Chhattisgarh govt has issued a new notification, in a move desired to strengthen the monitoring of evasion, immediately effective, requiring the generation of e-way bills for all intra-state goods movement over ₹50,000.
The very decision depicts the elimination of the earlier exemptions that authorize specific goods to be transported within the state without an e-way bill.
The decision of the GST department shows an effective effort to align with the national practices since the majority of the states have previously instituted identical provisions for intra-state goods movement. There were exemptions allotted for seamless intra-district movements and certain specified items, though such have now been abandoned to improve compliance and reduce bogus activities.
The recent policy change comes after 6 years of adjusting to the GST e-way bill system, which was first introduced in 2018. During this period, businesses and transporters have had the opportunity to become habituated to the system, leading to the decision to remove exemptions. The central tax department’s support for this decision demonstrates a unified effort to combat nationwide tax evasion.
The state through removing these exemptions has the purpose of managing problems like circular trading and fake billing, which have manipulated the previous leniencies. This measure is anticipated to furnish a level playing field for honest businesses, ensuring fair competition and improving the collection of input tax credits (ITC).
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It is underscored by the State Finance Minister OP Choudhary that the very decision shall just assist in lessening tax evasion however it shall make a positive compliance environment. Through eliminating such exemptions we wish to increase the clarity and ensure that honest businesses could function without the threat of unjust competition from those involved in bogus activities.
To strengthen the state’s tax collection method new rules are made, furnishing the advantage to the economy of the state. So to lead to a strong tax regime increasing the monitoring and stricter compliance measures are expected, assisting the state’s development goals.