With the launch of the nationwide e-way bill system, businesses were expecting uniform rules across all states. It was assumed that the challenges prevalent in the erstwhile regime would not be faced in the GST regime. However, some states have notified parallel rules and procedures for e-way bill generation. A few examples are discussed below.
Threshold for intra-state movement of goods
|Applicability for certain prescribed goods||
Further, separate guidelines are being issued by each state for e-way bill verification in the course of movement of goods. Recently, the Assam government issued guidelines on the functioning of ‘mobile squads’ that will conduct random checks on vehicles. In the near future, it is expected that other states may follow suit and issue similar amendments/guidelines.
With the above structure, businesses primarily have two options for e-way bill generation and compliances:
Option 1: Generate an e-way bill for each and every movement of goods in all states irrespective of the value, nature of the goods and state-wise notifications. While this would minimise the complexities involved in keeping a track of state-wise updates and safeguard businesses from being non-compliant, the cost of compliances will increase considerably.
Option 2: Keep a track of various updates issued by states in respect of e-way bills and generate the same accordingly. However, keeping track of such updates is a challenging task and, in many cases, the state websites are not updated in a timely manner.
In summary, in order to meet the primary objective of a uniform nationwide e-way bill system, the GST Council should recommend that states implement consistent e-way bill rules.
Partner and Leader, Indirect Tax, PwC India
Tel: +91 124 3306507
Partner and Deputy Leader, Indirect Tax, PwC India
Tel: +91 22 6689 1455