Implementation of the electronic way bill, seen as a crucial
piece of legislation for India’s road transport and logistics industry, seems
to characterize the pitfalls in the ambitious GST regime. Never more than now,
as India’s truckers and goods transporters continue to struggle with state
enforcement machineries like in the pre-GST days, even as they complain about
high input cost structure and under-the-radar goods’ transportation continues
unabated. Under the e-way bill facility, it was proposed that movement of
goods worth more than Rs 50,000 by a registered entity will require prior
online registration of the consignment on the GST portal and securing this
e-way bill. This was meant to be a change from the present system where no
electronic invoice is required and checks instead happen through border check
posts or inspectors at each state. The entity carrying the goods was to be
mandated to carry the e-way bill along with invoice/bill of supply/delivery
challan. But sheer under preparedness of the GSTN network has thwarted the
government and from initial implementation deadline of October; the deadline
for e-way bill has now been pushed to June next year. In a statement after the meeting of GST Council last Saturday,
the Finance Ministry spoke of its decision on the e-way bill: 1) Nationwide e-way Bill system will be ready to be rolled out
on a trial basis latest by 16th January, 2018. Trade and transporters can start
using this system on a voluntary basis from 16th January, 2018. 2) 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. States may choose
their own timings for implementation of e-way Bill for intra-State movement of
goods on any date before 1st June, 2018. 3) A Uniform System of e-way Bill for inter-State as well as
intra-State movement will be implemented across the country by 1st June, 2018. What it failed to do, however, is check tax evasion and increased
corruption regarding inter-state movement of goods post-GST. Instead of check posts,
state government inspectors now have mobile vans for inspections of inter-state
goods movement, which traders and truckers say has increased bribe payments etc.
manifold. Some allege anywhere up to 100 trucks are stranded outside states
like Uttar Pradesh and Madhya Pradesh as haggling over value of consignments
continues between truckers and inspectors. Obviously, this has also slowed down
the movement of goods, further costing the transporters. So were check posts, with varying levies across states and as
any different tax formats ideal and should they make a comeback? Far from it.
What transport experts had been pushing for was a two-step process, central to
which was the E-Way Bill: 1) Get every consignment valued above a certain benchmark figure
(Rs 50,000 to start with) for inter-state movement registered on the GST
Network via an e-bill. This will generate an E-Bill Number (EBN) on the
trucker’s mobile phone and act as an e-way bill for goods’ transit. 2) Over some time, ensure GPS is installed on all trucks and
vehicles used for inter-state truck movement so that goods’ movement can be
tracked and appropriate tax levied. When GST came into effect from July this year, traders had
stopped booking freight since they feared crackdowns but once they realized
there was no digital billing, they came right back and continued old ways of
tax evasion by under invoicing. This is what an e-waybill system will prevent
in future. Under this process, the consignee has to book the consignment on the
GSTN network, get an OTP (e-way bill no or EBN). If there are 20 consignments on a truck, each over Rs 20,000 in
value and traders who have booked have lodged invoices on GSTN, then the EBN
number thus generated will be on driver mobile phone. He will also carry paper
invoices for consignments. This helps tax compliance. Government has earlier
said that about 1% of consignments will be checked randomly and if any
discrepancy found, the fine will be 10 times the value of the consignment.
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