GST E-way Bill Integration with NHAI’s FASTag and LBD

The Indian government introduced E-way Bill on April 2018 for more transparency in tax transactions of transferring goods from one place to another. Now, in November 2018, for better outcomes, another decision has been taken by the revenue department to integrate E-way bill system with NHAI’s FASTag mechanism to track movement of goods and keep a check on tax evasion. What are the reasons behind this decision, who will get affected and how would it be helpful, there are numerous questions lurking in everyone’s mind. If you too want all the answers, then keep on reading this space.

Why government is planning to link GST e-way bill with NHAI’s FASTag and LBD?

“It has come to our notice that some transporters are doing multiple trips by generating a single e-way bill. Integration of e-way bill with FASTag would help find the location of the vehicle and when and how many times it has crossed NHAI’s toll plazas,” the official said.

The other reason is to get a secured place in the top 50 clubs of global rankings in ease of doing business. However, this can’t ever be possible if the entire country transportation is put together. If we look at the current scenario, then ‘Track and Trace’ mechanism lacks common laws regarding information sharing, which is itself a big loophole. Plus, high and imbalanced logistic costs are another reason that impacts tremendously on ease of doing business. So, all these factors are the reason for this decision. E-way linking will result in making this happen and boost the ease of doing business.

What would be its benefits?

The agenda behind integrating of E-way bill with NHAI’s FASTag is to check the GST evasion by unscrupulous traders and bring a stop on these adverse practices, plus this integration will aid to the quick movement of goods. This will also assist the respective authorities to keep a track on each movement of vehicles, which will further facilitate that vehicles are going to the same destination just as mentioned in E-way Bill while generating it. Not just the governmental authorities, but its purpose is useful for suppliers as well. They can now locate their goods in transit via this system. It will also improve logistics ecosystem.

“The integration of the e-way bill system with FASTag and LDB (Logistics Data Bank) is expected to help boost tax collections by clamping down on trade that currently happens on cash basis,” the official said.

So, overall this integration will lead to these benefits:

• All loopholes regarding tax evasion will get eliminated.
• A proven check on GST tax evasion by unscrupulous traders.
• Give a reliable way to track the goods in transit through efficient SMS alert scheme at every toll plaza.
• Ease of performing business multiplies automatically.
• Help boost tax collections

Well, there are innumerable privileges for government and common people if this e-way bill system with FASTag and LDB will get implemented properly. However, for its approval inter-ministerial coordination is a prerequisite. This collaboration is a must as the integration will lead to innumerable technical and operational challenges. This will surely be a check on tax evasion and will prove a great step towards transparency and ease of doing business.