The Indian government is considering numerous ways to get traders to issue bills to their consumers to check evasion of goods and services tax (GST). One of these ways includes obtaining bills using a centralized system that comes with invoice numbers given in advance. A trader can seek a host of numbers and bills that will be given to him. When a sales transaction takes place, the trader has the option to use these bills. In case of a cancellation, the bill’s serial number can be sent using a centralized system.
The Government has also decided to set up an official committee whose purpose will be to examine various options, including issuing a pre-designate bill number. One can obtain bills periodically. This latest move is a means through which the government takes efforts to clamp down on rampant tax evasion. It is common for shopkeepers to be reluctant when issuing bills and instead demand cash payments.
With the government exploring many options like offering a discount when it comes to GST on one’s card payments, the government is also hoping that invoice matching, the reintroduction of reverse change, and e-way bills will help prevent the evasion of the current tax regime., in particular, serve as a mechanism to ensure that any goods being transported comply with the Indian GST Law, thereby being a useful means of tracking the movement of goods and checking tax evasion.
Knowing how an E-way bill operates is incredibly vital for most businesses since they commonly deal in the movement of goods from one location to the other. In general, the government’s plans to make use of bills as a means of clamping down on tax evasion is as follows:
- Log onto a website or send a message that asks for a certain number of bills.
- The governmental committee organized to ensure bills will issue the bills as requested.
- The bills will be labeled according to a serial number. Additionally, they may also have their own period of validity.
- In case a bill is canceled, the number will need to be communicated with one’s registry.
- Any bills that are issued before that number will need to be deemed to be still in use.
According to the Finance Ministry of India, when it comes to E-way bills, in particular, the bill’s validity can start from the day a transporter chooses to file the second part of the bill. The mechanism to track the movement of goods whose worth exceeds ₹50,000 interstate concerning GST was rolled out from midnight. Since the transporter might begin the movement of goods quickly after being handed over the consignment, the clarification will assume significance. Transporters and suppliers must also ensure they avoid errors by checking an .
Provisions regarding the e-way bill operate intending to do away with any ills that currently affect the bill systems that prevail under VAT in multiple states. These ills tend to become a huge contributor to the bottlenecks that occur and check posts where goods are being transported. Since different states prescribed different e-way bill rules, this has made compliance difficult.
Hence, the e-way bill provisions as per GST aim to bring in an e-way bill rule applied uniformly throughout the country. The long term goal is that the physical interface will pave the way for digital interface and ultimately facilitate a faster movement of goods. Issuance of e-way bills is also bound to speed up the turnaround time of vehicles and, therefore, support the logistics industry by reducing travel time, costs and increasing average travel distances.
Learning how the government plans to roll out policies regarding the issuance of different bill systems across the country is important for business owners. You can learn more about the E-way bill on Finserv MARKETS. In addition to this, you can also apply for a business loan on Finserv MARKETS that currently offer collateral free loans up to Rs. 30 Lakhs. What’s more, when you apply on Finserv MARKETS, your application is processed instantly and requires minimal documentation.