Upcoming Webinar: Analyse the security landscape of digital payments at 11 am on October 20. Register now!
Last Updated : Jun 20, 2017 04:35 PM IST | Source: Moneycontrol.com

As GST Council fails to reach consensus on e-way bill, state border checks may continue

State entry provisions such as e-Sugam in Karnataka and e-Suvidha in Uttar Pradesh might remain in the Goods and Services Tax (GST) regime for a while.

State entry provisions such as e-Sugam in Karnataka and e-Suvidha in Uttar Pradesh are likely to remain in the Goods and Services Tax (GST) regime as the Council was unable to reach a consensus on the e-way bill at its Sunday meet.

Finance Minister Arun Jaitley, however, said an alternative system will be worked out to accommodate states' existing procedures under the GST regime.

GST was initiated to facilitate smooth and easy flow of goods within the country. Under the existing system, though, interstate movement of goods is tracked. This essentially means a vehicle entering/exiting a state such a Karnataka has to fill out a form on e-Sugam and collect a challan and invoice. This is to help the authorities keep track of stocks with dealers and in case a dealer avoids paying the value added tax (VAT) on the stock, the authorities can trace it.


The Central Board of Excise and Customs drafted rules for the e-way Bill, which focused on how registered users should share information on their inter and/or intrastate consignment worth more than Rs 50,000 on the Goods and Services Tax Network (GSTN) website.

The GSTN will produce e-way bills valid for 1-15 days. The validity of the bills will depend on the travel distance. A one day validity will be given for a 100 km distance and 15 days for more than a 1,000 km transit. Till date, no such system or threshold has been followed.

The person transporting the goods will have to carry the bill of supply or the delivery challan, a copy of the e-way bill or the e-way bill number. This can be either carried physically or mapped to a radio frequency identification device on the conveyance.

The officer will only be required to verify the e-way bill or the number in physical form for all interstate and intrastate movement and give a summary report of the goods' inspection in 24 hours.

However, the state-entry provisions in GST will continue to exclude those which involve only VAT and entry tax. For example, Maharashtra takes VAT as entry tax for marbles, granite and tiles, which will not be considered from July 1.

Experts say that an e-way bill is not required and the movement of goods' can be tracked on the GSTN. However, many states opted for the e-way bill so that there no occurence of tax evasion.
First Published on Jun 20, 2017 04:34 pm