WHETHER E-WAY BILL IS REQUIRED FOR VEHICLES SENT FOR ROAD TESTING?

[Mr. M. GOVINDARAJAN]

Rule 138(14) of Central Goods and Services Tax Rules, 2017 provides no e-way bill is required to be generated in respect of the following-

1.  where the goods being transported are specified as below-

• Liquefied petroleum gas for supply to household and non domestic exempted category customers;
• Kerosene oil sold under Public Distribution System;
• Postal baggage transported by Department of Posts;
• Natural  or  cultured  pearls  and  precious  or  semi-precious stones; precious metals and metals clad with precious metal (Chapter 71);
• Jewellery,  goldsmiths’  and  silversmiths’  wares  and  other articles (Chapter 71);
• Currency;
• Used personal and household effects;
• Coral, unworked (0508) and worked coral (9601);

2. where the goods are being transported by a non-motorized conveyance;
3. where the goods are being transported from the customs port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs; 
4.  in respect of movement of goods within such areas as are notified under clause (d) of sub-rule (14) of rule 138 of the State or Union territory Goods and Services Tax Rules in that particular State or Union territory;
5. where the goods, other than de-oiled cake, being transported, are specified in the Schedule appended to notification No. 2/2017- Central tax (Rate), dated the 28.06.2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 674 (E), dated the 28.06.2017 as amended from time to time; 
6. where the goods being transported are alcoholic liquor for human consumption, petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas or aviation turbine fuel; 
7. where the supply of goods being transported is treated as no supply under Schedule III of the Act; 
8. where the goods being transported are transit cargo from or to Nepal or Bhutan;
1. where the goods are being transported- 

•  under customs bond from an inland container depot or a container freight station to a customs port, airport, air cargo complex and land customs station, or from one customs station or customs port to another customs station or customs port, or
•  under customs supervision or under customs seal; 

10. where the goods being transported are transit cargo from or to Nepal or Bhutan; (j) where the goods being transported are exempt from tax under notification No. 7/2017-Central Tax (Rate), dated 28.06.2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 679(E), dated the 28.06.2017 as amended from time to time and notification No. 26/2017 Central Tax (Rate), dated the 21.09. 2017 as amended from time to time;
11. any movement of goods caused by defence formation under Ministry of defence as a consignor or consignee; 
50. where the consignor of goods is the Central Government, Government of any State or a local authority for transport of goods by rail;
1000. where empty cargo containers are being transported; and
14. where the goods are being transported up to a distance of twenty kilometers from the place of the business of the consignor to a weighbridge for weighment or from the weighbridge back to the place of the business of the said consignor subject to the condition that the movement of goods is accompanied by a delivery challan issued in accordance with rule 55. 
15. where empty cylinders for packing of liquefied petroleum gas are being moved for reasons other than supply.

In Tamil Nadu Mahindra and Mahindra Limited made a representation to the GST Department, Tamil Nadu.  In their representation they expressed their difficulty in the generation of E-way Bill for vehicles sent to testing purpose.  Due to their difficulties in generation of E-way Bill for such vehicles the Company requested the Government for waiver of generation of E-way Bill for the said vehicles and for the said purpose. 

The request of the Company has been considered by the Tamil Nadu Government.  Rule 138(14) (d) of the Tamil Nadu Goods and Services Tax Rules, 2017 provides that in respect of movement of such goods and within such areas in the State and for values not exceeding such amount as the Commissioner of State Tax, in consultation with the Principal Chief Commissioner/Chief Commissioner of Central Tax, may, subject to conditions that may be specified, notify.

In exercises of the powers conferred under rule 138 (14) (d) of TNGST Rules 2017, the Commissioner of State Tax, hereby notifies that Mahindra and Mahindra Ltd, Mahindra World City, Chengalpattu, Tamil Nadu is permitted to clear the motor vehicles for road testing within the State, without generation of e -way bill, vide Notification No. 8/2022-TNGST- PP1/GST-15/23/2022, dated 18.10.2022.  The said permission is subject to the following procedures and conditions-

• The tax payer shall execute a bond sufficient to cover the value of the testing vehicles for the purpose of road testing in a calendar month with the jurisdictional Assistant Commissioner/Deputy Commissioner.
• The bond amount can be enhanced to the value of vehicles sent for road test in a year.
• A delivery challan duly signed by the authorized signatory is to be prepared for the removal of vehicles for road testing.
• The said exemption is limited to only for transportation of testing vehicles manufactured by them for the reason other than ‘by way of supply’ for only road test of testing of such vehicles.
• The delivery challan shall be prepared in triplicate.
• The delivery challan shall contain the temporary registration of the vehicle which is to be taken for road test.
• The delivery challan shall have running consecutive serial numbers for every calendar year and in printed format.
• The delivery shall contain the following information-

• The name and address of the tax payer and GSTIN;
• Name of Circle/Range, Division and the Commissionerate with whom the taxpayer is registered and the Notification number under which permission under Rule 138(14)(d) of Tamil Nadu Goods and Services Tax Rules, 2017 is granted;
• The description, vehicle serial number/engine number/chassis number to identify the testing vehicle which has been cleared for the purpose of carrying out road test along with its value;
• The date of dispatch of the vehicle and the probable time when the vehicle will return to its point of clearance.

• The details of the said delivery challan shall be intimated to the jurisdictional Officer before being brought into use.
• The testing vehicle shall carry trade plate as prescribed under Central Motor Vehicles Rules, 1989 or under any other law for the time being in force for the purpose of testing the vehicle.
• The taxpayer shall maintain proper records to correlate the dispatch and return of testing vehicles sent for road testing.
• If at any point of time the combined value of the testing vehicle exceeds the amount for which the bond has been executed, the tax payer shall execute a separate bond of differential value with the concerned jurisdictional Assistant Commissioner before removal of the testing vehicle.
• This exemption facility is restricted to cases where the vehicles are driven on road by self- propulsion for road test and return to the same premises and not when consigned to another person or when transported aboard a conveyance to another person for Testing (whether Road Test by such person or testing by otherwise).
• The taxpayer shall submit a monthly account containing the details of all testing vehicles sent and received back after road testing to the jurisdictional Assistant Commissioner / Deputy Commissioner of State Tax and Central tax.
• The tax payer shall furnish any additional relevant information pertaining to the instant subject matter which may be required by the jurisdictional Assistant commissioner / Deputy Commissioner.

The above said notification is valid for one year from the date of issue of this notification i.e. from 18.10.2022.