Is The e-way bill system another inspector raj? #Way_BillJune 12, 2019
A little over one year has passed since the e-way bill system (an electronically generated document required for the movement of goods from one place to another) was mandated for inter-state movement of goods.
This e-way bill system is now in place even for intra-state movement.
BusinessLine spoke with a few tax and legal experts.
Pune-based chartered accountant and GST consultant Pritam Mahure explains that, generally speaking, GST-related formalities, e-way bills included, have increased the compliance burden on bonafide businesses, even as tax evasion continues.
Of the ₹48,555 crore of tax evasion detected (Central excise, sales tax and GST) in April-December 2018-19, there has been recovery worth ₹13,907 crore.
The number of cases detected in this period were 8917.
Mohan R Lavi, a Bengaluru-based chartered accountant says the removal of checkposts has smoothened goods movement, but mobile squads often charge a tax even on exempt items because they are not well informed.
It says: “Instances were brought to the notice of the Commissioner of Commercial Taxes where the Roving Squad officers are levying maximum penalty in a routine manner even for minor breaches of tax regulations…”
Physical verification of goods should not be carried out more than once in a single State, it says.
Abhishek Jain, Tax Partner, EY India says that the e-way bill system per se has been running quite smoothly and with time to time streamlining.
E-way bills are once again supposed to come into effect from April 1, after the botched effort to get started with inter-State transactions on budget day. Hopefully, the software backbone will be better equipped to handle the crush of businesspersons. E-way bills — a document opened by the consignor, consignee, and in some cases, the transporter, to accompany the transportation of goods in excess of ₹50,000 — are me…