Background:
Rule 138(2A) of the CGST Rules, 2017 provides that where goods are transported by railways, air or vessel, the e-way bill is to be generated by the registered supplier or recipient by furnishing Part B of FORM GST EWB-01 either before or after commencement of movement, and the proviso bars the railways from delivering goods unless the e-way bill is produced at the time of delivery. Metro rail corporations in several cities have started offering parcel/cargo logistics services using spare capacity on metro networks, particularly for intra-city e-commerce and courier consignments. Since “railways” is not defined in the GST Rules and metro railways are governed by a separate statute (the Metro Railways (Operation and Maintenance) Act, 2002), there was ambiguity as to whether such movements fell within Rule 138(2A) and whether the metro operator was bound by the delivery condition.
The 57th GST Council (08.10.2026) recommended measures for smoother movement of goods and rationalisation of e-way bill provisions; the extension of Rule 138(2A) to metro railway gives clarity for this emerging mode of transport.
What the Notification provides:
Now, the CBIC vide Notification No. 05/2026-Central Tax dated 26.10.2026 has amended Rule 138(2A) as under:
- in sub-rule (2A), after the words “by railways”, the words “or metro railway” have been inserted, so that where goods are transported by metro railway, the e-way bill shall be generated by the registered supplier or recipient, who may furnish Part B of FORM GST EWB-01 before or after commencement of movement; and
- in the proviso, the words “transported by railways, the railways shall” have been substituted by “transported by railways or metro railway, the railways or metro railway shall”, so that the metro railway shall not deliver the goods unless the e-way bill is produced at the time of delivery.
Effective date:
The amendment is effective from 1st November, 2026. Businesses using metro cargo/parcel services for consignments exceeding the threshold value should ensure that e-way bills are generated with the metro railway as the mode of transport, and metro operators will need to verify e-way bills before delivery.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/10/CBIC-NN-05-2026–Central-Tax.pdf
