Government Hungry for Funds! Now Attacks the Crippled Logistic Sector

Tax officers will be authorized to scourge another pandemic hit the sector.

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Government Hungry for Funds! Now Attacks the Crippled Logistic Sector the policy times

The government preparing to extract more finances from the already crippled logistic sector. It will provide a report to GST officers on a real-time basis for those vehicles which are moving without e-way bills, to help intercept stuck trucks at toll plazas and check GST evasion. The tax officers would also be provided analysis reports on identifying e-way bill EWB with no movement of goods as it would help officials identifying cases of circular trading.

The history of the E-way Bill

In 2018, excluding gold, all items were mandatory for inter-state transportation of goods valued over Rs 50,000. The businesses and transporters have to produce before a GST inspector the e-way bill.  In the 2019-20 fiscal, ended March 2020, 62.88 crore e-way bills were generated, of which 3.01 crore were picked up for verification by tax officers. In the 2019-20 fiscal, ended March 2020, 62.88 crore e-way bills were generated, of which 3.01 crore were picked up for verification by tax officers.  The top five states, which generated the maximum number of e-way bills for inter-state movement of goods were generated are Gujarat, Maharashtra, Haryana, Tamil Nadu, and Karnataka. The sectors that produced maximum e-way bill until the outbreak were textiles, electrical machinery, machinery and mechanical appliances, iron and steel, and automobiles.

Also Read: FM Introduced 2 New Bills and How Will They Affect You!

What changed in 2021?

With effect from January 1, 2021, the government has integrated RFID/FasTag with the e-way bill system, and the transporter is required to have an RFID tag in his vehicle, and details of the e-way bill generated for goods being carried by the vehicle is uploaded into the RFID. When the vehicle passes the RFID Tag reader on the highway, the details fed into the device get uploaded on the government portal, which is used by revenue officials to validate the supplies.

TPT Policy Advocacy and Recommendations.

  • With India still under the developing stage, digitization of the toll bills will be challenging to implement with the low internet penetrations across the country. Moreover, the IRP does not support the archive option. As per the rules, the IRP does not store invoices for more than 24 hours. The government should work on this issue primarily as the loss of data will cause a negative impact on the logistics data.
  • The nation is registering an exponential rise in its COVID count and health care sector on the edge, instead of implementing means to extract money from the citizens the government should focus on supporting the public economically and socially.
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Government Hungry for Funds! Now Attacks the Crippled Logistic Sector
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Tax officers will be authorized to scourge another pandemic hit the sector.
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THE POLICY TIMES
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