Context:

The nationwide GST e-way (electronic-way) bill has came into force from 1st April 2018 for all inter-state movement of goods.

About E-Way Bill:

• E-way bill is a document that is generated electronically, which is required for the movement of goods of more than Rs. 50,000 in value from one place to another.
• The validity of e-way bill is only for one day for goods moving from 0 to 100km, three days for 100 to 300 km, five days for 300 to 500 km, 10 days for 500 to 1,000 km and 15 days for those goods moving beyond 1,000 km.
• It is aimed to provide:
  • Single e-way bill for seamless movement of goods throughout the country
  • One transit pass in each state for movement of goods
  • Self-declaration model for the movement of goods

• E-way Bill can be generated through various modes like Web (Online), Android App, SMS, using Bulk Upload Tool and API based site to site integration etc. Consolidated e-way Bill can be generated by transporters for a vehicle carrying multiple consignments.
• Transporters can create multiple Sub-Users and allocate roles to them. This way large transporters can declare their various offices as sub-users.
• There is a provision for cancellation of e-way Bill within 24 hours by the person who has generated the e-way Bill.
• The recipient can also reject the e-way Bill within the validity period of the e-way bill or 72 hours of generation of the e-way bill by the consignor whichever is earlier.

Implementation of the Bill:

• The implementation of the nationwide e-Way Bill mechanism under GST regime is being done by GSTN in association with the National Informatics Centre (NIC) and is being run on portal namely https://ewaybillgst.gov.in.
• GSTN would generate e-way bills that will be valid for 1 -15 days, depending on the distance to be travelled – one day for 100 km and 15 days for more than 1,000 km transit.
• The tax officials can inspect the ‘e-way bill’ anytime during the transit to check tax evasion.

Benefits of the Bill:

• Dissolution of State borders: One of the most key achievements of the e-way bill is the effective dissolution of the state borders.
• Time Saver: The time wasted at state borders to validate documents with regards to the inter-state movement of goods, coupled with the fact that every state had its own format of permits which was an actual hindrance to any business, which will now be solved with the bill.
• Effective compliance: The billing mechanism will ensure that the goods being transported comply with the GST Law and is an effective tool to track the movement of goods.
• No scope for tax evasion and corruption: Earlier documentation required human intervention, which often leads to tax evasion and corruption. Now, with the e-way bill coming in, the suppliers, the recipient and the transporter will all be on one platform, and with their open participation and one single document generated with the government’s approval will accompany and will be valid across the nation.

Conclusion:

While the e-way bill has been formulated and conceptualized looking at the broader picture of reduction in tax evasion, seamless inter-state transportation of goods and minimal loss of time at checkpoints. Moreover, different states prescribed different e-way bill rules which were a hurdle for the transporters. The user-friendly e-way bill provisions under GST need to bring in a uniform e-way bill rule which will be applicable throughout the country for the betterment of economy as a whole.

Source:PIB