Eway bills are mandatory for goods which are crossing state borders and are valued at ₹50,000 or more. Issuing Eway bills have been made mandatory so that they can be tracked while in-transit and the relevant officials can identify possible tax evasion attempts. However, there are some goods which can be moved from one Indian state to another without an Eway bill. This article will tell you everything you need to know about goods which do not need an Eway bill to cross state borders.
Goods Exempted From Eway Bill
As per the provisions under the rule 138 (14) of the Central Goods and Services Tax Act, 2017, the following goods have an e-way bill exemption:
1. No Eway Bill is required for the following goods:
- Liquefied petroleum gas for household supply and customers falling under the non domestic exempted category (NDEC);
Kerosene oil which is sold under Public Distribution Systems (PDS);
Postal baggage that is transported by Department of Posts;
Natural/cultured pearls and precious/semi-precious stones/precious metals/ metals clad with precious metal (Chapter 71)
Jewellery, goldsmiths and silversmiths wares and other similar articles (Chapter 71);
Currency;
Used personal and household effects;
Worked coral (9601) and coral, unworked (0508)
2. Goods being transported by a non-motorised conveyance.
3. No Eway bill is required if the following goods are being transported:
Alcoholic liquor for human consumption
Petroleum crude
High-speed diesel
Motor spirit (petrol)
Natural gas
Aviation turbine fuel
Goods which are not counted as supply as per provisions contained in Schedule III of the Act.
4. When goods which are specified in the schedule appended to notification no. 2/2017-Central Tax (Rate) that is dated June 28, 2017, are being transported, no Eway bill is required.
Specific Transactions That are Exempted From Eway Bill Generation
As per the provisions under Rule 138(14) of the Central Goods and Services Tax Act, 2017, no Eway bill is required under the following circumstances:
In case goods are being transported from customs ports, air cargo, airport complexes and land customs stations to an inland container depot (ICD) or a container freight station for customs clearance purposes.
When the Central Government, State Government or any other local authority acting as a consignor transports the goods by rail, there is no requirement of an Eway bill.
When the ministry of defence is a consignor/consignee, no E-way bill is required.
When empty cargo containers are being moved, no Eway bill is required.
If goods are being transported for being weighed and the distance is not more than 20 kms from the place of the business of the consignor to the weighbridge, or vice versa, no Eway bill is required. The goods, however, must be accompanied by a delivery challan.
Documents to be Carried in Case Eway Bill is not Required
If an Eway Bill is not required for the goods which are being transported across state borders, the carrier must be in possession of the tax invoice. Otherwise, they must hold a valid document as per the provisions made under the GST laws.
Section: Eway Bill Articles
