Chhattisgarh GST Dept Mandates E-Way Bills for All Intra-State Goods Over ₹50,000 to curb tax evasion

By: Admin
May 28, 2024
Categories: State GST Notification and Circular
4 Min Read

In a significant effort to enhance the monitoring of tax evasion, the Chhattisgarh government has issued a new notification, effective immediately, requiring the generation of e-way bills for all intra-state goods movements exceeding ₹50,000. This decision marks the end of previous exemptions that allowed certain goods to be transported within the state without an e-way bill, according to an official spokesman.

The state GST department’s move aligns with broader national practices, as most states have already implemented similar requirements for intra-state goods movement. Initially, exemptions were provided to facilitate intra-district movements and specific items, but these have now been rescinded to boost compliance and curb fraudulent activities.

This policy change follows six years of adaptation to the e-way bill system, which was first introduced in 2018. The familiarization period has allowed businesses and transporters to get accustomed to the system, setting the stage for the removal of exemptions. The central tax department’s agreement with this decision highlights a unified approach to combat tax evasion across the country.

By eliminating these exemptions, the state aims to address issues such as circular trading and bogus billing that exploited the previous leniencies. This move is expected to level the playing field for honest businesses, ensuring fair competition and improving the collection of input tax credits (ITC).

State Finance Minister OP Choudhary emphasized that this decision will help reduce tax evasion and create a more positive compliance environment. “By removing these exemptions, we aim to enhance transparency and ensure that honest businesses can operate without the threat of unfair competition from those engaging in fraudulent activities,” he said.

The new rules are designed to strengthen the state’s tax collection mechanism, ultimately benefiting the state’s economy. Enhanced monitoring and stricter compliance measures are expected to lead to a more robust tax regime, supporting the state’s development goals.

For Official E way Bill Notification dated June 19, 2018: CLICK HERE

For Official E way Bill Notification dated May 24, 2024: CLICK HERE