Free 600 words essay on Electronic-way bill or e-way bill – Positive Negative Effects for school and college students.
The Goods and Services Tax or GST was launched at the stroke of midnight on July 1, 2017 and is considered as the most comprehensive and transformational tax reform of India since independence from the British Raj. With a taxation reform of such scale and grandeur that had surpassed all political oppositions and scrutiny brought with itself several challenges. The complete overhaul of tax mechanism was slightly chaotic and had to rectified multiple times to avoid hassles to the traders. Initial glitches were addressed and the government is working relentlessly to add credibility to its big bang reform.
An additional component of the Goods and Services Tax is the Electronic-way bill or e-way bill that is for movement of goods which can be generated on the e-way Bill Portal. It is required to be generated for movement of goods worth more than Rs. 50,000. This electronic document is generated on the GST portal that evidences the movement of goods. Any registered person who moves a consignment worth Rs. 50,000 or more is supposed to furnish details of GSTIN of recipient, place of delivery, invoice or challan number and date, value of goods, HSN code, transport document number. He would also need to elaborate the reasons for transportation and transporter details.
The basic purpose of this mechanism is to ensure that goods being transported comply with the GST law and comes out as an effective tool to track movement of goods and check tax evasion. With the introduction of e-way bill, revenues would rise by Rs 2,250 crore every three months compared to the current GST run-rate of around Rs 85,000 crore each month. Even unregistered persons and other transporters are required to generate e-way bill. Through this, the government hopes to plug tax leakages, make supply chains smoother and cause businesses to flourish.
E-way bill is a is a unified and simple system which establishes direct linkage between what is declared and what is actually moved. The erstwhile system with multiplicity of forms, non-digital modes and cumbersome design has been done away with. In fact, the new system builds a momentum on Digital India. Smarter generation of bills would remove drudgery and make the systems more intuitive and speed up the documentation. And finally, the e-way bill system shall be transformational and contribute towards further innovation and improvement in the taxation and the logistics ecosystem. As a matter of fact, RIVIGO as a E-waybill Suvidha partner is working closely with the government to provide a high-quality e-waybill solution through a web and mobile application for trade, industry and transporters for easy and swift movement of goods across the country. There would be greater advantages with faster turnaround and optimal warehousing structure, thereby bringing manufacturers closer to markets. The entire gamut of improved logistics, easy compliance with the tax administration, transparent dealings and faster clearances would give a huge boost to the flagship programme ‘Make in India‘.
Issues have already begun to erupt with the introduction of e-way bill system. In fact, the e-way bill portal crashed after multiple technical glitches. It is considered as a complex digital document. The trail period has been extended given the constant errors. The confusion created delays in transportation. Some e-commerce firms even allege that it would create supply chain inefficiencies and delay in transit of goods. There is confusion regarding who would have the ultimate responsibility of generating e-way bills. Also, what would be the treatment of e-way bill for stock transfer- interstate or intrastate transfers. There are questions regarding validity of the e-way bill and if could be modified or deleted. Hundreds of such questions have been raised by traders and companies which the government would surely respond to. It is for the same reason that the trial period has been extended.