E-Way Bill - Revolutionary Road

Source: The Hitavada      Date: 08 Apr 2018 11:21:47


 

THE much delayed E-Way Bill has been implemented from 1st April 2018 for inter-State movement of cargo in India. The intra-state E-way bill (for movement within State) is a subject of State decision and is also expected to start by June 2018 for all states (for cargo value of Rs 50,000+ and distance of 50km). We believe the Government has improved the system in consultation with industry experts post system failure in February 2018. 

The implementation of E-Way Bill will complement the GST compliance with recording and monitoring of goods transport in India. E-Way Bill will help improve tax collection for the Government and provide additional tool to check tax evasion in the system.


The transport industry is expected to see significant transformation in regard to reporting and compliance but cost of compliance will increase significantly for less than truck load and express parcel delivery.


Our interactions with the industry suggest a gradual shift towards formalisation which will depend on self-compliance and effective implementation by the Government.
The entry barriers for express and LTL business will increase while it will not have material impact on Exim and CFS
business.