Tax evasion reason behind early rollout: Sushil Modi

A pilot of e-way bill system was implemented in Karnataka in September, under which about 1.20 e-way bills are getting generated every day.

Sushil Modi, GST, GST rollout, Goods and services tax, Sushil Modi GST, business news,

Sushil Modi. (Express photo)

Concealment of income and tax evasion were the key reasons for the government to undertake an early roll out of the e-way bill system, Bihar’s Deputy Chief Minister and finance Minister Sushil Kumar Modi said on Saturday, adding that the technological system would be developed by National Informatics Centre (NIC).

“In the December 9 meeting held by Finance Secretary Hasmukh Adhia, it was discussed that most states don’t have e-way bill system and in absence of border checkposts, taxpayers were concealing income and not paying taxes. Therefore, an early rollout of e-way bill was decided,” Modi said.

A pilot of e-way bill system was implemented in Karnataka in September, under which about 1.20 e-way bills are getting generated every day. “When it will be launched nationally, about 8 to 9 lakh e-way bills will be generated at inter-state level and about 30 lakh at intra-state level, per day,” Modi said.

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The GoM on technology and GSTN-related issues, headed by Modi, met in Bengaluru on Saturday and addressed the GST Council meeting, which was held in Delhi via videoconferencing.

The e-way bill system would be integrated with the GST Network (GSTN), Modi said. As much as Rs 40 crore advance has been given to NIC to implement the e-way bill mechanism, he added. Like GSTN, the GoM will also monitor the implementation of e-way bill system, Modi said.

Modi said exporters are getting their refunds and that is getting reflected in over 30 per cent growth in exports recorded last month. Till now, 20,950 exporters have filed for refund and about Rs 3,034 crore has been refunded till now.

“The number of complaints have been reduced by 80 per cent. At present there are only 20 per cent of complaints,which shows the system has started functioning,” he said.

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The smooth functioning of GSTN can also be gauged in the increase of returns filed and invoices processed, Modi said.

“As of now, as many as 65 crore invoices have been processed and more than 3.25 crore returns filed till date, and as many as 1.40 crore payment transactions have taken place. This shows the (smooth) functioning of GSTN,” he added.

The number of zero tax payments has also decreased. “In July, zero tax liability stood at 42 per cent. In August it dropped down to 32 per cent. It further dropped down to 30 per cent in October,” he said. WITH PTI