The name e-way bill itself suggests the role of it in the goods and product sector. This type of documentation is the electronic system that states the details of goods that are moved, transported, or carried for any consignment. Generally, the bill of more than Rs.50000/- would fall under this category. It is generated from the set-up of GSTN for the e-way billing system for which the transporter needs to raise it before the goods movement is initiated. The validity of the e-bill may vary as per the distance till which goods will be travelled. Ideally, such type of bill is one day for the 100 km of goods movement.
Is it obligatory at the time of all goods movement?
Considering the important of e-way bill GST, there is no doubt that from 1st of April 2018, it has become mandatory especially for all the inter-state transport goods. Generally, goods that have value of Rs.50000 or above will only be charged with it. It is ideally made compulsory for the goods movement within the phased manner of the state from the 15th of April. There are also goods that are out of the ambit of e-bill. This includes the perishable products such as milk and meat or fruits and vegetables. Other than this, the items do not require e-way bill such as silver, gold, or even the cooking gas cylinder.
Explain its necessity:
This type of bill is said to be important for the anti-tax evasion measure. It is important part of the architecture of GST. The tax authorities believe that if it is well implemented, then it would dissuade the evaders of the tax from underreporting transactions. It also would check some of the scenarios where the whole transaction is not recorded between the seller and the buyer. This way, the GST revenue would get boosted and thus, it will stabilize the amount of Rs.85,000-90,000 core. The government started with this aim keeping the anti-evasion measurement in mind that would of course bring the buoyancy
The concerns associated with it:
The industry till date is worried only about the technology system. The industry rather is not sure if the system is prepared for handling such type of huge e-way billing volume coming on its way. So what could be the possible concern to this? Well, eventually it would lead to the trade disruption. When the e-way bill system was not rolled out previously, there were so many glitches at the technical level, which resulted to huge delays for even creating the e-way bills of GST. This also resulted for the trade to become standstill because of which the government had to defer the implementation.
In order to put the technical glitches aside, the National Informatics and e-way bill GST centre have come up with the finest infrastructure. The system would entirely be focusing on handling the e-way bills of 75 lakh. Previously, it could manage to handle only 26 lakh billing. Besides, there will be certain rules that would state the goods inspection be done anytime during the journey of the transfer.