Chhattisgarh govt tightens GST E-Way Bill provisions to curb tax evasion

RAIPUR: In a significant move aimed at bolstering the monitoring of tax evasion, Chhattisgarh govt has issued a new notification, effective immediately, mandating the generation of e-way bills for all intra-state goods movement over ₹50,000.


The decision signals the removal of previous exemptions that allowed certain goods to be transported within the state without an e-way bill, an official spokesman said.


The state GST department's decision reflects a broader effort to align with national practices, as most states have already instituted similar requirements for intra-state goods movement. Initially, exemptions were granted to facilitate intra-district movements and certain specified items, but these have now been rescinded to enhance compliance and reduce fraudulent activities.


This policy shift follows six years of adaptation to the e-way bill system, first introduced in 2018. The familiarization period has enabled businesses and transporters to become accustomed to the system, paving the way for the removal of exemptions. The central tax department's concurrence with this decision underscores a unified approach to curb tax evasion nationwide.


By eliminating these exemptions, the state aims to tackle issues such as circular trading and bogus billing, which have exploited the previous leniencies. The move is expected to provide a level 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 not only help in reducing tax evasion but will also 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 added.


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


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