Question

Q3. Consider the following statements about E-way bill:

1. It is an electronic documentation detailing the movement of goods and has to be carried by 2. transporters for any consignment exceeding Rs50,000 in value.

2. It will be made compulsory for the moving goods within a state.

Which of the statements are correct?

• A. a) 1 only
• B. b) 2 only
• C. c) Both 1 and 2
• D. d) None of the above

Answer 1

The correct option is C

c) Both 1 and 2

E-Way Bill

• It is an electronic documentation detailing the movement of goods and has to be carried by transporters for any consignment exceeding Rs50,000 in value.
• It can be generated from the GSTN set up for the e-way bill system by the transporter before the movement of goods begins.
• The e-way bill’s validity varies depending on the distance that the goods have to travel. Typically, the bill’s validity is one day for every 100km of movement of goods.

If validity of the E-Way bill expires, the goods are not supposed to be moved.

However, one can extend the validity of the E-Way bill if the consignment is not reaching the destination within the validity period due to exceptional circumstances such as natural calamity, law and order issues, trans-shipment delay, accident of conveyance, etc.

Is it mandatory for all movement of goods?

• The GST e-way bill is mandatory from 1 April for all inter-state transport of goods valued above Rs50,000.
• It will be made compulsory for the moving goods within a state in a phased manner from 15 April.
• Some goods that are out of the e-way bill’s ambit include perishable items such as meat, milk and milk products and fruits and vegetables.
• Other items that don’t need an e-way bill are gold and silver jewellery, cooking gas cylinders, raw silk, wool and handlooms.

Why is it important?

• The e-way bill is a key anti-tax evasion measure and is a crucial part of the GST architecture.
• Tax authorities believe its implementation will dissuade tax evaders from underreporting transactions.
• It will also check instances where the entire transaction is not recorded due to connivance between the seller and buyer.
• It will provide a boost to GST revenues, which have stabilized around Rs85,000-90,000 crore. The government is hoping that this anti-evasion measure will bring buoyancy.