The GST provision
requiring transporters to carry an electronic waybill or e-way bill when moving
goods between states will be implemented from 1st February 2018 to
check rampant tax evasion and boost revenues by up to 20 per cent. After
implementation of the Goods and Services Tax (GST) from July 1, the requirement
of carrying e-way bill was postponed 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.
Earlier, tax 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.
The all-powerful GST
Council had on December 16 decided to implement the e-way bill mechanism
throughout the country by June 1.
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.
Besides plugging 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,” .
The official said 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 16th
January 2018.
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 1st February 2018.
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