Overview: The GST Council is scheduled to meet on 7 October 2026 and may consider proposals to bring metro rail within the e-way bill framework and clarify the GST treatment of permanent transfers of Intellectual Property Rights (IPR). The proposals have been recommended by the Council’s Law Committee. If approved and notified, the changes could affect businesses involved in logistics, technology, intellectual property and cross-border transactions.
The proposed changes are relevant to businesses moving goods through urban transport networks and those dealing with intellectual property. However, these are proposals for consideration and not yet changes to the GST rules. Businesses should therefore continue following the existing framework until any amendments are approved and notified.
Changes to E-Way Bills and IPR under consideration
The GST Council meeting on 7 October may consider a proposal to include metro rail as a mode of transport for e-way bill purposes.
Under Rule 138 of the CGST Rules, an e-way bill is generally required for movement of goods where the consignment value exceeds ₹50,000, subject to specified exceptions. The rules already provide for movement of goods by road, railways, air and vessels. Metro rail, however, is not separately identified in the framework.
The proposed change is linked to the use of metro networks for commercial movement of goods. India’s operational metro network has now reached about 1,170 km across 26 cities, according to figures cited by Union Housing and Urban Affairs Minister Manohar Lal in September 2026.
The Council may also consider a proposal on the GST treatment of permanent transfers of IPR.
The existing GST rate framework refers to both temporary and permanent transfers of IPR under Heading 9973. However, the classification of a permanent transfer can still raise a question over whether the transaction should be treated as a supply of goods or services.
The Law Committee has reportedly recommended treating permanent IPR transfers as supplies of services, which could provide greater clarity on their GST classification.
This could also matter in cross-border transactions involving patents, trademarks, copyrights, software and other intellectual property. The GST treatment would still depend on the nature of the transaction and the applicable place-of-supply and other rules.
What Businesses Should Know
Until the GST Council takes a decision and the necessary legal changes are notified, businesses should continue to follow the existing GST framework.
| Area | Current Position / Proposed Change |
|---|---|
| E-way bill | Rule 138 generally applies to movement of goods where the consignment value exceeds ₹50,000, subject to specified exceptions. |
| Metro rail | A proposal is under consideration to expressly include metro rail as a mode of transport for e-way bill purposes. |
| Permanent IPR transfer | GST rates cover temporary and permanent IPR transfers, but the CGST Act specifically treats temporary transfers as services, leaving classification of permanent transfers open to clarification. |
| IPR proposal | The Law Committee has recommended treating permanent IPR transfers as supplies of services. |
For businesses moving goods, proper invoice, transport and e-way bill documentation remains important. Businesses considering metro rail for commercial cargo movement should also check the final rules if the proposal is approved.
What Businesses Should Do Now
- Continue following the existing Rule 138 e-way bill requirements until any amendment is formally notified.
- Do not treat metro rail as a newly covered mode based only on the proposed change.
- Review IPR agreements to identify whether the rights are being licensed, temporarily transferred or permanently transferred.
- Clearly record the consideration, rights being transferred and other relevant transaction details.
- Review affected transactions if the Council approves the proposal and the corresponding legal changes are subsequently notified.
Setindiabiz Support
GST changes can affect how businesses handle invoices, e-way bills and transaction records, while IPR transfers require the right GST treatment and documentation. Setindiabiz experts review your transaction, identify the applicable GST and compliance requirements, and help you put the necessary documentation and filings in place. If your business is dealing with GST, e-way bills or an IPR transaction, talk to the Setindiabiz team for transaction-specific compliance support.
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FAQs
Will an e-way bill be required for goods transported through metro rail?
The change is still at the proposal stage. The GST Council may consider including metro rail as a mode of goods transport for e-way bill purposes at its 7 October 2026 meeting. Until the notification following a final decision, businesses should continue following the existing e-way bill rules
What is the current e-way bill threshold under Rule 138?
Rule 138 generally requires an e-way bill for movement of goods where the consignment value exceeds ₹50,000, subject to specified exceptions. Different requirements can also apply to intra-State movement based on state notifications.
What change is proposed for permanent transfer of IPR under GST?
The GST Council may consider a proposal to treat permanent transfers of IPR as supplies of services. he proposal is intended to provide greater clarity on their classification. The existing GST rate framework already refers to temporary or permanent transfer of IPR, but permanent transfers can raise a question about whether the transaction is a supply of goods or services.
Why is the proposed IPR change relevant to cross-border transactions?
A clearer classification could make the GST position easier to determine in cross-border IPR transactions. Where a transaction qualifies as an import of services, the relevant place-of-supply and other GST provisions would still need to be considered.
The proposed changes on metro rail e-way bills and permanent IPR transfers could address specific issues faced by businesses using metro networks and dealing with intellectual property.
In This Article
Author Bio
Setindiabiz Editorial Team is a multidisciplinary collective of Chartered Accountants, Company Secretaries, and Advocates offering authoritative insights on India’s regulatory and business landscape. With decades of experience in compliance, taxation, and advisory, they empower entrepreneurs and enterprises to make informed decisions.
