The GST Network (GSTN) has introduced important changes in the e-Way Bill (EWB) system. These changes are aimed at improving transparency, better tracking of goods movement, and reducing misuse of e-Way Bills.

The new system changes were announced through an official GSTN Advisory dated 20 May 2026.

Let us understand these updates in simple language.

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What is an e-Way Bill?

An e-Way Bill is an electronic document required for movement of goods worth more than ₹50,000 under GST.

It contains details like:

• Supplier details
• Buyer details
• Goods details
• Vehicle details
• Transport information

It helps the government track movement of goods and prevent tax evasion.

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Major Changes Introduced by GSTN

The latest advisory contains two major updates:

1. Mandatory “Ship To GSTIN” in Bill-To / Ship-To cases
2. Introduction of e-Way Bill Closure Facility

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1. “Ship To GSTIN” Now Mandatory

What is a Bill-To / Ship-To Transaction?

Sometimes, goods are billed to one party but delivered to another location.

Example:

• ABC Ltd. in Delhi places an order.
• Goods are directly delivered to its branch in Jaipur.

In such cases:

• Bill To = Delhi office
• Ship To = Jaipur branch

Now, GSTN has made it mandatory to mention the “Ship To GSTIN” while generating the e-Way Bill.

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What if the Consignee is Unregistered?

If the goods are being delivered to an unregistered person, then the value “URP” must be entered in the “Ship To GSTIN” field.

“URP” means:
Unregistered Person

This change will help improve tracking and reduce incorrect reporting.

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2. New e-Way Bill Closure Facility Introduced

This is the biggest update.

Earlier, users could only CANCEL an e-Way Bill.

Now, GSTN has introduced a facility to CLOSE the e-Way Bill after successful delivery of goods.

Currently, this facility is voluntary.

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Why Was This Facility Introduced?

Many times:

• Goods are delivered successfully,
• But the e-Way Bill remains active till expiry.

This creates issues like:

• Difficulty in tracking completed transactions
• Misuse risk
• Incorrect movement status
• Compliance confusion

The new closure facility helps mark the transaction as “completed”.

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Who Can Close the e-Way Bill?

The following persons can close the e-Way Bill:

• Supplier
• Recipient
• Transporter
• Driver or authorized person

This gives flexibility to businesses and logistics operators.

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How Can e-Way Bill Be Closed?

The closure can be done:

1. e-Way Bill-wise

You can close one specific e-Way Bill individually.

2. Date-wise

You can close multiple e-Way Bills generated on a particular date.

This is especially useful for businesses handling bulk deliveries daily.

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Mobile Number-Based Closure Facility

A very useful feature has also been introduced.

At the time of generating the e-Way Bill, users can now provide a mobile number specifically for closure purposes.

That person can later close the e-Way Bill using OTP verification.

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Where Can the Mobile Number Be Updated?

The mobile number can also be updated during:

• Vehicle update
• Consolidated e-Way Bill operations
• Validity extension

This provides operational flexibility.

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Driver Can Also Close the e-Way Bill

This is a practical feature for transport businesses.

The driver or authorized person can:

• Open the e-Way Bill portal
• Enter the registered mobile number
• Verify through OTP
• Close the e-Way Bill

This is expected to reduce dependency on office staff.

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Important Time Limit for Closure

The e-Way Bill can be closed:

• On the same day of delivery, or
• On the immediately next day

Businesses should ensure timely closure to maintain proper records.

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API Facility Also Introduced

GSTN has also released API support for:

• ERP systems
• GSPs
• ASPs
• Large taxpayers
• System integrators

For API-based closure, the following details are required:

• e-Way Bill Number
• Closure Date
• Remarks

This will help large businesses automate the process.

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Important Date for Implementation

GSTN has informed that:

• API changes are already available in Sandbox environment
• Production deployment is planned by 15 June 2026

Businesses using ERP or integrated software should immediately coordinate with their software vendors.

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What Businesses Should Do Now

Recommended Action Steps

1. Update Internal SOPs

Businesses should update their internal logistics and GST procedures.

2. Train Staff

Accounts teams, dispatch teams, and transporters should be informed about the new closure process.

3. Update ERP Systems

ERP software should be modified to support:

• Mandatory Ship To GSTIN
• e-Way Bill closure
• Mobile-based closure
• API integration

4. Avoid Last-Minute Changes

Businesses should complete testing before the production rollout date.

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Practical Benefits of This Update

The new system can provide several advantages:

Better Compliance

Completed deliveries can now be properly tracked.

Reduced Disputes

Closure confirms successful completion of transportation.

Better Audit Trail

Helps maintain proper movement records.

Operational Transparency

Transporters and businesses can monitor completed transactions more efficiently.

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Important Point to Remember

Currently, the e-Way Bill Closure facility is VOLUNTARY.

It is not mandatory as of now.

However, businesses should start using it early because:

• It may become mandatory in future,
• Early adoption reduces compliance risk,
• Proper closure improves documentation quality.

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Final Thoughts

The GSTN’s latest update is a significant step towards smarter and more transparent logistics compliance under GST.

The introduction of the e-Way Bill Closure facility will help businesses maintain cleaner records and improve transaction traceability.

Taxpayers, transporters, ERP vendors, and logistics operators should start preparing immediately before the production rollout scheduled for 15 June 2026.

Proper implementation at an early stage will help businesses avoid future compliance issues and ensure smoother GST operations.

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Source:
GSTN Advisory dated 20.05.2026 regarding Enhancements in e-Way Bill Portal.

Below are the main categories where GST registration becomes mandatory.

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1. Persons Making Inter-State Taxable Supply

If a person supplies goods or services from one state to another state, GST registration becomes compulsory.

Example

Rahul lives in Delhi and sells graphic design services to a company in Mumbai.

Even if Rahul earns only ₹3 lakh per year, he is making an inter-state supply, therefore:

➡ Rahul must obtain GST registration.

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2. Casual Taxable Persons

A casual taxable person is someone who occasionally supplies goods or services in a state where they do not have a fixed place of business.

Example

A clothing seller from Jaipur sets up a stall in a Delhi exhibition for 5 days.

Even if he sells products worth ₹50,000, he must obtain temporary GST registration as a casual taxable person.

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3. Persons Required to Pay Tax under Reverse Charge (RCM)

In some transactions, the buyer (recipient) is required to pay GST instead of the seller.

This is called Reverse Charge Mechanism (RCM).

If a person is liable to pay tax under RCM, GST registration becomes compulsory.

Example

A company hires services from an unregistered transporter.

The company may have to pay GST under RCM, therefore GST registration is required.

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4. E-Commerce Operators

Businesses that operate online marketplaces where other sellers list their products must register under GST.

Example

Companies like:

• Amazon
• Flipkart
• Meesho

These platforms are called e-commerce operators, and GST registration is compulsory for them.

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5. Persons Supplying Through E-Commerce Platforms

If you sell products through platforms like:

• Amazon
• Flipkart
• Meesho

GST registration is generally mandatory, even if your turnover is small.

Example

Priya sells handmade jewellery through Amazon.

Her yearly sales are ₹1.5 lakh, but since she sells through an e-commerce platform, she must obtain GST registration.

(Note: Some service providers have been given relaxation by the government.)

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6. Input Service Distributor (ISD)

Large businesses with multiple branches often distribute input tax credit (ITC) from their head office to other branches.

Such offices are called Input Service Distributors (ISD) and must register under GST.

Example

A company has offices in:

• Delhi
• Mumbai
• Bangalore

The head office distributes GST credit to branches, therefore it must obtain ISD registration.

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7. Non-Resident Taxable Persons

A non-resident taxable person is someone who:

• Does not have a fixed place of business in India
• But supplies goods or services in India

Such persons must obtain GST registration before starting business.

Example

A foreign company participates in a trade exhibition in India and sells products there.

It must obtain GST registration as a Non-Resident Taxable Person.

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8. Persons Required to Deduct TDS under GST

Certain government departments and notified entities must deduct Tax Deducted at Source (TDS) under GST.

These entities must register under GST.

Example

A government department makes a payment of ₹5 lakh to a contractor.

The department may be required to deduct GST TDS, therefore GST registration becomes mandatory.

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9. Persons Required to Collect TCS

E-commerce operators must collect Tax Collected at Source (TCS) from sellers using their platform.

Such operators must obtain GST registration.

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10. Agents Supplying on Behalf of Other Persons

If a person supplies goods or services as an agent for another business, GST registration becomes compulsory.

Example

A commission agent sells agricultural equipment for a manufacturer.

Even if his commission income is small, he must obtain GST registration.

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Important Point to Remember

If a person falls under Section 24, the GST exemption limit does not apply.

This means:

• Even ₹1 of business turnover
• Can require GST registration.

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Simple Summary

GST registration becomes compulsory if you:

✔ Supply goods/services to another state
✔ Sell through e-commerce platforms
✔ Operate an e-commerce marketplace
✔ Participate in exhibitions or temporary sales
✔ Pay GST under reverse charge
✔ Work as an agent for another business
✔ Deduct TDS or collect TCS under GST

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Conclusion

Section 24 of the CGST Act ensures that certain categories of businesses must register under GST regardless of their turnover.

This rule mainly applies to:

• Online sellers
• Inter-state suppliers
• Agents
• E-commerce businesses
• Casual traders

Understanding this provision is important because operating without required GST registration can lead to penalties and legal issues.

If you are starting a new business, freelancing, or selling online, it is always advisable to check whether Section 24 applies to you before assuming that GST registration is not required.

Many people in India hear the words Income Tax and GST very often, but they are confused about what these taxes actually mean.

Some people think both are the same, but in reality they are completely different types of taxes.

In this article, we will understand:

• What is Income Tax
• What is GST
• The major differences between Income Tax and GST
• Simple real-life examples

Let’s understand everything step by step.

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What is Income Tax?

Income Tax is a direct tax that you pay to the government on the income you earn.

This means if you earn money from:

• Salary
• Business
• Profession
• Rent
• Interest
• Capital gains

then you may have to pay Income Tax.

The tax is calculated based on your total yearly income.

Example

Suppose:

Rahul works in a company and earns ₹8,00,000 per year.

After applying deductions and tax slabs, he may have to pay some Income Tax to the government.

Here the tax is paid directly by Rahul, so it is called a Direct Tax.

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What is GST?

GST stands for Goods and Services Tax.

It is an Indirect Tax that is charged when you buy goods or services.

You pay GST when you purchase things like:

• Mobile phones
• Clothes
• Restaurant food
• Online services
• Electronics
• Furniture

But the tax is collected by the seller and then deposited to the government.

Example

Suppose you buy a mobile phone for ₹20,000.

GST rate on mobiles is 18%.

GST amount = ₹3,600

So you pay:

₹20,000 + ₹3,600 = ₹23,600

Here you paid GST indirectly, which the seller deposits to the government.

That is why GST is called an Indirect Tax.

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Key Difference Between Income Tax and GST

Basis	Income Tax	GST
Type of Tax	Direct Tax	Indirect Tax
Paid By	Individual or business earning income	Final consumer
Applied On	Income earned	Goods and services purchased
Collected By	Government directly from taxpayer	Businesses collect and deposit
Example	Salary income tax	GST on restaurant bill

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Simple Real-Life Example

Let’s understand this with a simple example.

Rahul earns ₹10,00,000 salary per year.

From this income, he may have to pay Income Tax depending on tax slabs.

Now Rahul goes to a restaurant and eats dinner worth ₹1,000.

Restaurant GST = 5%

GST = ₹50

Total bill = ₹1,050

So in this situation:

• Income Tax was paid because Rahul earned income
• GST was paid because Rahul purchased a service

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Who Needs to Pay Income Tax?

Income Tax must be paid by:

• Salaried employees
• Business owners
• Professionals (CA, lawyer, doctor, consultant)
• Freelancers
• Investors earning capital gains

However, tax is payable only if income exceeds the exemption limit.

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Who Needs to Register for GST?

GST registration is required mainly for:

• Businesses selling goods
• Service providers
• E-commerce sellers
• Online businesses

But GST registration is required only if turnover crosses certain limits.

Generally:

• ₹40 lakh for goods
• ₹20 lakh for services

(Some states have different limits.)

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Why Both Taxes Are Important

Both Income Tax and GST are important because they help the government collect revenue which is used for:

• Roads and infrastructure
• Healthcare
• Education
• Defence
• Government services

Without taxes, it would be difficult for the government to run the country.

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Conclusion

In simple words:

• Income Tax is paid on the money you earn
• GST is paid on the things you buy

Income Tax is a direct tax, while GST is an indirect tax collected through businesses.

Understanding the difference between these two taxes helps people better understand the Indian tax system and manage their finances more efficiently.