Transit gambit: on e-way bill mechanism for transport of goods 

Transit gambit: on e-way bill mechanism for transport of goods 

Context

The Centre needs to do more to ease the shift to e-way bills for transport of goods

The Centre needs to do more to ease the shift to e-way bills for transport of goods

Already grappling with the Goods and Services Tax transition, businesses are now anxious about how the roll-out of e-way bills will pan out

E-way Bill System

• Starting February 1, all inter-State movement of goods worth over ₹50,000 will be tracked with the introduction of the e-way bill system under the GST regime
• All consignments moving more than 10 km from their origin will require prior registration and generation of an e-way bill through the GST Network, which will be valid for varying durations depending on the distance travelled
• While a few States have already imposed their own requirements for such bills since the GST roll-out in July, all States must implement the bill system for capturing intra-State trade by June 1

Conditions to implement

• Therefore, a fully integrated tracking system for all taxable goods can be expected only then. This poses an interim headache for firms operating across States, as they will now face differing compliance requirements for inter-State trade and intra-State trade, depending on when individual States launch their own e-way bill systems
• To be fair, inter-State movement of goods was also tracked under the VAT (value-added tax) regime, but intra-State transactions were not. Over 150 items of common use, including LPG cylinders, vegetables, foodgrain and jewellery, will be exempt from such transport permits, which can be checked by designated tax officials by intercepting a transporting vehicle
• Goods moved on non-motorised conveyance, such as carts, have been left out.