In a crucial regulatory update, authorities have made it mandatory for all businesses involved in the supply of scrap to generate an e-way bill for consignments exceeding ₹50,000. This requirement aligns with the Goods and Services Tax (GST) regulations, aiming to ensure transparency, prevent tax evasion, and maintain a proper record of high-value transactions in the scrap industry.

Mandatory Compliance to Avoid Legal Consequences

The directive explicitly states that failure to generate an e-way bill for scrap consignments above the specified threshold will result in strict penalties. Businesses found non-compliant could face fines, shipment detentions, and even legal proceedings under applicable tax laws. The government’s enforcement agencies have been instructed to conduct strict monitoring to ensure adherence to the regulations.

Government’s Commitment to Transparency and Accountability

With this move, the authorities are reinforcing their commitment to streamlining tax compliance and enhancing the traceability of goods movement. By making e-way bills compulsory for the scrap sector, the government aims to curb revenue leakages, reduce fraudulent transactions, and promote fair business practices.

Key Takeaways for Scrap Traders

✅ Mandatory E-Way Bill: Required for scrap consignments exceeding ₹50,000 in value.
✅ Legal Implications: Non-compliance can result in penalties, legal proceedings, and shipment seizures.
✅ Enhanced Monitoring: Authorities will actively track and verify scrap trade movements.
✅ Improved Compliance: The measure strengthens GST law enforcement, ensuring fair taxation.

Official Circular & Authority's Directive

As per the official circular issued by the authorities:

"Taxpayers engaged in the business of scrap supply must mandatorily generate an e-way bill for any consignment exceeding ₹50,000 in value. Non-compliance will invite necessary legal action as per relevant provisions of tax law. This directive has been issued with the prior approval of the Competent Authority."

Traders and businesses dealing in scrap are advised to ensure strict compliance to avoid any legal or financial repercussions. For further clarifications, they are encouraged to consult the relevant tax authorities.