The goal of implementing a uniform pan-India system that will govern the way transportation of goods take place in our country will finally be realized on the 3rd of June.
The e-Way Bill is an electronic document that has to be generated before the transportation of goods worth more than Rs 50,000. The inter-state system for the same was rolled out all over the country on the 1st of April. However, the intra-state e Way Bill is being rolled out in phases from the 15th of April.
Now, it is being reported that eight states have announced that they will be implementing the Electronic Way Bill mechanism for the transport of goods within their respective territories by the 3rd of June. The Bill is being touted as a crucial measure to prevent evasion of taxes that was rampant under the previous VAT regime.
The intra-state e-Way Bill mechanism will become mandatory for Goa, Jammu, and Kashmir, Mizoram, Odisha, Punjab and Chhattisgarh on the 1st of June. Moreover, Tamil Nadu and West Bengal will be implementing the same on the 2nd and 3rd of this month respectively.
How will the Digital e Way Bill benefit the government?
An Electronic Way Bill contains the details regarding the origin and destination of the cargo that is being transported. It also spells out the specifications of the vehicle that will be transporting the goods. These measures will help to block the loss in government revenue by bringing in businesses dealing in cash within the formal economy. The government believes that almost Rs 10,000 crore can be added to the GST collections due to this mechanism.
However, people familiar with the system has said that the earnings of April may not be as expected as tax officials are being lenient on traders and transporters so as to allow them to get accustomed to the system.
The government has also released data stating that more than 6.3 crore e Way Bills have been generated till the 30th of May and this includes more than 2 crore bills for intrastate movement of goods. This is an achievement for the GST Network. This is because, unlike February, the e-Way portal, developed by the National Informatics Centre and managed by the GST Network, has worked seamlessly and handled all the traffic without developing any problem.
Analysis has revealed that there is still a wide gap between the estimated budget for central GST (CGST) collections for 2018-19 and the actual CGST revenue that is being raised so far. The difference is Rs 4300 crore or 9 percent monthly.
However, tax evasion will be brought under check by the e Way Bill system and the invoice-matching mechanism, according to tax officials.
Another important benefit of the new system is that incidents concerning goods in transit being intercepted for verification has reduced significantly.
To summarize, the Bill has more positives than negatives and is sure to help the government to raise more revenue and also improve compliance among traders and others.