Govt pins hopes from e-way bills; to improve GST collections; heres how it’ll work
Even as the GST implementation has been criticized for hampering businesses, the government expects goods and services tax (GST) collections to rise by anywhere 20-25 per cent after the introduction of electronic way (e-way) bills.
It need be mentioned that e-way bills will track the movement of consignments across trucks and help check revenue leakage.
Tax officials believe some businesses are on a tax holiday since the introduction of GST. That’s because under GST, partial evasion is almost impossible. You pay either 0 per cent or 100 per cent.
Already, 17 states have e-way bills in some form, which includes Uttar Pradesh, Uttarakhand and several eastern states.
But there are 14 others including Maharashtra and Madhya Pradesh, which will move to the new regime from February 2018.
Some of the states that already have e-way bills track movement of goods within as well as outside the state. While e-way bill was to kick in with the launch of GST in July, the government had deferred the rollout till the system was in place.
The new nationwide e-way bill system will be ready from January 1 and companies can start generating the electronic tracking tool from January 15 and it will be compulsory from February 1 with the intra-state bills becoming mandatory from June. This will do away with the state-to-state variations in e-way bills. >