Chhattisgarh State GST E-Way Bill Rules: Intra-State Thresholds & Exemptions

Movement of goods purely within Chhattisgarh is governed by a separate, state-specific notification issued by the Commercial Tax Department under Rule 138(1) of the CGGST Rules, 2017, distinct from the national ₹50,000 threshold that applies to inter-state movement. Businesses that assume the national threshold automatically applies to their local Raipur-to-Bhilai or Urla-to-Siltara movements frequently either over-comply (generating e-way bills for shipments that no longer require one) or, more riskily, under-comply for categories the state notification has deliberately kept at a lower limit.

1. Generation Thresholds in Chhattisgarh

• Inter-state movement: An e-way bill is mandatory for any consignment value exceeding ₹50,000, under the uniform national rule (with certain categories, such as inter-state movement of handicraft goods or inter-state job work by the principal, requiring an e-way bill irrespective of value).
• Intra-state movement within Chhattisgarh — general goods: With effect from 1 April 2025, the Chhattisgarh Commercial Tax Department raised the intra-state e-way bill exemption threshold to ₹1,00,000 for the movement of goods generally, under Notification No. F 10-12/2025/CT/V (27) dated 27 March 2025. This means most ordinary intra-state consignments valued up to ₹1 lakh do not require an e-way bill.
• Intra-state movement — specified sensitive categories: The ₹50,000 threshold continues to apply specifically to Pan Masala, tobacco and tobacco products, specified wood/timber products, iron and steel, and coal, moved intra-state within Chhattisgarh. These categories were deliberately excluded from the higher ₹1 lakh relaxation because of their historical association with under-invoicing and revenue leakage.
• Exempted goods movement: No e-way bill is required, irrespective of value, for goods listed in the Annexure to Rule 138(14) of the CGST Rules — such as fresh agricultural produce, live animals, unroasted coffee, and specified other exempt categories.

Practical Warning: Steel re-rollers, TMT bar manufacturers, and induction furnace units in Urla and Siltara are among the businesses most exposed to this rule, since iron and steel remain in the ₹50,000 category even though most other goods they might also deal in enjoy the ₹1 lakh relaxation. A mixed consignment (say, MS scrap plus other inputs) needs to be evaluated carefully — if any part of the value relates to a specified category, err toward generating the e-way bill rather than relying on the general ₹1 lakh limit.

2. Mandatory Fields in Part-A and Part-B

An e-way bill consists of two parts:

1. Part-A (Consignment details): GSTIN of supplier and recipient, place of delivery, HSN code, document type and number (tax invoice/delivery challan/bill of supply), and taxable/invoice value.
2. Part-B (Vehicle/transporter details): Transporter ID or vehicle registration number, and railway receipt/airway bill number where relevant to the mode of transport.

Crucial Rule: Generating Part-A alone does not constitute a valid e-way bill for movement of goods. Part-B (vehicle details) must be updated before the conveyance commences transit — except where goods are being moved a short distance (as prescribed by rule) to a transporter's place of business for further transportation, in which case Part-B can be completed after handover to the transporter.

3. Validity Period Calculation

Extension of E-Way Bill Validity

Where a vehicle faces a genuine delay — mechanical breakdown, transshipment hold-up, natural calamity, or law-and-order disruption — the transporter or supplier can extend the e-way bill's validity on the portal, generally within a defined window before or after the original expiry (the portal restricts extension requests to a short band around expiry, so this should be actioned promptly once a delay becomes apparent rather than left until after expiry).

4. Road Scrutiny & Vehicle Detention under Section 129

When state mobile squad officers intercept a vehicle — a common occurrence at Raipur's ring road checkpoints, Tatibandh, and interstate border check posts — the procedure follows a defined sequence:

1. Physical inspection: Officers recording an interception must issue an inspection report (Form GST MOV-04 series) within the prescribed period after interception.
2. Summary report: A summary of the inspection must be recorded on the portal within the statutory time limit.
3. Detention and penalty under Section 129: Where goods and the conveyance are detained for want of proper documents (missing or invalid e-way bill, mismatched invoice value, or expired validity), release requires payment of the applicable penalty —
   • For goods where the owner comes forward: penalty equal to 200% of the tax payable on such goods (in cases involving contravention with intent to evade tax), or a lower amount as applicable where no such intent is alleged;
   • For exempted goods: a nominal penalty of 2% of the value of goods or a specified fixed amount, whichever is lower.
4. Notice and order: A show-cause notice must be issued, and the taxpayer given an opportunity of hearing, before a final demand order confirming detention/penalty is passed.

Practical Note: A genuine clerical error — such as a typo in the vehicle number or a minor mismatch between invoice and e-way bill value within tolerance limits recognised by circulars — is treated far more leniently than a case where the e-way bill was never generated at all. Keep a copy of the e-way bill, tax invoice, and any extension acknowledgment in the vehicle at all times; drivers carrying only a printed invoice without the e-way bill remain the single most common cause of on-road detention in Chhattisgarh.

5. Practical Compliance Checklist

1. Confirm whether the goods being moved intra-state fall in the ₹50,000 sensitive category (pan masala, tobacco, specified wood products, iron and steel, coal) or the general ₹1,00,000 category before deciding whether an e-way bill is needed.
2. Never dispatch a vehicle with only Part-A completed — ensure Part-B vehicle details are updated before the goods leave the premises.
3. Track e-way bill expiry against actual transit time and extend proactively if a delay is likely, rather than after expiry.
4. Maintain a physical or digital copy of the e-way bill and invoice in the vehicle at all times.
5. For businesses dealing in iron and steel or scrap, apply the ₹50,000 threshold as the default working limit even for otherwise low-value local movements.

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