In now a day’s transportation is one of the important issues in our country. For maintaining vehicles our country introduces electronic toll collection. In this Toll collection booths need an amount of operations like stopping the vehicle, lowering the casement, ruling the accurate coinage or convincing card earlier than travelers can carry on their journey. This research manuscript proposes the electronic toll collection system depends on Smart card. At this time smart card identifies user’s vehicle details and all others. After identifying user’s details ZigBee module communicates both users and toll collection. At this time GPS used to identify the users correct location. Then users pay the bill amount automatically and collect the bill. When compared to traditional method, this method is very easy and also reduces the user’s wastage of time.