E-way bills or electronic invoices will be needed to move products between declares two several weeks sooner than organized as the top body of India’s new national sales tax experienced the need to plug loopholes to increase revenue.
E-way bills—generated on the Goods and Services Network portal— will be necessary from Feb. 1 for inter-state movement of goods, according to a statement released after a meeting of the GST Council organised via video-conference today. This will bring consistency and allow smooth inter-state transfer of goods.
The emergency with which the council is presenting the e-way bill system indicates that the lack of this electronic products activity product is being seen as one of the standards behind lower than predicted tax conformity and dropping per month GST revenue collections.
In Oct, the council said that the e-way bill system will be presented in a staggered way from Jan 2018 and will be rolled out nationwide from April to give enough time for companies to look at it. Now, it is necessary for inter-state movement from February, two months earlier.
An official statement from the GST Council said the e-way bill system will help in the smooth movement of products across state borders. It will be available on a trial basis for non-reflex adopting by businesses from Jan 16 allowing tax authorities to check cases of undervaluation of products.
To produce an e-way bill, the supplier and transporter will have to get in information the transport in the GSTN portal. This will create an original e-way bill number which will be sent to the supplier, transporter and the receiver.