E-Bill : System for documentation and detection of goods transportation : At last, the much anticipated electronic system for documentation and detection of goods transportation, otherwise called E-way bill, has been reintroduced on April 1, 2018, for interstate products travel. The anti-tax evasion measure presented by the Central Government as one of the urgent parts of the GST policy that was up to this point put on hold due to the glitches on the E-way bill portal has been at long last mandated across the nation.
Evidently, it was necessary to reveal the bill as quickly as time permits as to gear up the plummeting charge collections in spite of the tremendous pace of GST registration. There are some noteworthy concerns that have arisen due to the sudden holdback of the implementation of E-way bill despite its take off on February 1.
#1. What were reasons for delay E-way bill mandate
It was feared that some degenerate duty authorities may take undue advantage of technical blockage and pester the traders by halting hindering the consignment and may likewise stoop to rent-seeking. Accordingly, the E-way bill mandate was put on hold.
#2. What were the apprehensions due to deferment of E-way bill take off
The successive deferments of E-way bill mandate had raised grave concerns regarding trade and commerce. In spite of the fact that the decision was taken by the government after technical logjams at the E-way bill gateway and resultant stagnation of mercantile, it had led to serious apprehensions. It had gravely affected the government revenue. It was worried that the traders may seek undue benefit by underreporting their exchanges. This could be a noteworthy reason behind diving of GST revenue. In order to dissuade the unreasonable attempts of traders, E-way bill was necessary.
#3. How will the E-way bill help increase the Government revenue
Currently, a large part of GST revenue pegged at INR 85,000-90,000 crore has been adhered up due to the absence of E-way bill. The recent decision of the government to reintroduce E-way bill will support the government revenue up to much extent.
#4. Which type of products requires E-way bill
E-way bill is compulsory for interstate travel of all merchandise of value exceeding INR 50,000. However, a certain category of products is still excluded from the ambit of the e-way bill. This covers perishable items, for example, meat, drain and drain items, foods grown from the ground. Other items include gold and silver jewelry, LPG cylinders, silk, fleece and handlooms.
#5. Where is the E-way bill applicable
E-way bill is applicable nationwide for interstate movement of merchandise. However, it is as not yet applicable in 8 states viz. Maharashtra, Pondicherry, Bihar, Assam, Tripura, Rajasthan, Tamil Nadu and Gujarat as per the directives of the 26th GST Council meeting.
The E-way bill will become effective for intrastate movement of products after April 15 in phases.
#6. What measures have been introduced to prevent technical glitches in E-way bill gateway
To rule out technical burglaries, the infrastructure enhanced by the GSTN and the National Informatics Center. Under the new system 75 lakh e-way bills can be handled day by day, as compared to earlier furthest reaches that was 26 lakh.
#7. In what manner will the hindrances for traders be minimized
The duty barriers will be minimized to prevent harassment of traders, similarly as the merchandise will be inspected just once amid the travel. The main exception will be in case a specific data on tax avoidance is traced. Furthermore, the transporter can grumble over the entryway, in case his freight is detained for more than 30 minutes.
Conclusion- These are some of the newly implemented reforms under new E-way bill system that won’t just rule out the previous impediments yet will likewise yield complete benefit of GST registration to the government and taxpayers.