E-Way Bill - How it Works and its Impact in Lay Man Terms
Electronic Way Bill (E-Way Bill) is basically a compliance mechanism wherein by way of a digital interface the person causing the movement of goods uploads the relevant information prior to the commencement of movement of goods and generates e-way bill on the GST portal.
The e-way bill provisions aim to remove the ills of the erstwhile way bill system prevailing under VAT in different states, which was a major contributor to the bottlenecks at the check posts. Moreover different states prescribed different e-way bill rules which made compliance difficult. The e-way bill provision under GST aims to bring in a uniform e-way bill rule which will be applicable throughout the country.
The E-way bill mechanism will ensure that goods being transported comply with the GST Law and are an effective tool to track movement of goods and check tax evasion. Some features of the E-Way Bill are as follows-
The validity of e-way bill depends on the distance to be travelled by the goods.For a distance of less than 100 Km the e-way bill will be valid for a day from the relevant issue date. For every subsequent 100 Km thereafter, the validity will be additional one day from the relevant issue date. Some benefits of the E-Way Bill-
Road transport in India is a crucial part of the country’s transport and logistics industry. With a 10% annual growth every year, the sector has reaped the benefits of rapid expansion in the automobile industry, changes in taxation, and the boom of the e-com sector which relies on logistics for pan-India service. Now, the introduction of GST is expected to increase the need for integrated logistics solutions as companies decrease the number of warehouses they maintain in different states. The changes brought about by GST are also expected to solve one of the major problems this sector faces – the inter-state transport of goods without the hassle of documentation and long waiting queues at check posts.