Published: Sat, December 16, 2017
Business | By Max Garcia

GST Council firm on e-way Bill despite traders' concern

GST Council firm on e-way Bill despite traders' concern

"Till such time as national e-way bill is ready, states were authorized to continue their own separate e-way bill systems". In fact, soon after the tax was rolled out earlier this year, several trader organisations took to protests, including the textile traders of Surat. However, implementation of e-way Bill for intra-state movement will done in a staggered manner from February.

To generate an e-way bill, the supplier and transporter will have to enter details of the haul in the GSTN portal. But, in any case, the uniform system of e-way bill for inter-state as well as intra-state movement will be implemented across the country by 1 June 2018. The system for e-Way Bill will be available from January 15. States are reported to have raised concerns about tax evasion under GST in absence of a proper e-way bill system, resulting in the hurriedly called meeting which was earlier supposed to be held in January, two officials said.

For a seamless movement of goods across states, the Goods and Services Tax (GST) Council on Saturday chose to go for early implementation of e-Way Bill for inter-state movement of items from February 1 and uniform mandatory compliance from June one next year.

After healthy collections in the first three months, tax receipts in October had dipped by about 10% compared with September.

The GST Council will also be deliberating on reverse charge mechanism, ways to curb tax evasion, and also the restoration of SME supply chain. Also, October's GST revenue recorded a decline of Rs 12,000 crore from the Rs 95,131 crore collected for the preceding month. Once this system is in place, central and state tax authorities will be able to track the inter-state and intra-state movement of goods.

There are certain states which already have a system of e-way bill for intra-state as well as inter-state movement and some of those states can be early adopters of the national e- way bill system for intra-state movement also, it noted.

Muralidharan, senior director, Deloitte India, said that the national e-way bill system will help businesses as its procedure will be the same across the country.

Archit Gupta founder and CEO ClearTax said: "This will help transporters and sellers understand the requirements and prepare in advance. However, whether this would be disruptive for the industry or act as a stimulus for better movement of goods, would depend upon the E-Waybill Rules and the implementation of the same", he said.

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