For the inter-state movement of goods and services under GST, mandatory generation of e-way bill became effective from 1st February, 2018. However, within hours, e-way bill generating platform collapsed and the Government was forced to postponed the mandatory generation of e-way bill but its trial will remain continue. The GST Council in its January 2018 meeting had decided to implement the e-way bill mechanism throughout the country from 1st of February, 2018.
Why e-way bill: The GST system came into effect on July 1, 2017. It was hoped that in the case of uniformity of taxes in all states, the seller would not create invoice in another state by selling the goods and services in one state. But that did not happen. Goods are sold by the sellers in a state, its invoice is being made in the other state. This was affecting the movement of goods on the checkpost. Smooth movement of goods was one of the objectives of GST but that was not ensured . Another reason behind implementing e-way bill is lower collection of GST. In this way, the two main objectives of implementing e-bills are:
- The smooth movement of goods from one place to another place.
- Keep an eye on tax evaders.
Main features of e-way bill
- The e-way bill is an electronically generated document.
- Under this system, registeration of goods prior to e-way bill generation, is necessary.
- Every transporter will have to carry a mandatory system-generated e-way bill to move goods from one place to another.
- The e-way bill system has been introduced to bring uniformity across the states for seamless inter-state movement of goods.
- Under the GST, it is mandatory to generate e-way bill for interstate transportation of goods beyond 10 kilometres with a value of 50,000 rupees and above.
- Currently it is made mandatory for the movement of goods from one state to another, but if a state wants it can also implement this system within the state. By the way, the e-bill system will also be made mandatory within the state from June 1, 2018.
- The e-way bill generated for up to 100 km. will be valid for one day, whereas for 200 km. this will be valid for two days. This way the sequence will continue.
- If there is no movement of goods on the same day, the e-way bill can be canceled within 24 hours. Not only this, if the mode of transport is changed, the second e-way bill have to be generated. Apart from this, if goods are is returned to by the recipient, the second e-way bill needs to be generated.
- According to the GST network, the e-bill will be valid throughout India and the transporters will not need to go to any tax office or check post.
- e-way bill is not mandatory for goods like fruits, vegetables, fishes, water and non-non-motorised conveyance.
- e-way bill can be canceled within 24 hours from the time of creation.
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