The E-way bill system implemented in India in April-June, 2018 is a tax compliance mechanism for the movement of goods under the GST. Adopted and implemented in a phased manner, the E-Way bill system had a significant impact on the transport and logistics sector of the country. Within three months 10 crore e-way bills were generated at an average of 12 lakh bills every day. Pitched as an anti-tax-evasion system the E-way bill has been instrumental in collecting Rs 95.6 crore compared to Rs 89.8 crore in the previous financial year. The E-way bill system is also expected to revamp the transport sector of the country significantly. Let us take a look at how the E-way bill system is beneficial to both the government and the traders and transporters.
An effective system to track the movement of goods!
The E-way Bill is a document that needs to be generated online on the E-Way bill portal for transportation of goods with a consignment value of more than INR 50,000 and needs to be generated before movement of goods commences. The person who has undertaken the transportation of goods must carry the bill along with him in the physical or electronic format. Because of the common portal, all the stakeholders are able to track and verify the goods online. The way bills under the VAT era were subjected to state-specific roles and there was no common portal which made tracking the goods or checking tax evasion very difficult. The VAT era system also proved to be a lot of hassle as it meant multiple systems and multiple visits to the tax office for the collection of delivery notes.
No more long queues in front of check posts!
Before the E-way bill system, there was a number of check posts for document validation requiring a lot of time and hassle. The transporters lost valuable time and it also gave birth to corruption. However, under the E-way bill system, such long queues are easily avoided as check posts are no longer necessary. Mobile squads are now tasked with checking the E-way bills randomly anywhere and with the help of a QR code validation does not take much time. Moreover, states like UP have already implemented the RFID tagging device by the help of which E-way bills can be validated without stopping a vehicle.
What businesses need to do to use the system effectively?
The E-way bill system is implemented to serve the businesses better and solve the massive logistics problem of the country. However, in order to reap the benefits of the system businesses should understand it properly and go through the process with great care. Any inadvertent error while uploading information in the E-Way bill portal can be disastrous and traders or transporters should give extra effort to avoid such errors. Traders can use various software platforms available in the market which will not only help them avoid errors but also provide them with facilities like alerts, automatic distance calculators and data validations.