Section 68 is the basis of the e-way bill. Goods above a specified value must travel with prescribed documents, and officers may stop a vehicle, check the documents and inspect the goods. Detention and penalty for goods moving without proper documents follow under section 129.
Key points
- Under section 68(1) of the CGST Act, 2017 the person in charge of a conveyance carrying goods above a specified value must carry prescribed documents and devices — the invoice or delivery challan and the e-way bill (Rule 138).
- The e-way bill is generally required for consignments above Rs. 50,000, with exceptions in Rule 138(14) and Annexure to the Rules.
- An officer may intercept a conveyance, verify the documents and inspect the goods (section 68(3)); the inspection is reported in Form EWB-03 (Rules 138B, 138C), and the procedure for detention uses the MOV forms prescribed by Circular 41/15/2018-GST.
- Goods found in transit in contravention may be detained and released on payment of penalty under section 129.
The provisions
68(1)–(3)Documents with goods in transit; inspection
Statutory text
(1) The Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to carry with him such documents and such devices as may be prescribed.
(2) The details of documents required to be carried under sub-section (1) shall be validated in such manner as may be prescribed.
(3) Where any conveyance referred to in sub-section (1) is intercepted by the proper officer at any place, he may require the person in charge of the said conveyance to produce the documents prescribed under the said sub-section and devices for verification, and the said person shall be liable to produce the documents and devices and also allow the inspection of goods.
*Enforced w.e.f. 1st July, 2017.
- Rules 138 to 138E, CGST Rules — e-way bill and inspection
- Circular 64/38/2018-GST — minor discrepancies
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- What is the legal basis of the e-way bill?
- Section 68 of the CGST Act, which lets the Government require documents and devices to accompany goods above a specified value; Rule 138 prescribes the e-way bill.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The e-way bill regime under Rule 138 applies nationally for inter-State movement from 01.04.2018 and intra-State movement from mid-2018 in phases. Part A is filled by the supplier or recipient and Part B by the transporter; validity depends on distance. A summary report of inspection must be recorded within twenty-four hours and a final report within three days (Rule 138C). Minor discrepancies — a spelling error, a wrong digit in the PIN code — do not justify detention (Circular 64/38/2018-GST). For detention, penalty and confiscation see section 129 and section 130.