e-Way Bill checks on goods in transit will be limited to the states where the supplier or the recipient is located, once amendments recommended by the Goods and Services Tax (GST) Council at its 57th meeting on 8 October 2026 are enacted. Officers will also need specific intelligence and approval from a Joint Commissioner or a more senior officer before intercepting a conveyance.
These are recommendations. They take effect only after Sections 68, 129 and 130 of the Central Goods and Services Tax (CGST) Act, 2017 are amended and notified.
How are vehicles intercepted under the current law?
Rule 138B of the CGST Rules, 2017 allows the Commissioner or an empowered officer to authorise a proper officer to intercept any conveyance to verify the e-Way Bill. A truck travelling from Pune to Delhi can therefore be stopped in Gujarat or Rajasthan even though neither party to the sale is registered there.
Minor errors such as a wrong vehicle number or an expired e-Way Bill have led to detentions in transit states, delaying deliveries and tying up working capital. The basics of e-Way Bill generation and validity explain how such errors arise.
What conditions must be met before a vehicle is intercepted?
The Council has recommended two conditions that must both be met before any conveyance carrying goods is stopped:
- The officer must act on specific intelligence about the consignment or the conveyance.
- An officer at or above the rank of Joint Commissioner must authorise the interception.
Random roadside checks will end, including in the supplier’s and recipient’s states. The decision to intercept also moves from field officers to senior officers.
Which states can inspect, detain or seize goods?
Inspection and any further action of detention or seizure will be allowed only where the supplier or the recipient is located or registered in the state where the vehicle is intercepted.
Inter-state movement
For a consignment from Pune to Delhi, only officers of Maharashtra and Delhi can inspect or detain the goods. States on the route will have no interception power if the documents are in order.
Intra-state movement
Where both parties are in the same state, officers of that state alone can act, subject to the same intelligence and authorisation conditions.
When can a transit state still act against a consignment?
The jurisdictional exception applies where no e-Way Bill has been generated, or the person in charge of the conveyance is not carrying the prescribed documents. In these cases, an authorised officer may inspect, detain or seize the goods, subject to the following applicable provisions:
- No e-Way Bill has been generated for the consignment.
- The person in charge of the conveyance is not carrying the prescribed documents.
For example, a truck carrying goods worth ₹5 lakh without an e-Way Bill or an invoice or delivery challan showing the origin and destination may be detained by an authorised officer in a transit state.
What changes for confiscation of goods in transit?
The Council has recommended that Section 130 of the CGST Act will not apply to goods or conveyances in transit. Section 130 permits confiscation where there is intent to evade tax, with a fine in lieu of confiscation of up to the market value of the goods.
Goods in transit will instead be dealt with under Section 129, which provides for detention and release on payment of a penalty. The penalties for e-Way Bill non-compliance under Section 129 remain in force.
What should businesses do until the amendments take effect?
No commencement date has been announced. Businesses should continue these practices in the meantime:
- Generate the e-Way Bill before goods move and update Part B whenever the vehicle changes.
- Carry the tax invoice, bill of supply or delivery challan with every consignment.
- Match the GSTIN, HSN code, value and vehicle number on the e-Way Bill with the invoice.
- Extend e-Way Bill validity before it expires on long routes.
Conclusion
The protection this recommendation offers depends entirely on documentation. A consignment with a valid e-Way Bill and invoice will face scrutiny only in its home states, while one without them remains open to detention anywhere on the route. TallyPrime generates e-Way Bills from sales invoices and keeps transport details linked to each transaction, so documents for goods in transit stay consistent.
