Now e-way bill will have to be generated for transportation of goods

Taking an important decision towards strengthening the monitoring mechanism on tax evasion, the Commercial Tax (GST) Department has abolished the relaxation given in the provisions of e-way bill in the state. For this, the government has issued a notification on 24th May itself. Now it will be necessary for businessmen in the state to generate e-way bill if they transport goods worth more than Rs 50 thousand. Till now, it was not necessary to issue e-way bill for transportation of goods within a district in the state. Also, except 15 items, there was no need for e-way bill for transportation of any item within the state.

Exemption from the provisions of e-way bill was given in the year 2018 because these provisions were new and it was necessary to give time to the traders/transporters to become thoroughly familiar with these provisions. It has now been 6 years since the provisions of e-way bill came into force across the country and everyone is well acquainted with it. It is noteworthy here that except one or two states, most of the states in the country have no e-way bill. E-way bill is mandatory on transport. The Central Tax Department has also agreed to abolish the exemption from e-way bill.

The exemption given in issuing e-way bills has been misused the most by those doing circular trading and issuing bogus bills, therefore the maximum benefit of abolishing this exemption will be to those businessmen who deposit their taxes honestly but Due to circular trading or issuing bogus bills, they do not get the benefit of ITC. Implementation of the provisions of e-way bill will help the department in preventing circular trading and bogus billing.

The abolition of exemptions given in the provisions of e-way bill will have a positive impact on the tax compliance environment in the state. This will curb the tendencies of issuing bogus bills and tax evasion by issuing raw bills.