No Mandatory Disclosure of Goods Transportation Route Under GST

In a recent judgment, the Allahabad High Court has ruled that there is no provision under the Goods and Services Tax (GST) Act to disclose the specific route for goods transportation. This decision has significant implications for businesses and tax authorities alike, as it clarifies that sellers are not obligated to specify routes for goods in transit.

The case in question, Vishal Steel Supplier v. State of U.P., involved a petitioner who was transporting goods from Muzaffarnagar to Ghaziabad. The goods were stopped in Hapur by tax authorities, who suspected that the route taken was not standard and that the driver had a mobile number of a local dealer. However, the court found that the documentation accompanying the goods, including a tax invoice and e-way bill, was in order.

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The court highlighted that the GST Act does not mandate the disclosure of a specific transportation route, a requirement that existed under the previous VAT regime. The High Court quashed the detention orders, stating that the authorities could only act when there is a lack of genuine documentation, which was not the case here. Additionally, the court ruled that without evidence of intent to evade tax, the detention of goods was unjustified, thereby mandating the refund of any amounts deposited by the petitioner.

This judgment reinforces the legal stance on transportation routes under GST, making it clear that sellers are not obligated to specify routes for goods in transit if all other requirements of documentation is satisfied with the consignment. The court's decision is a significant relief for businesses, as it eliminates the need to disclose sensitive information about their supply chain.

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