The Office of the Commissioner of State Tax, Maharashtra State has issued a significant facilitation measure granting relief from e-way bill requirements for motor vehicles moved exclusively for road-testing purposes.
The notification, bearing reference SGST/e-way bill/02/2025-26 dated February 20, 2026, has been issued under sub-rule (5) of Rule 138A of the Maharashtra Goods and Services Tax Rules, 2017. The order exempts automobile manufacturers from generating e-way bills when vehicles are transported solely for road testing and not for supply under GST law.
Relief Granted Following Industry Representation
The exemption follows a detailed representation submitted by Tata Motors Ltd. (GSTIN: 27AALCT0864B1ZE) through its letter dated November 13, 2025. The company highlighted operational challenges arising from the frequent movement of vehicles for testing and validation purposes. Such movements, it was contended, do not constitute “supply” under GST and therefore should not attract the compliance burden of e-way bill generation.
After examining the legal and operational aspects of the issue, the Commissioner of State Tax, Asheesh Sharma, concluded that the representation was justified. The Commissioner noted that continuous testing is intrinsic to automobile manufacturing operations and that insisting on e-way bills for non-supply movements created avoidable compliance hurdles.
Accordingly, the waiver has been formally granted, subject to strict procedural safeguards.
Conditions and Safeguards Prescribed
While providing relief, the notification lays down comprehensive compliance conditions to prevent misuse:
1. Execution of Bond
The taxpayer must execute a bond covering the total value of vehicles proposed to be moved for road testing during a calendar month. The bond is to be furnished before the Jurisdictional State Tax Officer, Pimpri-702, Pune.
2. Movement Under Delivery Challan
Every vehicle transported for testing must be accompanied by a pre-authenticated and serially numbered delivery challan. The challan must be duly signed by the authorized signatory.
3. Limited Scope of Exemption
The waiver strictly applies only to motor vehicles moved exclusively for road-testing purposes and only where such movement does not amount to supply under GST law. Any deviation would render the exemption inapplicable.
4. Mandatory Particulars on Challan
The delivery challan must contain detailed information, including:
- GSTIN of the taxpayer
- Jurisdictional details
- Reference to the notification
- Complete vehicle identification particulars (engine number, chassis number, serial number)
- Date of dispatch
- Expected timeline for return
5. Use of Trade Plates
All vehicles moved under this facility must display valid trade plates in accordance with the Central Motor Vehicles Rules, 1989.
6. Record Maintenance and Reporting
The taxpayer is required to maintain comprehensive records correlating each vehicle’s dispatch and return. A monthly statement must also be submitted to the jurisdictional officer.
7. Accountability and Revocation
The notification clearly states that the taxpayer bears full responsibility for goods transported without an e-way bill under this permission. Any breach of the prescribed conditions may lead to withdrawal of the facility.
Validity Period
The exemption is valid for the financial year 2025–26 and will remain in force up to March 31, 2026, unless withdrawn earlier.
Read More: Supreme Court Rules Rooh Afza as ‘Fruit Drink’; Marketing Labels Not Decisive for Tax Classification
