14
Oct2017

Big Challenge Awaits Under GST Regime- E WAY BILL

  1. GST Council in its meeting on August 5th, 2017 has approved the implementation of E Way bill system. However, the GST Council has now decided to defer the implementation of the same up to March 31st, 2018.
  2. The states can follow their E Way bill/ Road permit system which was used prior to July 1st, 2017 till the implementation of E Way bill. One of the major advantages of the E waybill is to get rid of the entry tax & Check posts with the smooth passage of goods from one state to another with accountability of the goods being carried through electronic invoice exceeding Rs. 50,000/-
  3. The E Way bill, once generated is valid for one day for consignment transported up to 100 K.M and then one additional day for every 100 K.M thereafter. But in case the goods are not transported and there is a change in the mode of transport or the vehicle is changed during the course of transportation the E Way bill has to be cancelled electronically. It is important to note that E Way bill is even required in case of movement of goods intrastate beyond 10 K.M.
  4. The mechanism purposed through the E Way bill is much ahead of time and required a good level of understanding of the technology, system & education of even such as drivers. But at the same time a large proportion of the transport sector is unorganized and ill-educated towards the use of technology and infrastructure also needs to be upgraded to cope up with the technical requirements.
  5. Even though the E Way bill system will to a large extent fill the loophole of goods not being transported and prohibit any clandestine removal of the same but the system required a high degree of technology use and Upgradation of infrastructure to suit the GST mechanism.
  6. The Indian Industry which has so far been pampered by a very weak system of law implementation on one side and inspector was on other side is to gear up to adhere the technological change in the operation and follow up of the GST Mechanism.
  7. It will not only be a big challenge for the Industry but also for the Government to successfully manage the E Way bill in the GST regime. As how for the Government crack down on the erring miscreants of law and how far the law enforcing agency compromise with the system in a question., which is still to be answered and only time will tell about this

 

At present we can only wish for the success of the GST regime for a better and developed India.

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