period

The validity of an e-way bill depends on the distance of transportation (Rule 138(10)):

If goods are not delivered within the validity period, the e-way bill must be extended on the portal. Rule 138(10) allows the extension within eight hours from the time of expiry.

Common E-Way Bill Mistakes

1. Not generating for goods sent on approval or returnable basis. Even goods sent for approval (sale or return) require an e-way bill if they exceed the threshold.

2. Incorrect vehicle number. If the vehicle changes mid-transit, you must update the e-way bill with the new vehicle number before the goods are moved.

3. Not generating for branch transfers. Movement of goods between your own branches in different states requires an e-way bill.

4. Forgetting cess in consignment value. The Rs 50,000 threshold includes GST and cess. Calculate the total invoice value, not just the taxable value.

Updated GST Rate Structure for FY 2026-27

Tax Rate Chart

GST Rate Slabs Under GST 2.0 (Effective September 22, 2025)

Four-tier structure replacing the earlier five-slab model : 12% and 28% slabs eliminated

Exempt / 0%

Fresh fruits, vegetables, milk, education, healthcare

0%

Mass Consumption

Packaged food, economy travel, small restaurants

5%

Standard Rate

Most services, IT, electronics, general insurance

18%

Luxury & Sin Goods

Luxury cars, SUVs, tobacco, aerated drinks, online gaming bets

40%

Source: GST Council : GST 2.0 rate revision, effective September 22, 2025

GST in India follows a multi-tier rate structure. Here is the current rate framework:

Key Rate Changes to Note for FY 2026-27

Several rate adjustments have been implemented following GST Council recommendations:

1. Restaurant services: Standalone restaurants pay 5% GST without ITC, whatever their turnover. The 18% rate with ITC applies to restaurant services in hotels where any room is priced above Rs 7,500 per night.

2. Real estate: Under-construction property at 5% (without ITC) for regular projects and 1% for affordable housing. Completed/ready-to-move properties are exempt.

3. Insurance services: Individual life insurance and individual health insurance policies (including reinsurance of them) are exempt from GST from September 22, 2025. General insurance such as motor and fire continues at 18%.

4. Online gaming: 40% GST on full face value of bets placed, applicable to all online games of chance (rate revised under GST 2.0, effective September 22, 2025).

Reverse Charge Mechanism (RCM) Rates

Certain supplies attract GST under reverse charge, where the recipient pays the tax instead of the supplier:

• Legal services from advocates: 18% under RCM
• Sponsorship services: 18% under RCM
• Services by goods transport agencies: 5% under RCM (or 18% with ITC under forward charge)
• Rent of motor vehicle: 5% under RCM from non-body corporate
• Security services from individual/proprietor: 18% under RCM

Composition Scheme Rates

Total rate (CGST plus SGST) under Rule 7 of the CGST Rules and Notification 2/2019-CTR:

How GST Rates Affect Your Pricing

For SMBs, applying the correct GST rate is critical:

• Charging a higher rate than applicable means overcharging customers and creating refund obligations
• Charging a lower rate means shortfall in tax collection and personal liability
• Incorrect rate application triggers demand notices during GST audit

When in doubt about the applicable rate for a specific product or service, check the HSN/SAC code in the GST rate schedule or consult your tax advisor.

Let Tax Garden Handle Your GST Compliance

E-way bill generation, correct rate application, and monthly GST filing require consistent attention. Tax Garden's Compliance Standard plan handles e-way bill generation, correct GST rate application, and complete GSTR-1 and GSTR-3B filing for your business.

Frequently Asked Questions

Does the Rs 50,000 e-way bill limit include GST?

Yes. Consignment value for the e-way bill test is the invoice value including CGST, SGST, IGST and cess. The value of exempt goods billed on the same invoice is left out. So a taxable value of Rs 44,000 at 18% GST (Rs 51,920 in total) needs an e-way bill for an inter-state movement.

What is the intra-state e-way bill limit in Telangana?

Telangana follows the standard Rs 50,000 consignment value limit for movement of goods within the state. Several other states, such as Maharashtra, Tamil Nadu and Delhi, use a higher intra-state limit of Rs 1 lakh. Always check the state notification of the origin state before dispatch, since limits are revised from time to time.

Do I need an e-way bill if several invoices in one truck are each below Rs 50,000?

No. The threshold is tested per invoice or consignment, not on the total load in the vehicle. If each invoice is below the limit, no e-way bill is needed even if the truck carries more than Rs 50,000 in total. A transporter may still choose to generate a consolidated e-way bill if individual e-way bills exist.

Is an e-way bill needed for goods sent to a job worker below Rs 50,000?

For inter-state movement of goods from a principal to a job worker, an e-way bill is mandatory whatever the value, and the principal or the registered job worker must generate it. The same value-independent rule applies to inter-state movement of handicraft goods by a person exempt from registration.

When can I skip Part B of the e-way bill?

Vehicle details in Part B are not needed when goods move within the same state for a distance of up to 50 km between the consignor's place of business and the transporter's place, or from the transporter to the consignee. Part A must still be generated, and Part B has to be filled before the onward long-haul movement.