Sensational changes in the E-way Bill system - introduction of features to prevent Tax evasion
Posted on: 26/Apr/2019 3:12:50 PM
Under the GST (Goods and Services Tax) system, the traders, when they send goods valued more than Rs.50000, E-way bill is mandatory (electronic check/clearance card). When transporting the goods, if the Tax Official demands, E-way bill must be shown.
However, even though e-way bill was introduced to prevent tax evasions, it has been found that there are plenty of malformations and tax evasions. During the last, it has been established that a tax evasion worth Rs. 15278 Crores in the 9 months from April to December last year.
3626 cases have been field in this regard. In order to prevent such GST evasions, the central ministry has introduced some changes in the E-way bill system.
As per this, goods transportation will be on the basis of PIN (Postal Index Number) code, the distance of transport will be taken on an empirical basis. The traders can register maximum of only 10% of the distance. For example, if the distance of transportation is 655 km, an additional 65 km only has to be registered. Accordingly, the E-way bill will be valid only for 720 km.
It is not possible for the trading company which sends the goods mad the trading company receiving their goods to create multiple E-way bills with a single list of goods sent, this sort of maloperations will also be prevented henceforth.
At the same time, provision had been to extend the transportation time in case of any delays. Further, there is a facility to access the expiry date of the E-way bill. With this, it is possible to confirm that the goods have been sent within the given time.
It is expected that the above changes will help the various tax evasion techniques in practice at present.
