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TFP Bureau, Raipur, May 28, 2024: In a significant move aimed at bolstering efforts to combat tax evasion, the Commercial Taxes (GST) Department of Chhattisgarh has abolished the exemption previously granted in the provisions of the e-way bill. The decision, effective from May 24, mandates that businesses in the state generate e-way bills for transporting goods exceeding Rs 50,000.
The exemption from e-way bill provisions, originally introduced in 2018, was intended to provide businesses and transporters time to acclimate to the new regulations. However, with e-way bill provisions now well-established nationwide for over six years, the need for exemption has diminished. While previously, e-way bills were not required for intra-district transportation within the state, except for 15 specified items, the recent notification nullifies this exemption.
The move to abolish the exemption is expected to curb misuse, particularly in circular trading and the issuance of bogus bills. By enforcing e-way bill requirements uniformly, the government aims to level the playing field for businesses, ensuring that honest traders can benefit from Input Tax Credit (ITC) without being hindered by fraudulent practices.
The decision to eliminate the exemption has received support from the Central Tax Department, underscoring the importance of uniformity in tax compliance measures across states. The implementation of e-way bill provisions is anticipated to enhance tax compliance and reduce instances of bogus billing and circular trading, ultimately fostering a more transparent and accountable business environment in Chhattisgarh.
