The e-way bill system shall be introduced to give trade and industry more time to acclimatize itself with the GST regime
Some of the changes announced by the Finance Minister with regard to GST regime on 6th may be welcomed by the small and medium enterprises but may not be to the liking of the players in the organised sector. For example, government’s decision to defer the introduction of e-way bill system till April 1st 2018 may be disappointing for building material manufacturers in the organised sector. The government in its release on 6th said “The e-way bill system shall be introduced in a staggered manner with effect from 01.01.2018 and shall be rolled out nationwide with effect from 01.04.2018. This is in order to give trade and industry more time to acclimatize itself with the GST regime”.
Cement producers were hoping that e-way bill system would be introduced from 1st October which would bring efficiency in their logistics infrastructure. Even though Octroi nakas at state borders have become a thing of past, still considerable time is wasted /spent for checking on weight, etc. which has prevented logistic cost going down substantially from pre-GST era. Cement manufacturers felt that situation would have improved substantially if e-way bill system was introduced immediately which would have done away with the checking on the weight, etc. on the borders.
Similarly, some plywood manufacturers in organised sector feel that in the absence of e-way bill system unorganized sector would be operating unhampered in the old style and with the checks at inter-state borders gone their operation would become much easier in post-GST era. Once the e-way bill system is introduced, illegal movement of goods (without paying tax) will be brought down substantially which will help the market to grow more systematically.
E-way bill is an electronic way bill for movement of goods which can be generated on the GSTN (common portal). The e-way bill rule applies to all of the registered individuals whose job involves movement of goods as consignment valuing over Rs. 50,000 need to provide in all the relevant details in Form GST INS-01 before the dispatch of the consignment. Delivery operators need to provide vehicle number and driver information in advance which makes the monitoring of goods movement much easier and less time consuming.