A dispatch manager preparing a consignment must determine whether an e-way bill is legally mandatory before the truck leaves the loading dock. While the national rule across state borders is uniform, transport within state boundaries depends on state-specific notifications issued by respective SGST departments. Confusing an intra-state threshold with an inter-state route frequently leads to interception, seizure, and penalty notices under Section 129 of the CGST Act.
The inter-state threshold under Rule 138
Under Rule 138(1) of the CGST Rules, every registered person who causes movement of goods of consignment value exceeding ₹50,000 must generate an e-way bill in Form GST EWB-01 prior to commencement of movement. This requirement applies whether the movement is in relation to a supply, for reasons other than supply (such as branch transfers or job work), or due to inward supply from an unregistered person.
Consignment value has an exact legal definition. Under Explanation 2 to Rule 138(1) of the CGST Rules, consignment value is the value determined under Section 15 of the CGST Act declared in the invoice, bill of supply, or delivery challan. It includes central tax, State tax, integrated tax, and cess charged on the document. It excludes the value of exempt supplies where an invoice covers both taxable and exempt goods.
Certain inter-state movements require an e-way bill irrespective of the consignment value:
- Inter-state job work dispatches: Under the third proviso to Rule 138(1), when goods are sent by a principal in one State to a job worker in another State, an e-way bill is mandatory even if the consignment value is below ₹50,000.
- Handicraft goods by exempt dealers: Under the fourth proviso to Rule 138(1), inter-state transport of handicraft goods by persons exempted from registration requires an e-way bill regardless of value.
When tracking shipments over long distances, remember that validity periods follow strict statutory limits. As detailed in our guide on e-way bill expiry extension under Rule 138(10), an e-way bill is valid for one day up to 200 km for regular cargo, with extension permitted up to eight hours after expiry.
Common mistake: Assuming a state-level ₹1,00,000 threshold applies to inter-state shipments. If a factory in Thane, Maharashtra ships goods worth ₹75,000 to Surat, Gujarat, the consignment is inter-state. The applicable threshold is strictly ₹50,000 under Rule 138(1), not the higher Maharashtra intra-state limit.
State-wise intra-state threshold limits
Clause (d) of Rule 138(14) of the CGST Rules allows state governments to notify exemptions for goods moving within specified areas of their State. By issuing notifications under their respective SGST rules, several states have increased the threshold limit for intra-state movement from ₹50,000 to ₹1,00,000 or provided city-specific relaxations. Taxpayers should also refer to official filing workflows described in the GSTN Form GSTR-3B User Manual to ensure outward turnover matches transport documentation.
The table below summarizes the prevailing intra-state threshold limits across major Indian states and Union Territories for general goods:
| State / Union Territory | Intra-state threshold limit | Conditions and specific exclusions |
|---|---|---|
| Maharashtra | ₹1,00,000 | Standard limit raised to ₹1,00,000; remains ₹50,000 for mandatory notified commodities. |
| Delhi | ₹1,00,000 | Raised to ₹1,00,000 for intra-Delhi movements; excludes tobacco and gutkha. |
| West Bengal | ₹1,00,000 | Raised to ₹1,00,000 for movement within Kolkata and state districts. |
| Bihar | ₹1,00,000 | Applicable for general goods; notified goods remain at ₹50,000. |
| Jharkhand | ₹1,00,000 | Standard intra-state threshold is ₹1,00,000 for non-sensitive goods. |
| Tamil Nadu | ₹1,00,000 | Intra-state threshold raised to ₹1,00,000 for general supplies. |
| Gujarat | ₹50,000 | Standard threshold is ₹50,000, with complete exemption for all goods moving within city limits. |
| Karnataka | ₹50,000 | Standard ₹50,000 threshold applies to intra-state dispatches. |
| Uttar Pradesh | ₹50,000 | Standard threshold is ₹50,000; specific high-tax goods face strict documentation. |
| Haryana | ₹50,000 | Follows central CGST limit of ₹50,000 for intra-state movement. |
| Rajasthan | ₹1,00,000 / ₹2,00,000 | General intra-state limit is ₹1,00,000; raised to ₹2,00,000 for specific dispatches within municipal limits. |
| Kerala | ₹50,000 | Follows standard threshold of ₹50,000 for all intra-state consignments. |
| Madhya Pradesh | ₹1,00,000 | Raised to ₹1,00,000 for intra-state movements of non-taxable and general items. |
| Andhra Pradesh & Telangana | ₹50,000 | Standard ₹50,000 threshold applies across both states. |
Because state notifications undergo periodic revisions, businesses operating across multiple branch offices should regularly verify state GST circulars before adjusting ERP invoice thresholds.
Worked calculation of consignment value
Consider an engineering supplier in Pune dispatching industrial parts to a buyer in Nagpur (an intra-state transaction in Maharashtra, where the general threshold is ₹1,00,000). The tax invoice contains both taxable machinery spares and exempt manual tools.
| Invoice line item | Taxable value | Applicable GST | Total invoice value |
|---|---|---|---|
| Machinery spares (HSN 8483) | ₹80,000 | ₹14,400 (18% CGST + SGST) | ₹94,400 |
| Exempt educational training manual | ₹12,000 | ₹0 (Exempt) | ₹12,000 |
| Freight and handling charges | ₹5,000 | ₹900 (18% CGST + SGST) | ₹5,900 |
| Total invoice amount | ₹97,000 | ₹15,300 | ₹1,12,300 |
Consignment value calculation under Explanation 2 to Rule 138(1):
Taxable parts (₹80,000) + Freight (₹5,000) + Total taxes (₹15,300) = ₹1,00,300.
The exempt manual of ₹12,000 is excluded from the consignment value. However, because the taxable value plus taxes equals ₹1,00,300, it exceeds the Maharashtra intra-state threshold of ₹1,00,000. An e-way bill is mandatory for this movement.
Common pitfalls during intra-state transport
- Ignoring freight charges in consignment value: Taxpayers often compute the threshold on basic taxable goods value alone. If freight charges push the invoice plus taxes over the threshold, moving without an e-way bill invites detention under Section 129.
- Applying intra-state rules to bill-to ship-to transactions: If the buyer is billed in your home state but the goods are shipped across a state line, the physical movement is inter-state. The ₹50,000 threshold applies.
- Moving job work goods without e-way bills: While intra-state job work follows state limits, any inter-state dispatch to or from a job worker requires an e-way bill regardless of amount.
Frequently asked questions
What is the e-way bill limit for inter-state movement of goods?
The statutory threshold for inter-state movement of goods is strictly ₹50,000 under Rule 138(1) of the CGST Rules. No individual state has the legal authority to relax this threshold for inter-state consignments.
Which states have raised the intra-state e-way bill limit to ₹1,00,000?
States such as Maharashtra, West Bengal, Delhi, Bihar, and Jharkhand have issued notifications raising the intra-state threshold to ₹1,00,000 for general goods, subject to specific exclusions like pan masala or tobacco.
Does the ₹50,000 consignment value include GST?
Yes. Explanation 2 to Rule 138(1) provides that consignment value includes central tax, State tax, integrated tax, and cess charged on the invoice or delivery challan, but excludes exempt supplies when billed together with taxable goods.
Reconcile GSTR-2B against your purchase register
Verify your supplier invoices and matched tax credits directly in your browser without data leaks. Your GSTR-2B and purchase register files are read in your browser and never uploaded to any server.
Last checked: 25 October 2026. Sources: CBIC CGST Rule 138 Repository, GSTN Form GSTR-3B User Manual.