To crack down Goods & Services Tax (GST) evasion, the Finance Ministry of India has introduced the e-way bill system. The E-way bill is an electronic document to be created online under Goods & Services Tax system when the value of the goods of more than Rs.50,000 is shipped. However, failure to generate an e-way bill can lead to a penalty of Rs 10,000 or amount of tax required to be evaded whichever is higher.
The changes include auto calculation of distance depending on PIN codes for generating an e-way bill and limiting the generation of multiple bills on a single invoice, as it seeks to crack down on GST evaders. The user can include the real distance based on the movement of goods that are limited to 10% more than the auto-calculated distance shown. The E-way bill system required to be raised before the specific goods are shipped and must consist of goods details, their recipient, consignor, and transporter. The transporter needs to carry the copy of E-way bill and the invoices as document support for the goods movement.
Moreover, the government has decided not to allow the generation of manifold e-way bills depending on the invoices. This means, in case the e-way bill is generated once with a specific invoice number, then none of the parties like consignee, consignor, or transporter can generate another e-way bill with the same invoice number. With examples of misconducts in e-way bill generation, the revenue department decided to revise the system for e-way bill generation by business and transporters. The improved feature would allow extension of e-way bill validity when the goods are in movement/transit.
The e-way bill portal, developed by the National Informatics Centre (NIC), the country's premier informatics services organization, would generate a report for the users on the e-way bills list to expire. This would help the user to analyze the data and make certain that the goods reach the destination at the right time. From April-December 2018, 3,626 cases of GST violations/evasion were detected involving Rs 15,278 crore.
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