The e way bill
system requiring inter-state transporters carry an electronic waybill intended
to check rampant tax evasion will come into force within a month from February
one it was officially announced. The
system part of the Goods and Service Tax regime is expected to boost the revenues
of state and central governments by twenty per cent it has been estimated.
implementation of the GST from July 1, the requirement of carrying e-way bill
was postponed indefinitely pending IT network readiness. This was done even in
the 17 states, which in the pre-GST era, had a well established electronic
challan or e-way bill system.
evasion was rampant as some preferred not to pay tax by resorting to cash
dealing. Once the e-way bill system is implemented, tax avoidance will become
extremely difficult as the government will have details of all goods above the
value of Rs 50,000 moved and can spot the mismatch if either the supplier or
the purchaser does not file tax returns, he said.
GST Council had on December 16 decided to implement the e-way bill mechanism
throughout the country by June 1, 2018.
The official said
e-way bill for inter-state movements will be implemented from February 1 and
for intra-state movement from June 1. The official said states have been given
the option of choosing when they want to implement the intra-state e-way bill
between February 1 and June 1.
They have also
been given the option to exempt movement of goods within 10-km radius, he said,
adding all essential goods have been exempted from the requirement of carrying
e- way bill.
tax evasion, the e-way bill will boost revenues by 15-20 per cent. “The
experience of states which had e-way bill system in pre-GST era showed a 15-20
per cent rise in revenue,”A pilot of e-way bill has been successfully run in
Karnataka and the IT system is fully geared to meet any requirement.
E-way bill is an
electronic way bill for movement of goods which can be generated on the GSTN
(common portal). Movement of goods of more than Rs 50,000 in value cannot be
made by a registered person without an e-way bill. The e-way bill can also be
generated or cancelled through SMS, he said. When an e-way bill is generated, a
unique e-way bill number (EBN) is allocated and is available to the supplier, recipient,
and the transporter, he added. Trade and transporters can start using this
system on a voluntary basis from January 16.
The rules for
implementation of nationwide e-way bill system for inter-state movement of
goods on a compulsory basis will be notified with effect from February 1,
2018.This will bring uniformity across the states for seamless inter-state
movement of goods.