Transporters welcome GST Council move to curb repeated checks on highways | Industry News
Industry bodies welcomed the decision by the 57th Goods and Service Tax Council meeting to make the inspection of goods in transit more targeted and reduce unnecessary checks on vehicles and consignments.
Under the new approach, vehicles will be stopped only on specific intelligence, with prior authorisation from an officer not below the rank of joint commissioner. Further, consignments moving across multiple states will be subject to checks primarily at the origin and destination points, rather than being repeatedly checked during transit in every state.
The All India Transporters Welfare Association (AITWA) has welcomed the move, saying these measures address a long-standing concern of the road transport industry and will significantly reduce unnecessary stoppages, delays and uncertainty during the movement of consignments.
“AITWA has been fighting this battle for years. We have repeatedly highlighted that a genuine transaction should not become a victim of procedural complications or disproportionate penalties. Error vs evasion was our representation always. Section 129, particularly the 200 per cent penalty provision, created enormous anxiety and financial exposure for transporters and taxpayers even where there was no intention to evade tax,” said Abhishek Gupta, general secretary, AITWA.
“If they don’t disturb, it will be perfect and transit time will reduce. We welcome the decision,” said K Arul, president of the Namakkal Lorry Owners’ Association (NLOA).
AITWA has consistently raised the issue of excessive transit checks and disproportionate penalties under the GST regime with the government and tax authorities. In 2021, AITWA supported the call for a Bharat Bandh and Chakka Jam on 26 February, with the transport industry specifically demanding relief from “impractical E-Way Bill provisions” and the consequences under Section 129 of the CGST Act.
Detention of goods for E-Way Bill-related issues could result in penalties running into lakhs of rupees, with the applicable penalty being linked to 200 per cent of the tax payable.
For genuine taxpayers and transporters, even inadvertent documentation errors, delays or circumstances beyond their control could create a disproportionate financial burden. The statutory provision today continues to provide for a penalty of 200 per cent of the tax payable in specified cases.
“The decision of the GST Council to move towards intelligence-based intervention and restrict unnecessary checks during transit is a very significant relief for the transport community. It will reduce transit disruptions, improve logistics efficiency and strengthen the principle of trust-based taxation,” said Ashok Goyal, National President, AITWA.
AITWA believes the latest decision can fundamentally change the experience of compliant taxpayers and transporters on Indian highways.
AITWA said that effective implementation of the decision will be critical.
