Tax officers’ e-way bill mobile application now has additional features that will provide them with real-time tracking details of eway bill rules and vehicles, allowing them to catch tax evaders who are abusing the e-way bill system.
E-way bills have been made necessary for inter-state transportation of products valued over Rs 50,000 under the goods and services tax (GST) regime since April 2018. Gold, on the other hand, is exempt. Businesses and carriers who use the e-way bill system must present the e-way bill if asked by a GST inspector.
The Impact of Integration
The integration of e-way bills, RFID, and FasTag will allow tax officials to conduct real-time vigilance on e-way bill compliance by enterprises. It is also possible to see cars carrying vital commodities unique to the state that have passed the set toll. This report also shows any suspect vehicles and vehicles of EWBs created by suspicious taxpayer GSTINs that have passed the designated toll in near real time.
Online real-time tracking of vehicles and products will go a long way in tightening the lid on tax evaders. This smartphone application for tax officers would allow them to track down all of the parties involved in smuggling products. CBIC had previously expressed its intention to further digitise the process of enforcing the e-way bill provisions under the GST law, and in line with this idea, the e-way bill system has now been integrated with the FasTag and RFID systems, and MIS reports from the same will be made available on the officer’s mobile app.
Further Key Takeaways
This is a good effort on the side of the government, and it demonstrates how the government is proactive in utilising technology to ensure tax compliance and identify fraudulent operations. The government stated last month in a paper titled “E-way Bill – A Three-Year Journey” that 180 crore e-way bills have been generated in three years to March 2021. Only 7 crore of these bills were validated by tax officials.
Textiles, electrical machinery, machinery and mechanical appliances, iron and steel, and autos are the top five industries that have generated the most e-way bills in the last three years.
The details fed into the device are uploaded to the government portal as the car passes the RFID Tag reader on the highway. Revenue officials then use the information to verify the supplies made by a GST registered person. To increase tax compliance, the government has begun prohibiting the generation of EWB bills if a GST registered taxpayer has not filed a GSTR-3B return for the previous two months.
In addition, the government has made it impossible to generate numerous EWBs on a single invoice. If an EWB is generated once with an invoice number or document number, no one else can generate another EWB with the same invoice number. Furthermore, the e-way billing system now allows for distance calculation based on PIN numbers. Based on PIN numbers, the system will automatically compute the distance between the source and destination.
If you want to learn more about the same, you can head over to Finserv MARKETS. Here, you will also find a wide range of financial products to suit all of your financial needs!