Introduction: On January 21, 2024, the Commissioner of Commercial Taxes in Telangana issued a critical circular mandating the usage of electronic Way (e-Way) bills for the interstate movement of specified Value Added Tax (VAT) commodities. This directive, rooted in a 2017 mandate, underscores the state’s commitment to streamlining tax compliance and enhancing the monitoring of sensitive goods transportation.
Detailed Analysis: The circular, identified as CCT’s Ref No.A(1)/5/2024, specifically designates five goods as sensitive commodities: Petroleum crude, High Speed Diesel, Motor spirit, Natural gas, and Aviation turbine fuel. For the interstate transportation of these items, an advance e-Way bill must be generated by the consignee and provided to the consignor, which in turn must accompany the goods during transit.
This procedure is facilitated through the TGCT portal, where dealers can apply for login credentials to generate necessary e-Way bills. The jurisdictional authority has a three-day window to approve or reject these applications after due verification. The circular emphasizes the responsibility of Jurisdictional Authorities to ensure the generation and monitoring of e-Way bills for transactions involving the listed commodities.
Moreover, the directive instructs Joint Commissioners (ST) across the state to ensure compliance with these provisions and to take necessary action against deviations. This move aims to prevent tax evasion and ensure transparency in the movement of sensitive commodities across state lines.
Conclusion: The implementation of mandatory e-Way bills for specified VAT commodities in Telangana represents a significant step towards enhancing tax compliance and monitoring within the state. By focusing on sensitive commodities that have high potential for tax evasion, the Commercial Taxes Department aims to safeguard revenue and ensure a seamless supply chain. This directive not only underscores the importance of adapting to digital measures for tax compliance but also aligns with the state’s broader objectives of fostering a transparent and efficient tax administration system.
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GOVERNMENT OF TELANGANA
COMMERCIAL TAXES DEPARTMENT
Office of the
Commissioner of Commercial Taxes,
Telangana :: Hyderabad.
Circular No. CCT’s Ref No.A(1)/5/2024 | Date: 21-01-2024
Sub:- C.T. Department – Mandatory usage of e-Way bills for VAT Commodities as specified below – Regarding.
Ref:- CCT’s Ref. No. CS(1)/39/2013, Dt: 01.03.2017.
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Attention of all the Officers noted in the address entry is invited to the subject & reference cited, wherein the usage of e-Way bill was made mandatory w.e.f. 07.03.2017.
In terms of sub-rule (2) of Rule 55 of TVAT Act, 2005, the undersigned hereby notifies the specified five goods i.e., Petroleum crude, High Speed Diesel, Motor spirit, Natural gas and Aviation turbine fuel as the list of sensitive commodities, for which an advance Way bill shall be generated by the consignee and sent to the consignor for interstate movement of the said goods. This E-waybill shall accompany the goods and shall be tendered by the person-in-charge of the goods vehicle, when intercepted by the authority prescribed.
In this connection, the TGCT portal is being provided with an option for the dealer to apply for creation of Login credentials. This application will have to be either approved or rejected by the jurisdictional authority(after due verification) within three(3) days. Upon approval, the dealer will be able to generate e-Way bills for the said commodities (both advance way bill and outward waybill).
Accordingly, the Jurisdictional Authorities shall ensure generation of e-Way bills by the taxpayer located in their jurisdiction, both while purchasing and selling the above listed commodities. The same shall be monitored while conducting Vehicular Traffic Check (VTC).
Therefore, all the Joint Commissioners (ST) in the State are requested to issue suitable instructions to all the field staff for insisting the advance way bill of consignee, when the goods are transported from outside the State to the consignee in the State of Telangana. In case if the above said goods are transported without advance way bill necessary action as per the provisions of TVAT shall be taken. Any deviation in this regard will be viewed seriously.
The Joint Commissioners (ST) are also requested to give wide publicity to these instructions in the trade circles and also affixing the same in the notice board of every office.
Above instructions shall be followed scrupulously.
Sd/-T.K Sreedevi
Commissioner (ST)
To
All the Joint Commissioners (ST),
Deputy Commissioners (ST),
Assistant Commissioners (ST).
All field officers.
Copy to
CCW for making necessary changes in the portal.
All senior officers for information.
