HYDERABAD: The e-way billing system under the Goods and Service Tax (GST) regime kicks in on February 1 for the transport sector across India. The validity of an e-way bill is based on the distance travelled by the goods or in other words, kilometres travelled by the trucks. But truck owners in Telangana say the chances of them completing a trip within the validity period of e-way bill is low and are seeking an extension of the validity. Concerns are also being raised by traders who are wary about possible fines and added costs arising due to unpreparedness and compliance.
For less than 100 kilometres, the e-way bill validity will be for one day and then on for every additional 100 kilometres, another one day is added to the validity. A 2013 report by Ernst & Young and Retailers Association of India (RAI) found that the average speed of an Indian truck is 20-40 kilometre/hour, and the average distance covered daily is just 250-400 kilometre.
“The e-way bill validity will expire as at most times there are delays of one or two days while doing a trip. It’s true that tax officials have removed a lot of checkpoints but there still is a lot of checking being done for GST compliance by the trader whose goods we transport. These checks are random and if there is an issue we either have to pay a bribe or wait for the trader to pay up the fine or provide necessary documentation.
This can take a day. By then the validity of the e-way bill will be over,” said Bhaskar Reddy Nukala, president, Telangana Lorry Owners Association. “We have requested the tax officials to extend the validity period,” he added.
E-way bills are to be generated for the transportation of goods above the value of `50,000. The bill replaces the Value Added Tax (VAT) era system that posed delays in goods transport and paved way for corruption. The introduction of e-way bill was delayed as the GST-Network portal was not ready at the time of the tax roll out.
The rules are to be rolled on a trial basis from January 16, 2018 and will be implemented from February 1. So far 17 states have adopted the rollout, Telangana being one of them.
“The system is internet dependent for RFID technology and electronic documentation to work, at most state borders there is little or no internet connectivity and we have to wait and troubleshoot issues that arise one by one.”
“The drivers need training to understand how the system work,” said Suresh K, manager at LT logistics and transport.
Traders too are unsure about how the system will pan out. “If the bill expires, will I have to generate another e-way bill number (EBN) under the same invoice?” asked Mohammad Farooqi, owner, Karachi textiles, Ghansi Bazaar.