Chhattisgarh State PCS

• 29 May 2024

Chhattisgarh Mandated GST E-Way Bill Provisions

Why in News?

Recently, Chhattisgarh government has issued a notification mandating generation of e-way bills for all intra-state goods movement worth over Rs. 50,000, eliminating previous exemptions for some goods.

• E-Way Bill is a compliance mechanism wherein by way of a digital interface the person causing the movement of goods uploads the relevant information prior to the commencement of movement of goods and generates an e-way bill on the Goods and Services Tax (GST) portal.

Key Points

• Initially, exceptions were given to simplify the movement of specific items within districts, but these have been taken back to improve adherence and decrease fraudulent behaviors.
• This change in policy comes after six years of adjusting to the e-way bill system, which was initially implemented in 2018. The period of getting used to the system has allowed businesses and transporters to become familiar with it, leading to the elimination of exemptions.
  • Eliminating these exemptions is intended to address problems like circular trading and fake billing, which have taken advantage of the previous leniencies.
• The goal is to promote fair competition, enhance ITC collection, and create a level playing field for legitimate businesses.

Electronic Way (e-way) Bill

• An electronic way bill or ‘e-way bill’ system offers the technological framework to track intra-state as well as inter-state movements of goods of value exceeding Rs 50,000, for sales beyond 10 km in the GST regime.
• When an eway bill is generated, a unique E-way Bill Number (EBN) is allocated and is available to the supplier, recipient, and the transporter.
• It was launched to:
  • Facilitate faster movement of goods.
  • Improve the turnaround time of vehicles.
  • Help the logistics industry by increasing the average distances travelled and reducing the travel time as well as costs.