Port Wings, 06 June 2018:
Since GST was implemented, E-way bill has been deferred more than five times. But, it was introduced by government changing the rules since 1 April-2018.
Now government wants to implement e-way bill as soon as possible across the country so that revenue tax collection touches new heights.
Finance Minister is expecting that after implementing E-way bill revenue collections from the GST could pick up over the coming month as provisions such as E-way bills for transport of goods kick up.
An E-way bill previously in VAT regime well known as road permit, E-sancharan, way bill, E-sugam, ST Form-10, Form-61 &62, Form-DIX, Form-402 & 403, Form-38, Form-26, JVAT-504G, Form-16, Form-49, Form-35, Form-40, Form-33, Form-32, Form-25 & Form-50 etc. different states, different names.
In some state it was being issued by manually or some states was online generation processor. Now all processor would be online /digitalize. There is no processor for issue a manual e-way bill in GST regime. The government is going to be implement a very hassle free system to reduce time wasting and will save cost of a large industry back bone. The e-way bill provisions aim to remove the ills of the erstwhile way bill system prevailing under VAT in different states, which was a major contributor to the bottlenecks at the check posts.
The E-way bill, short form for electronic way bill, is a document to be generated online under GST system, when goods of the value of more than Rs.50,000 are shipped inter-state or intra-state. The E-way bill must be raised before the goods are shipped and should be include details of the goods, their consignor, recipient or transporter.
The advantage of E-way bill is less documentation, as all the exiting state-wise documentation required for movement of goods will never again be require. Another beneficial that is available for the transporters is the establishment of RFID device in the vehicle used to transport consignment on a regular premise. The person in charge of the vehicle never again needs to convey physical copies as the device is attached to the vehicle and the e-way bill can be mapped and verified through the device.
Besides, E-way bill will reduce the logistic cost. E-way bill would reinforce proper invoicing and along these lines would reduce tax avoidance.
And importantly, It would be increase efficient & speed of transportation. A truck in India covers an annual average distance of 85,000 km as compared to 1,50,000 to 2,50,000 km in developed countries which pose a clear indication that our transportation systems needs some reforms. E-way would help to reform the industry.
On the other hand, it also has few disadvantages like poor Internet facility or not availability on internet in most of location can be big concern. Industries engaged in multiple modes of transportation will end up generating a large number of bills for every shipment.
With more states now into the system, it remains to see how the new system brings in transparency to the whole process of goods transportation.