Under the new
approach, vehicles will be stopped only on the basis of specific intelligence
and with prior authorisation from an officer not below the rank of Joint
Commissioner. For consignments moving across multiple states, checks will
primarily be undertaken at the origin and destination points, reducing the need
for repeated inspections during transit.
AITWA said the measures address a long-standing concern of the road
transport industry and could significantly reduce unnecessary stoppages, delays
and uncertainty in the movement of genuine consignments. AITWA Has Consistently Raised the
Issue AITWA has for years been
highlighting excessive transit checks and disproportionate penalties under the
GST regime before the Government and tax authorities. In 2021, the association supported the
call for a Bharat Bandh and Chakka Jam on February 26, with the transport
industry seeking relief from impractical E-Way Bill provisions and the
stringent consequences under Section 129 of the CGST Act. The association pointed out that detention
of goods over E-Way Bill-related issues could result in penalties running into
lakhs of rupees, with the statutory framework providing for a penalty of up to
200% of the tax payable in specified cases. For genuine taxpayers and
transporters, inadvertent documentation errors, delays or circumstances beyond
their control could consequently lead to a disproportionate financial
burden. AITWA said the latest decision
could significantly change the experience of compliant taxpayers and transporters
travelling across Indian highways. By moving towards intelligence-led rather than
routine and repetitive checks, legitimate consignments are expected to move
with greater predictability. In cases where an issue does arise, taxpayers and
their representatives would also have a better opportunity to reach the vehicle
and explain the relevant documentation and transaction, instead of facing
repeated intervention at multiple points during an inter-state journey. Abhishek Gupta, General Secretary, AITWA,
said: “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% penalty provision,
created enormous anxiety and financial exposure for transporters and taxpayers
even where there was no intention to evade tax.” Ashok Goyal, National President, AITWA,
said: “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.” He added, “AITWA sincerely appreciates the
intervention and efforts of the CBIC, the Policy Wing and the GST Council for
listening to the industry’s concerns and acting on issues that we have been
consistently raising. Millions of truckers, transporters and genuine taxpayers
welcome this step.” AITWA said
effective implementation of the decision in its intended spirit will be
critical to achieving the desired impact. The association expressed hope that
the new framework would bring greater consistency across states, minimise
discretionary stoppages and ensure that enforcement remains focused on genuine
cases of tax evasion rather than compliant movement of goods. The association said it looks forward to
working constructively with the CBIC, GST Council and state tax administrations
to ensure that the reform translates into smoother, faster and more transparent
movement of goods across India.
AITWA also said it
expects continued dialogue with the authorities to help identify and remove
other bottlenecks affecting the road transport sector.