The GST council which met in the national capital last week has decided to
introduce the E way bill system from February one under Goods and services tax
regime which will help monitor interstate movement of cargo.
The nationwide e way bill system will be rolled out on a trial basis from
January 16 allowing traders and transporters to test the system for a fortnight
before it becomes compulsory.
The states have been given time till June 1, 2018 to implement the e way
bill system for intra state movement of goods. A fully integrated tracking
system for all taxable goods will be in place only by the middle of next year.
The GST council's decision assumes significance amidst rumbling from some
state governments about revenue shortfalls under the new indirect tax system.
The tax receipts have dipped by over ten per cent October after healthy
collections in the first three months when the GST regime was introduced.
Finance minister Arun Jaitley has expressed optimism that the introduction of e
way bill system will help to prop up revenue collections. Tax evasion could be
easily tracked once the system is in place he said.
The council at its meeting held here last week reviewed the readiness of
hardware and software for the e way bill regime. Industry is wary that the
government is rushing through the measure within a fortnight.