Archives June 2026

It can be challenging for operational staff to ensure a smooth transfer of goods for your business while maintaining complete regulatory compliance. The uncertainty around transportation laws and the requirement to wait for documentation are two major causes of inefficiency for finance executives. The Electronic Way Bill (E-Way Bill) system, which was incorporated into India’s Goods and Services Tax (GST) system, is the main digital tool designed to expedite this process. By guaranteeing that every significant goods transfer is documented and tracked, it reduces the chance of tax evasion and makes the entire transportation process transparent.

What is an E-Way Bill?

Before starting the movement of goods, a registered individual must create an electronic document called an E-Way Bill on the official portal. When a single invoice, bill, or delivery challan covers a cargo for more than ₹50,000, this bill is required. A distinct E-Way Bill Number (EBN) is assigned and made available to the transporter, the supplier, and the recipient after it has been generated.

The bill is constructed from two primary components:

Part A: This captures details of the goods and the transaction, including the recipient’s GSTIN, place of delivery PIN code, invoice details, value of goods, and the reason for transportation. This section also requires accurate HSN codes: 4 digits for turnover up to ₹5 crores and 6 digits for turnover exceeding ₹5 crores.

Part B: This focuses solely on transportation logistics, requiring the vehicle number and transporter details.

Applicability and Mandatory Requirements

E-Way Bills must be generated whenever goods are moved in a conveyance of value more than ₹50,000, whether the movement is:

• In relation to a formal supply such as a sale or transfer.
• For reasons other than a supply, such as a goods return.
• Due to an inward supply from an unregistered person.

Importantly, for certain specific goods, the E-Way Bill must be generated regardless of the consignment value:

• Inter-state movement of goods by the principal to a job worker.
• Inter-state transport of handicraft goods by an exempted dealer.
• Intra-state movement of gold and precious stones if the state has notified a threshold (typically ₹2 lakhs) under Rule 138F.

Who is Responsible for Generation?

The responsibility for generating the E-Way Bill typically falls on the registered consignor or consignee.

Registered Person: They must generate the bill for movements over ₹50,000 and can also choose to generate it for lower-value movements. If the person is required to issue e-invoices, the E-Way Bill should ideally be generated via the Invoice Reference Number (IRN) on the E-Invoice portal.

Unregistered Persons: If an unregistered person makes a supply to a registered person, the receiver is responsible for ensuring all compliance is met, acting as if they were the supplier.

Transporter: The transporter must generate the bill if the supplier or recipient has not done so. For multiple consignments in a single vehicle, a transporter can generate a consolidated E-Way Bill using Form GST EWB-02.

E-Way Bill Validity and Time Limits

The validity of an E-Way Bill is calculated from the date and time of its generation, based on the distance the goods must travel:

Type of Cargo	Distance (or part thereof)	Validity Period
Other than Over Dimensional Cargo (ODC)	Every 200 Kms	1 Day
Over Dimensional Cargo (ODC)	Every 20 Kms	1 Day

The validity can be extended by the generator eight hours prior to or within eight hours following expiration. The entire extension is only available in extraordinary circumstances and is limited to 360 days from the initial generation date. Furthermore, only documents dated within the last 180 days are eligible for creating E-Way Bills.

Situations in Which an E-Way Bill Is Not Necessary

1. In several situations, the e-way bill is exempt, including:
2. movement of a non-motor vehicle.
3. goods that are carried under seal or customs supervision.
4. Transport goods to or from Bhutan or Nepal.
5. Movements caused by defence formations.
6. Transportation within 20 km between a company location and a weighbridge, as long as a delivery challan is present.
7. Certain commodities are free from state regulations; for example, in states like Tamil Nadu and Delhi, certain intrastate movements are subject to higher limitations of ₹1 lakh.

Conclusion

A significant step toward digital and transparent logistics management under GST is the E-Way Bill system. Making sure logistics data corresponds with the digital footprint in the Unified Annual Information Statement (Form 168) is important in the current Income Tax Act 2025 framework. Any firm must correctly calculate validity periods and comply with required Multi-Factor Authentication (MFA). Following these guidelines not only guarantees smooth logistical operations but also protects your business from severe fines under Section 129 of the CGST Act.

In today’s modern society, many Indians depend on foreign sources for their income. This foreign revenue is typically taxed by the country where it is earned. However, under the Income Tax Act of 2025, residents are also required to pay taxes on their global income, including incomes from foreign countries.

To avoid paying taxes on the same income twice, taxpayers in India can apply for a relief known as the ‘Foreign Tax Credit’ (FTC). To qualify for the FTC, taxpayers must file Form 44 with the Income Tax Department.

What is Form 44?

To claim a foreign tax credit on paid foreign income tax, a resident taxpayer must submit Form 44. According to Rule 152 of the Income Tax Rules, 2026, filing this form is required. It includes information like the following and serves as a declaration and proof of taxes paid overseas:

• determining foreign revenue.
• amount of foreign tax deducted or paid.
• income kind and country of origin.
• documentation or certificates certifying the payment of foreign taxes.

Form 44 must be submitted by the end of the applicable tax year, at the earliest. The taxpayer faces the risk of losing their foreign tax credit claim for that year if it is not filed within the time limit.

Contents of Form 44

Form 44 is divided into four sections:

1. Basic information: taxpayer details (name, PAN, and address); the relevant tax year; and details of foreign income and tax paid.
2. Refund details: Information related to any refund of foreign taxes due to loss carrybacks or dispute resolution.
3. Verification: Taxpayer’s declaration and verification with a digital signature or electronic verification code (EVC).
4. Attachments: Supporting documents such as foreign tax payment certificates and proof of payment must be uploaded in digital format.

Key Documents Required for FTC Claim

To support the claim in form 44, taxpayers must submit the following:

• A certificate or statement from the foreign tax authority or withholding agent indicating the tax deducted or paid.
• Proof of foreign tax payment, like bank statements or tax receipts.
• A statement of income from that foreign country.
• Corresponding details entered in the Income Tax Return (ITR) under the specified foreign income schedules.

Procedure and Due Date for Filing Form 44

Form 44 must be filed electronically on the Income Tax Department’s e-filing portal. It should ideally be filed on or before the due date for filing the ITR under Section 156 of the 2025 Act. While the 2025 Act is more flexible, failure to file Form 44 before the final assessment can lead to the disallowance of the FTC claim. Taxpayers must ensure that the figures in Form 44 match the entries in Form 168 (Unified AIS) for consistency.

Claiming an FTC – Important Points

• FTC is allowed only for taxes on income, surcharges, and cess, but not for penalties, interest, or fees.
• If foreign taxes are disputed in the source country, FTC is disallowed until the dispute is resolved and proof of final settlement is submitted.
• Currency conversion of foreign tax paid must be done using the Telegraphic Transfer Buying Rate (TTBR) as published by the Reserve Bank of India on the last day of the month preceding the tax payment month.
• The foreign tax credit applies separately for each country; the total credit is aggregated accordingly.
• If income is assessed under alternate tax regimes (like MAT for companies), FTC is still available on the tax paid for foreign income.

Conclusion

In order to file relief claims under the Income Tax Act of 2025, Form 44 is an essential compliance form. Taxpayers must file the Foreign Tax Credit appropriately and within the allotted timeframes in order to avoid paying taxes on the same income twice. Processing is kept straightforward and litigation-free with accurate documentation and matching data across digital tax forms.

The Goods and Services Tax (GST) system was designed to simplify indirect taxation by merging multiple levies into a single framework. To maintain compliance and prevent tax evasion during the movement of goods, Section 129 of the CGST Act governs the detention, seizure, and release of goods and vehicles when rules are breached. In the current 2026 tax environment, this section acts as a high-stakes enforcement tool, integrated with digital tracking and the new Income Tax Act 2025 reporting standards.

Inspection of Goods in Transit

Under GST, an E-Way Bill is mandatory for transporting goods valued above ₹50,000. The person in charge of the vehicle must carry the invoice (or e-invoice), e-way bill, and delivery challan. Authorised GST officers now use real-time data from the Invoice Management System (IMS) and Fastag logs to intercept and inspect vehicles. If documentation is missing or if the digital status of the invoice shows a discrepancy, the officer has the power to detain the consignment.

Notice, Hearing, and Order Timeline

The legal process follows a strict 7-7-15-day cycle:

• Notice: The officer must issue a written notice in FORM GST MOV-07 within 7 days of detention.
• Order: After giving the taxpayer a chance to be heard, a final order in FORM GST MOV-09 must be passed within 7 days from the date of service of the notice.
• Payment: The taxpayer then has 15 days to pay the penalty.

Penalty Structure (As of 2026)

Situation	Penalty on Taxable Goods	Penalty on Exempted Goods
Owner Comes Forward	200% of tax payable	2% of value or ₹25,000 (Whichever is less)
Owner Does Not Come Forward	50% of value or 200% of tax (Whichever is higher)	5% of value or ₹25,000 (Whichever is less)

Note: If the transporter wishes to release only the vehicle, they may do so by paying a penalty of ₹1 lakh or the applicable penalty on goods, whichever is less.

Release of Goods and Vehicle

Section 129(2) provides that detained items shall be released upon the payment of the penalty or the furnishing of a security (such as a bank guarantee) equal to the penalty amount. If the taxpayer chooses to appeal the order, they must now pre-deposit 25% of the penalty amount to the department.

Confiscation and Fine

If the penalty is not paid within 15 days of the order, the officer may initiate confiscation proceedings under Section 130 using FORM GST MOV-10. Once confiscated, the goods become the property of the central government. The owner can only reclaim them by paying a redemption fine (in addition to the tax and penalty), which cannot exceed the market value of the goods. Under the Income Tax Act 2025, such fines are strictly non-deductible as business expenses.

Conclusion

Section 129 is central to enforcing GST compliance in India’s growing economy. With the shift to the tax year 2025-26 and the implementation of Section 74A for unified tax determination, the focus has moved toward digital transparency. Businesses must ensure their physical movement of goods perfectly matches their digital records in the IMS and E-Way Bill portal to avoid significant financial penalties and the risk of confiscation.