‘E-way bill will pose challenge to transporters’

Source: The Hitavada      Date: 16 May 2017 10:38:37


Business Bureau,

WHILE introducing Goods and Service Tax (GST), Government has said that it wants simplification in taxation structure and ease of doing business. Under GST concept there will be ‘one nation one tax’ and all the tax prayers will be bonded under single tax structure. There will be free movement of goods across the states through out the country. The contact between administration and dealers will be minimised there by minimising corruption.


The dealers on the other hand feel that the provision of e-way bills in GST will work countary to what is being said. Instead of abolishing check posts at State boundaries, the Government is providing for mobile check posts through e-way bill in GST which will empower the Inspector to check the material at every nook and corner during the smooth movement of goods. The provision of e-way bill will consolidate ‘Inspector Raj’ and may give birth to tax terrorism.


The traders feel that there should be free movement of goods across the country without any blockages. If there is system of checking at different levels, lot of time will be wasted in holding of vehicle containing goods. There will be loss of petrol and diesel too. Instead of creating an atmosphere of belief and confidence, the message of tax evasion and theft will be created under the new system.


The dealers feel that introduction of e-way bill in Goods and Services Tax is a firm step in consolidation of Inspector Raj. Now if there is movement of goods valuing more than Rs 50,000, the goods should be accompanied by e-way bill to be generated before start of movement of goods. The officers will be authorised to detain the vehicle carrying the goods for its verification. The validity of e-way bill has been fixed based on the distance for which goods will be carried for delivery. The minimum period of validity is one day for goods to be delivered upto 100 kilometre and maximum period of validity is 15 days for good to be delivered beyond 1,000 kilometre.


Before movement of good valuing more than Rs 50,000 the dealer will have to prepare e-way bill. Without registration of e-way bill on GSTN the goods cannot be moved within the State as well as inter State. As per the new rules, the verification of goods will be done on the basis of information of evasion of tax. The officer who will be checking the vehicle will have to submit report to the department within 24 hours of detention of vehicle. If the tax officer detains the vehicle for more than 30 minutes, in such case the transporter can give information of detention on GSTN server.


After registration of e-way bill, GSTN will give a registration number. The same registration number will be assigned to transporter.


The transporter will have to keep record of the registration number till the time of delivery of goods at destination. The transporter may keep hard copy of e-way bill or he can keep the information in electronic mode if he has facilities of radio frequency identification device.


The tax officer during the course of movement of goods can any time do the checking of goods. On checking the hard copy of the bill or details in radio frequency device will be checked. If satisfied he will let the vehicle go.


The dealers feel that when there is system of each bill matching and specially when entire control is through system based compliance led by technology, what is the necessity to introduce tax officers during movement of goods in the country.


Instead of ease of doing business it may be harassment in smooth way of doing business, informs a press release issued by B C Bhartia, National President of Confederation of All India Traders (CAIT).