Traders who pay taxes honestly will benefit from abolition of exemption in provision of e-way bill

Raipur, (Team Newsbuddy): Taking an important decision towards strengthening the monitoring mechanism on tax evasion, the Commercial Tax (GST) Department has abolished the exemption given in the provisions of e-way bill in the state. For this, the government has issued a notification on May 24 itself. It will now be necessary for businessmen in the state to generate e-way bill for transporting goods worth more than Rs 50 thousand. Till now it was not necessary to issue e-way bill for transporting goods within a district in the state, as well as e-way bill was not required for transportation of any goods within the state except 15 items.

Exemption from the provisions of e-way bill was given in the year 2018 because these provisions were new and it was necessary to give time to businessmen/transporters to become well acquainted with these provisions. It has been 6 years now since the provisions of e-way bill were implemented across the country and everyone has become well acquainted with it, it is worth mentioning here that except for one or two states, e-way bill is mandatory for transportation of goods within the state in most of the states of the country. The Central Tax Department has also agreed to end the exemption from e-way bill.

The exemption given in issuing e-way bill has been misused the most by those doing circular trading and issuing bogus bills, hence the biggest benefit of ending this exemption will be to those businessmen who honestly deposit their taxes but due to circular trading or issuing bogus bills, they are not able to get the benefit of ITC. Implementation of the provisions of e-way bill will help the department in stopping circular trading and bogus billing. The removal of exemptions given in the provisions of e-way bill will have a positive impact on the environment of tax compliance in the state. This will curb the tendency of issuing bogus bills and tax evasion by issuing raw bills.