Introduction
The Union Government has unveiled a significant system advancement with the E-Way Bill (EWB) now being directly integrated with FasTag and RFID. This change promises to streamline the movement of goods while improving compliance with the Goods and Services Tax (GST) regime and minimizing revenue leakage.
Understanding E-Way Bills
An E-Way Bill, or EWB, is essentially a unique number issued for a specific consignment involved in the movement of goods. Under the GST regime that came into effect in April 2018, EWBs became mandatory for inter-state transportation of goods valued over Rs. 50,000, excluding precious items like gold. The EWB serves as a tool to ensure goods being transported adhere to the GST Law, enable tracking of goods, and prevent tax evasion.
Fastag And Radio Frequency Identification (RFID) Explained
FASTag is a reloadable tag that automates the deduction of toll charges, thereby eliminating the need to stop for a cash transaction at toll booths. Utilizing RFID technology, FASTag gets attached to the windscreen of the vehicle and becomes active. RFID uses radio waves to capture data stored on tags attached to objects, and these tags can be read from several feet away without requiring direct line-of-sight. As of 15th February, 2021, the use of FASTag has been made compulsory for all vehicles across India and is operated by the National Highway Authority of India (NHAI).
Significance of Integration: Efficient Goods Movement
With an average of 25 lakh goods vehicles moving past more than 800 tolls daily, the integration of the EWB system with FASTag and RFID will serve to enhance efficiency. This system reports vehicle movements to the EWB platform in real time.
Real-Time Vigilance Through System Integration
The integration of the EWB, RFID, and FASTag allows for real-time vigilance concerning EWB compliance by businesses. Now, tax officers can readily access reports on vehicles that have passed specific tolls without e-way bills within minutes.
Preventing Revenue Leakage Through System Integration
Finally, this system integration is a significant step towards reducing revenue leakage. By identifying cases where EWBs are not generated or reused in real time, it can prevent loss of revenue for the government and improve compliance with the GST law.
By combining the functionalities of these three systems, the Union Government has made a significant stride in enhancing regulatory compliance, promoting transport efficiency, and safeguarding public revenues. This move is expected to significantly contribute to the smoother and more effective implementation of the GST regime across India.
