The authorities is working on a system to soon present a report to GST officers on a real-time foundation for these vehicles that are moving without e-way payments, to assist intercept caught vans at toll plazas and verify GST evasion.
The tax officers would additionally be offered evaluation stories on figuring out e-way invoice EWB with no motion of products as it might assist officers figuring out circumstances of round buying and selling. It would additionally present stories on recycling of e-way payments for tax evasion-prone commodities to assist officers in figuring out tax evaders.
Under the Goods and Services Tax (GST) regime, e-way payments have been made obligatory for inter-state transportation of products valued over Rs 50,000 from April 2018. However, gold is exempted.
In the digital approach (e-way) invoice system, companies and transporters have to produce earlier than a GST inspector the e-way invoice, if requested.
The authorities is now working on ‘Real-time and Analysis Reports on RFID’ for GST officers to assist them nab tax evaders who’re misusing the e-way invoice system.
In a report on ‘E-way Bill – A journey of three years, the federal government stated 180 crore e-way payments have been generated in three years until March 2021. Of this, solely 7 crore payments had been verified by tax officers.
In the 2020-21 fiscal, ended March 2021, 61.68 crore e-way payments had been generated, of which 2.27 crore was picked up for verification.
In the 2019-20 fiscal, ended March 2020, 62.88 crore e-way payments had been generated, of which 3.01 crore had been picked up for verification by tax officers.
The prime 5 states, which generated the utmost variety of e-way payments for inter-state motion of products had been generated are Gujarat, Maharashtra, Haryana, Tamil Nadu and Karnataka.
The prime 5 sectors the place most e-way payments had been generated prior to now three years are textiles, electrical equipment, equipment and mechanical home equipment, iron and metal, and vehicles.
With impact from January 1, 2021, the federal government has built-in RFID/FasTag with the e-way invoice system, and the transporter is required to have an RFID tag in his car, and particulars of the eway invoice generated for items being carried by the car is uploaded into the RFID.
When the car passes the RFID Tag reader on the freeway, the small print fed into the system get uploaded on the federal government portal. The info is later utilized by the income officers to validate the provides made by a GST-registered individual.
To enhance tax compliance, the federal government has additionally began blocking EWB Bill era if a GST registered taxpayer has not filed GSTR- 3B return for the final two successive months.
Also, the federal government has blocked the era of a number of EWBs on one bill. If the EWB is as soon as generated utilizing an bill quantity or doc quantity, then not one of the different events can generate one other EWB utilizing the identical bill quantity.
Besides, the e-way invoice’s system has enabled auto calculation of distance primarily based on PIN codes. The system will auto calculate the space between the supply and vacation spot, primarily based on PIN codes.
For the long run, the federal government will even present a real-time report on car motion for the chosen e-way payments to helps officers in realizing the path of motion by the car.
Also, real-time report on vehicles moving without e-Way payments for a specific toll plaza would be made out there to officers to assist them intercept solely these vehicles which aren’t having e-waybills
Also, evaluation stories on figuring out EWB with no motion of products would be given to help officers in figuring out circumstances of invoice buying and selling and round buying and selling. Analysis stories on the recycling of EWB for tax evasion-prone commodities would assist in figuring out tax-evading taxpayers.
AMRG & Associates Senior Partner Rajat Mohan stated, “With enhancements in GSTN & NIC systems, the efficacy of point-to-point tracking is getting water-tight. At this pace, taxpayers will soon witness real-time monitoring of goods. Transportation sector may have real-time tracking technologies in place in the next 3- 5 years, whereby tax leakage will practically become impossible.”
EY Tax Partner Abhishek Jain stated the three-year report on e-way invoice highlights the long run options to be launched within the NIC portal which can additional assist authorities and companies in straightforward monitoring of the motion of products.Â
