Recently, E- bill was implemented to reduce the waiting time at the checkpoints by around 15 per cent and ease inter-state movement of goods. On this, the GST Council, the body that takes all the GST related decisions, has decided to dump the earlier system of three monthly GST returns and instead decided to overhaul the whole system.
One industry that will be affected the most is the construction industry, from which Saurabh Kashyap Senior VP, B L Kashyap & Sons Limited said, “After the implementation of GST, the government has finally announced the arrival of its next stage the transport E-Way bill from 1st April, 2018. The period given to all States for implementation is 1st June 2018, and post the rollout the Government should practically expect GST revenues to increase. Any material being transferred across state lines above the value of Rs 50,000/- would be covered by E-Way bills. We at B.L Kashyap believe the arrival of E-Way Bills would be beneficial across industries especially for any industry that relies on interstate trade and commerce. Logistics companies in the long term, post a successful rollout and adequate gestation period would be the biggest beneficiaries.
The EPC space should have a number of tangible and intangible benefits like most industries. One of the most direct benefits would be the closure of interstate forms for road permits like Form 32, JVAT-504G etc. to having a simple uniform easily generate-able E way bill. This would lower compliance requirements across Industries and in the future costs of both compliance’s and logistics. There would be efficiency in transportation of raw material and machinery across state lines because of the expected increase in the distances that would be covered by trucks, thanks to reasons like lower wait times at state borders. Though it is yet to be tangibly measured we at B.L Kashyap feel the E-Way bill could add value to our projects by reducing transit times of critical materials which in turn could potentially lead to better inventory management, and faster construction timelines.”
Steel being an important content of development of infrastructure as well as the country its industries inputs in the GST will play a major role. On this, bill Nikunj Turakhia, President of Steel Users Federation of India (SUFI), said; “SUFI welcomes implementation of e way bill for inter-state transactions from 1st April 2018. After failing to implement inter-state e- way bill on 1st feb 2018 due to software glitches, this time government has made sure that the server does not crash and runs seamlessly.
The introduction of e way bill is expected to plug any leakages in GST revenue and will further strengthen compliance as well as bring more of unorganized players to organized. However, multi destination and multi state transactions still remain cumbersome and needs to be simplified further. We are sure as we move forward GST regime will become more simpler and in the words of honorable Prime Minister will be truly GOOD and SIMPLE TAX. Let us hope for the best.”
Turakhia, was supported by Brijesh Lohia, Managing Director of Global Ocean Group who added, “With the relaunch of inter-state e-way bill from April 1, we hope that this time the process is smooth and quick. The February 1 launch turned out to be a fiasco as the system which was expected to handle a daily load of 6 lakh inter-state e-way bills per day crashed within the first hour. This time the government has assured that now the GSTN portal can handle 75 lakh inter-state bills a day. While we welcome this move but we want to see how disruptive this proves to be for the logistics companies.
Logistics industry has always been heavily dependent on the unorganised sector, and the e-way Bill is expected to transition this to organised sector. The transition might take time as the final form of the e-way bill is yet to take shape. The bill is also expected to improve logistics efficiency but many fear that in fact it will make the whole process cumbersome and costly. However, the real test lies in the proper implementation of the Bill, otherwise it will create more issues for us.”
As per reports, almost 25 states have removed those check posts so far, it has been going all right. This process is expected to further smoothen after e-way bill in GST that requires any goods more than Rs 50,000 in value to be pre- registered online before it can be moved is implemented. As per the reports, GSTN would generate e-way bills that will be valid for 1-20 days, depending on distance to be travelled — one day for 100 km, 3 days (100 to less than 300 km), 5 days (300-less than 500 km) and 10 days (500- less than 1,000 km).
E-way bill is a document that a person in charge of a conveyance carrying any consignment of goods of value exceeding Rs 50,000 is required to carry. It is a mandatory document that is generated from the GST Common Portal by registered persons or transporters who undertake movement of goods. The transporter will need to generate the e-way bill before the movement of goods commences.