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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.

 

Taxation is an essential resource for governance and revenue collection, and it is a sovereign right. The Constitution of India establishes the basis for taxation and divides authority between the central government and state governments.

In India, taxes are imposed in accordance with laws passed by the state and central governments. Direct and indirect taxes are the two main categories of taxes, and several acts and constitutional clauses regulate how they are implemented.

Constitutional Framework

The power to levy taxes in India is derived from:

Article 265: “No tax shall be levied or collected except by the authority of law.”

Article 246: Distribution of legislative powers under three lists:

• Article 246(1): Union List
• Article 246(3):  State List
• Article 246(2): Concurrent List

Seventh Schedule: Subjects on which central, state, or both can levy taxes.

Classification of Taxes

Direct Tax: One cannot transfer direct taxes to another party; they are imposed directly on people or organisations. Examples are corporation tax and income tax. They are progressive, which means that those with higher incomes pay more, so advancing income equality.

Indirect Tax: Imposed on products and services and have the possibility to be transferred from producers to consumers. Customs duty, excise duty, and GST are a few examples. Regardless of income, all consumers pay the same rate, making these regressive in general.

Criteria	Direct Tax	Indirect Tax
Nature	Progressive	Regressive
Example	Income Tax, Corporate Tax	GST, Customs Duty
Burden	On the taxpayer	Passed on to the consumer
Administered by	CBDT	CBIC
Compliance	Complex and documentation-heavy	Easy to collect at point of sale

Cess and Surcharge

The terms “cess” and “surcharge” are frequently confused. Article 270 of the Constitution refers to a cess, which is a form of tax collected for a particular purpose, such as infrastructure or education. However, as stated in Article 271, a surcharge is an additional tax that is imposed on top of already-existing taxes, typically to generate money for certain purposes.

The Consolidated Fund of India, which the government uses for public spending, receives the sums from both cess and surcharge. In the M/s. SRD Nutrients Pvt. Ltd. vs. Commissioner of Central Excise, Guwahati [SC 2017] case, the Supreme Court made it clear that the higher education and education cess should be regarded as a surcharge.

Advantages and Disadvantages

Aspect	Direct Taxes	Indirect Taxes
Nature	Progressive: determined by wealth or income	Regressive – same rate for everyone
Progress	Promotes income equality	The burden falls more on lower-income consumers
Transparency	Clearly specified and documented	Hidden in prices, consumers are unaware
Tax Burden	Cannot be shifted to others	Shifted to end consumers
Administration	Complicated filing and compliance procedures	Easily gathered at the moment of sale
Stability of Revenue	Predictable government revenue	Varies according to patterns in consumption
Impact on Inflation	Can aid in reducing inflation	Tends to cause inflation and price increases
Risk of Compliance	Increased chances of tax evasion	Integrated collection reduces evasion
Impact on Economy	Could discourage investment	Promotes saving; can be modified to meet policy objectives

This Article is here for educational purpose only. The Author here explains the very basic concept of Tax System in India.

In this digital era, even a common man knows about the GST( Goods and Services Tax) by its name. Any person thinks of any idea for doing business, the first thing which strikes in his/her mind is that he/she must get the business registered under the GST Act.

But is it true that every business person needs to get registered for GST? Actually not.

Under the GST Act, the threshold limit is a very important term, which is the basis of registration requirement. Here, we will discuss the threshold limit applicable according to the provisions and rules. Threshold limit is decided based on the turnover as specified in the GST Law for the same.

Other than the business falling under the limit specified, there are a few other activities for which GST Registration is bound to be taken.

A person who is running a business or planning to start a business, must ensure whether he/she falls into the threshold limit to avoid the GST Registration till the limit meets or he/she is mandatorily required to get registered under GST laws as discussed below.

Threshold Limits are as specified under the Laws

Any person engaged in providing the services, where the aggregate turnover* exceeds Rs. 20 Lacs must get GSTN to do the business.

For special category states**, the above mentioned limit of Rs 20 Lacs to be considered as Rs 10 Lacs for checking the applicability.

Now, for the sale of goods within the same state, the threshold limit for states other than special category states, is Rs. 40 Lacs for intra state transactions. (Special category states** will be considered Rs. 20 Lacs)

* Aggregate Turnover means

The Aggregate Value of

1. all taxable supplies (excluding inwards transactions chargeable on Reverse Charge Mechanism basis), 
2. Exempt supplies
3. Exports of goods or services or both
4. Interstate supplies of persons with same PAN on all India basis, but, excluding the CGST, SGST, IGST, and cess.

** Special Category states mean the states of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

The States/UTs had the option to choose the threshold limit to be considered for GST Registration. Accordingly, below mentioned states/UTs chose the limit for themselves.

States/UTs who considers the limit of Rs. 40 Lacs, are as mentioned below:

Kerala, Chhattisgarh, Jharkhand, Delhi, Bihar, Maharashtra, Andhra Pradesh, Gujarat, Haryana, Goa, Punjab, Uttar Pradesh, Himachal Pradesh, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, West Bengal, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu, Andaman and Nicobar Islands, Chandigarh, Jammu and Kashmir, Ladakh and Assam.

Telangana, being a normal and the only state, falls for the limit of Rs. 20/10 Lacs, as the case may.

States/UTs who considers the limit of Rs. 20 Lacs, are here mentioned:

Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh and Uttarakhand.

Now, other than the business entities that fall under the threshold limit specified above, a few business entities are mandatorily required to get registered under the GST Laws, which are as follows:

1. Interstate Suppliers
2. Casual taxable Persons
3. Chargeable under Reverse Charge Mechanism
4. Non Resident Taxable Person
5. Persons required to deduct TDS under law
6. Persons required to collect TCS under law
7. Input Service Distributors
8. E-Commerce Operator
9. Persons making a sale on behalf of someone else whether as an Agent or Principal
10. Providing OIDAR Services
11. Suppliers who supply goods through e-commerce operators who are liable to collect tax at source.

It is also to be noted that any business entity does not fall under the threshold limit specified here, can also get registered under the GST voluntarily. But once the registration is done, all provisions and rules will be applicable on those who opted the same.