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On the day the Union Budget 2018 was presented in Parliament by Union Finance Minister Arun Jaitley, technical glitches in the e-way bill system disrupted the movement of goods across states. The electronic bill system, which tracks the inter-state movement of goods, was inaugurated on February 1 after undergoing trials.
After the disruption, the Central Board of Excise and Customs announced that the trial phase of the electronic system would continue until further orders. In collaboration with GST Network (GSTN), the NIC had been conducting trials for the e-way bill system since January 16. In fact, the deadline for implementation of the e-way bill for inter-state movement of goods was brought forward from April 1 to February 1 after GST revenues began to slide in last October. The GST council, meanwhile, left states with the option to choose their own deadlines for intra-state movement of goods before June 1, 2018.
So what is an e-way bill?
The electronic way bill system provides the technological framework to track both inter-state and intra-state movements of goods of value exceeding Rs 50,000, for sales beyond 10 km in the new Goods and Services Tax regime.
The system does away with the previous practice of obtaining a separate transit pass for passage of goods in every state. The e-way bill ensures that it will be valid across the country.
What do the e-way bill rules state?
Every registered supplier under the GSTN will require prior online registration on the e-way bill portal for the movement of goods. The rules also state that the permits issued would be valid for only one day and for not more than 100 km. The same principle applies for the following days as well.
How does this check tax compliance?
Tax authorities will have the power to check the e-way bill for discrepancies at any point during the transportation of goods.
Who can generate an e-way bill?
Any supplier/recipient/transporter can generate an e-way bill. The moment it is generated, there is no requirement to fill the information pertaining to goods in the GST return as it will be automated. A unique e-way bill number (EBN), as well as a QR code, will be generated for tracking.
What is the industry saying?
The industry is of the opinion that the e-way bill system will not completely stop tax evasion. They feel that it may result in supply chain bottlenecks in case of technical glitches, which is exactly what had happened on its launch day.
