Union government has decided to implement nationwide GST e-way bills from February 2018.
What is an e-way bill?
The e-way bill can be electronically generated on GSTN either by the supplier or recipient of the consignment, before the movement of goods.
The transporter needs to carry an electronically generated way bill, with every consignment having value exceeding INR 50,000.
Which will be valid for varying durations depending on the distance travelled.
Over 150 items of common use, including LPG cylinders, vegetables, foodgrain and jewellery, will be exempt from such transport permits, which can be checked by designated tax officials by intercepting a transporting vehicle.
Few States like Karnataka have already imposed their own requirements for such bills. Click here to know more about e-way bills
What is the recent decision on e-way bill?
Starting February 1, all inter-State movement of goods worth over Rs. 50,000 will be tracked with the introduction of the e-way bill system under the GST regime.
All consignments moving more than 10 km from their origin will require prior registration and generation of an e-way bill through the GST Network.
Goods moved on non-motorised conveyance, such as carts, have been left out.
New decision requires all States must implement the bill system for capturing intra-State trade.
Therefore, a fully integrated tracking system for all taxable goods can be expected only then.
What are the practical challenges?
Firms operating across States, will now face differing compliance requirements for inter-State trade and intra-State trade, depending on when individual States launch their own e-way bill systems.
Inter-State movement of goods was also tracked under the VAT (value-added tax) regime but intra-State transactions were not, this will add financial burdens to the traders.
The major area of concern is there is only a one-day validity for distances up to 100 Km, this will affect most business firms.
Proper implementation of e-way bills require robust connectivity and infrastructure, but India is yet to address such issues.
