GST: E-way bill system to be implemented from Feb 1

States had also been given the option to exempt movement of goods within 10 km radius: Official

The goods and services tax (GST) provision requiring transporters to carry an electronic way bill or e-way bill when moving goods between states will be implemented from February 1, to check evasion and boost revenue by up to 20 per cent.

After GST implementation from July 1, the requirement was postponed due to an unready network. This was done even in the 17 states which in the pre-GST era had an established electronic challan or e-way bill system, a top official said.

Once the e-way bill system is implemented, tax avoidance would become difficult, as the government would have details of all goods in transit above the value of Rs 50,000 and could spot a mismatch if either supplier or purchaser does not file tax returns, he said.

The e-way bill for inter-state movement will be implemented from February 1 and for intra-state movement from June 1. The official said states had been given the option of choosing when they want to implement the intra-state e-way bill between February 1 and June 1.

States had also been given the option to exempt movement of goods within 10 km radius, he said, adding all essential goods have been exempted from the requirement of carrying e-way bill.

Besides plugging tax evasion, the e-way bill will boost revenues by 15-20 per cent, he said. "The experience of states which had e-way bill system in pre-GST era showed a 15-20 per cent rise in revenue," he said.

The official said a pilot of e-way bill has been successfully run in Karnataka and the IT system is fully geared to meet any requirement. E-way bill is an electronic way bill for movement of goods which can be generated on the GSTN (common portal).

Movement of goods of more than Rs 50,000 in value cannot be made by a registered person without an e-way bill. The e-way bill can also be generated or cancelled through SMS, he said. When an e-way bill is generated, a unique e-way bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter, he added.