Key Takeaways
- E-way bills are mandatory for movement of goods exceeding Rs 50,000 in value for inter-state transport.
- Several states have reduced the intra-state threshold below Rs 50,000.
- GST rates follow a revised four-tier structure under GST 2.0 (effective September 22, 2025): 0%, 5%, 18%, and 40%. The 12% slab and 28% slab were eliminated; 40% now applies to luxury and sin goods.
- Both e-way bill thresholds and GST rates affect logistics costs and pricing decisions for SMBs.
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.
Looking for expert help with e-way bill generation and GST rate compliance services for businesses? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant end-to-end: filings, notices, and advisory, all in one place.
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)
- Movement of goods by a registered person, even if below the threshold, if the goods are sent for job work or through a transporter
Who Generates the E-Way Bill?
- The supplier (consignor) before goods are dispatched
- The recipient (consignee) if the supplier has not generated one
- The transporter, if neither supplier nor recipient has generated it
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. Some states have reduced the threshold to Rs 1,00,000 or even lower for specific goods.
States with Rs 50,000 Threshold (Same as Inter-State)
Most states follow the standard Rs 50,000 threshold for intra-state movement:
- Maharashtra
- Tamil Nadu
- Gujarat
- Rajasthan
- Madhya Pradesh
- Uttar Pradesh
- Bihar
- West Bengal
- Punjab
- Haryana
- And most other states
States with Different Thresholds
Some states have modified their intra-state thresholds:
| State | Intra-State Threshold | Special Conditions |
|---|---|---|
| Kerala | Rs 50,000 | Additional e-way bill for gold above Rs 2,00,000 |
| Karnataka | Rs 50,000 | Mandatory for all goods in specific categories regardless of value |
| Delhi | Rs 1,00,000 | Higher threshold for intra-city movement |
| Telangana | Rs 50,000 | Standard threshold applies |
| Andhra Pradesh | Rs 50,000 | Standard threshold applies |
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:
| Distance | Validity |
|---|---|
| Up to 200 km | 1 day |
| Every additional 200 km | 1 additional day |
| Over-dimensional cargo (up to 20 km) | 1 day |
| Every additional 20 km (over-dimensional) | 1 additional day |
If goods are not delivered within the validity period, you must extend the e-way bill before it expires. Extension can be done on the portal or via SMS.
Common E-Way Bill Mistakes
-
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.
-
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.
-
Not generating for branch transfers. Movement of goods between your own branches in different states requires an e-way bill.
-
Forgetting cess in consignment value. The Rs 50,000 threshold includes GST and cess. Calculate the total invoice value, not just the taxable value.
Looking for expert help with e-way bill compliance and GST rate advisory for Indian SMBs? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant end-to-end: filings, notices, and advisory, all in one place.
Updated GST Rate Structure for FY 2026-27
GST in India follows a multi-tier rate structure. Here is the current rate framework:
Rate Tiers
| GST Rate | Category | Examples |
|---|---|---|
| 0% (Exempt) | Essential goods and services | Fresh fruits, vegetables, milk, education, healthcare |
| 5% | Mass consumption items | Packaged food items, economy travel, small restaurants |
| 18% | Standard services and goods | Most services, IT services, financial services, electronics, mobile phones, processed food, business class travel |
| 40% | Luxury and sin goods | Luxury cars, SUVs, tobacco products, aerated drinks |
Key Rate Changes to Note for FY 2026-27
Several rate adjustments have been implemented following GST Council recommendations:
-
Restaurant services: Restaurants with turnover above Rs 1.5 crore pay 18% GST (with ITC). Those below continue at 5% (without ITC).
-
Real estate: Under-construction property at 5% (without ITC) for regular projects and 1% for affordable housing. Completed/ready-to-move properties are exempt.
-
Insurance services: 18% GST on all insurance premiums. Health insurance rate rationalization has been discussed but not yet implemented.
-
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
| Taxpayer Type | Composition Rate |
|---|---|
| Manufacturers | 1% (0.5% CGST + 0.5% SGST) |
| Traders | 1% (0.5% CGST + 0.5% SGST) |
| Restaurant services | 5% (2.5% CGST + 2.5% SGST) |
| Service providers (turnover up to Rs 50 lakh) | 6% (3% CGST + 3% SGST) |
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 covers e-way bill management, rate advisory, and complete GST filing for your business.
Frequently Asked Questions
Is e-way bill required for services?
No. E-way bills are required only for movement of goods. Services do not require e-way bill generation.
What happens if goods are detained without an e-way bill?
The goods and vehicle can be detained and released only after payment of the applicable tax and a penalty equal to 200% of the tax payable (or Rs 10,000, whichever is higher).
Can I cancel an e-way bill after generation?
Yes, within 24 hours of generation, provided the goods have not been verified in transit by a tax officer. After 24 hours, cancellation is not possible.
How do I find the correct GST rate for my product?
Search for your product's HSN code on the CBIC website (cbic-gst.gov.in) or the GST portal. The HSN code determines the applicable GST rate.
Does the e-way bill threshold include GST?
Yes. The Rs 50,000 threshold is based on consignment value, which includes the taxable value plus GST and cess. Calculate the total invoice value for comparison.
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