Chhattisgarh Government Strengthens GST E-Way Bill Regulations to Combat Tax Evasion

The Raipur state government has announced a new mandate, effective immediately, requiring e-way bills for all intra-state goods movements valued over Rs. 50,000. This move abolishes previous exemptions that permitted certain goods to be transported within the state without an e-way bill, according to an official statement.

This decision aligns the state’s practices with national standards, as most states have already implemented similar e-way bill requirements for intra-state goods movement. Initially, exemptions were allowed to facilitate intra-district transport of specific items, but these have now been rescinded to enhance compliance and curb fraudulent activities.

Since the introduction of the e-way bill system in 2018, businesses and transporters have had six years to adapt. This period of familiarization has prepared them for the removal of exemptions. The central tax department's support of this decision reflects a unified strategy to reduce tax evasion.

The elimination of these exemptions aims to address issues like circular trading and bogus billing, which exploited the previous leniencies. This move is expected to create a level playing field for honest businesses, ensuring fair competition and improving the collection of input tax credits (ITC).

State Finance Minister OP Choudhary highlighted that this decision will foster 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 stated.