Role of Fastag in movement of goods under GST

CA PIYUSH KAPOOR | Last updated: 14 February 2023

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Quick Summary

FASTag is increasingly integrated with the GST e-way bill system to enhance the tracking and verification of goods movement. While not a primary legal document for proving movement under GST, its integration with the NHAI and GST Network aims to improve transparency and efficiency. The system tracks commercial vehicles and verifies travel data, but its effectiveness relies on complete toll payment data, which can be incomplete in certain areas.

INTRODUCTION Goods, as well as services, have been defined in the GST Law. The securities are excluded from the definition of goods as well as that of services. Money is also excluded from the definition of goods as well as services, however, activities relating to the use of money or its convers

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FAQ :

The integration aims to enable the GST Council and NHAI to track the movement of commercial vehicles, verify travel data supplied for GST filings, and improve the existing track and trace mechanisms for GST e-way bills.

No, FASTag is not considered a primary document to prove the movement of goods under GST law. The e-way bill is the mandatory document for goods valued over INR 50,000.

FASTag information is sent to the GST department only when a FASTag payment is made through an online system. Information is not updated if tolls are paid in cash or if vehicles travel through areas without tolls.

If FASTag information is not received, the department may issue a notice for supply without movement of goods or for an invoice issued without supply, potentially imposing penalties. The onus is then on the supplier to justify the transaction.

In the absence of FASTag information, documents like Tax Invoice/e-Invoice, Delivery Challan, Weight Slip, E-way Bill, Builty of Transporter, and payment proof from the receiver can be used to justify the transaction.