Tamil Nadu Implements New GST Checks to Streamline Interstate Goods Transport

The Goods and Services Tax Council met on October 8 and endorsed reforms to limit arbitrary e-way bill checks by allowing inspections only by the supplier or destination state. In response, Tamil Nadu became the first state to circulate a detailed instruction on October 14, directing its commercial taxes squads to intercept vehicles solely on the basis of specific, time-stamped intelligence and a written order from the joint commissioner (intelligence).

The memo also requires senior officials’ written authorization before any seizure, a step officials say will increase accountability. Union finance minister Nirmala Sitharaman reiterated that only officers of the originating or receiving state may detain goods. The central Board of Indirect Taxes and Customs is expected to issue a formal circular, and other states are drafting their own implementation plans.