GST Relief: Tata Motors Gets E-Way Bill Exemption in Maharashtra for Road Testing

The Commissioner of State Tax, Maharashtra State, issued Notification No. SGST/e-way bill/01/2025-26 on June 18, 2025, which provided important procedural relief to M/s. Tata Motors Passenger Vehicles Limited. The notification refers to exemption from the requirement of generating e-way bills for the transportation of motor vehicles intended for road testing, provided that the movement is not a supply as per sub-rule (5) of Rule 138A of the MGST Rules, 2017.

This decision was made in response to an official communication dated February 18, 2025, made by representatives of Tata Motors claiming operational difficulties in conducting road tests for vehicles. The Commissioner accepted that the case was genuine and granted the exemption, subject to the process and conditions being fulfilled.

Conditions for Availing the Exemption

Execution of Bond: The taxpayer should execute the bond, which is sufficient to cover the value of the motor vehicle being cleared for the purpose of road testing in a calendar month, with the Jurisdiction Deputy, Pune.

Use of Delivery Challan: Motor Vehicles shall be removed by the taxpayer for the purpose of road rest under a delivery challan signed by an authorized signatory. This delivery challan replaces the e-way bill solely for road testing movements.

Restriction of Use: The exemption to carry a delivery challan replacing an e-way bill is solely for the transportation of motor vehicles that are being used only for road testing purposes, not for selling or supplying.

Challan Format Requirements: The delivery challan must be in duplicate, pre-authenticated, and serially numbered for every calendar year and in printed format and should include the following details:

• Name, address, and GSTIN of the taxpayer.
• Jurisdictional officer’s name, division, zone, and relevant notification reference.
• Vehicle details (serial, engine, and chassis number) and its value.
• Dispatch date and probable return date.

Trade Plate Requirement: The trade plates should be displayed on the motor vehicles as specified in the Central Motor Vehicles Rules, 1989, or other applicable law.

Record Maintenance: Tata Motors must keep complete records tracking the dispatch and return of every vehicle. When the value exceeds the bond limit, then a separate bond must be executed.

Monthly Reporting: The taxpayer should file a monthly report that states all vehicles sent for testing and returned to the Taxpayer to the jurisdiction officer.

Furnishing of Additional Information: Any other relevant information must be provided upon request by the tax authority.

Moreover, Tata Motors will be solely responsible for the removal of goods without an e-waybill. If any of the five conditions have been breached, the opportunity afforded by this notification will be withdrawn immediately and without any notice.

This exemption remains valid for the financial year 2025-26, up to March 31, 2026.

Refer to the Official Notification for More Details.