West Bengal Lowers Intrastate E-way Bill Threshold to Align with National Standards and Curb GST Leakage
West Bengal Lowers Intrastate E-way Bill Threshold to Align with National Standards and Curb GST Leakage
In a significant move to harmonize with the nationwide threshold and deter GST evasion, West Bengal has announced a reduction in the intrastate e-way bill threshold from Rs 1 lakh to Rs 50,000, effective from December 2023. This decision was communicated through a recent West Bengal GST notification, mandating an e-way bill for the intrastate movement of goods exceeding Rs 50,000 in value. This provision also extends to job work goods.
Explaining the rationale behind this policy change, the state GST commissioner cited two primary factors:
Harmonization with National Standards: Aligning the intrastate e-way bill threshold with the nationwide limit of Rs 50,000 for interstate goods movement streamlines regulatory compliance and eliminates any potential confusion or misinterpretation.
Curbing GST Leakage: The higher threshold was being exploited by unscrupulous traders to evade GST payments, resulting in revenue losses for the state. Lowering the threshold will enhance tax compliance and protect the state's fiscal interests.
Initially, the state had maintained a higher intrastate threshold of Rs 1 lakh to provide support to small traders and allow them to adapt to the e-way system without undue disruption. However, with the system now streamlined and operational, the threshold has been reduced to align with national standards and address GST leakage concerns. This decision underscores the state's commitment to ensuring a transparent and efficient tax administration system.