E-way bills under GST get mixed signals from Logistics players

Posted by Daily Shipping Times on 19-04-2017        Tweet

NEW DELHI: The proposed electronic way bill under the goods and services tax regime (GST) has evoked a mixed reaction from Logistics players, who expect challenges in operationalising it in its present form in the short run. However, they agree that ultimately this would lead to easier funds flow.

The Central Board of Excise and Customs (CBEC) put out a proposal on e-way bill, as a part of easing inter-State traffic movement under the GST regime.

“The proposed e-way bill in the GST regime will put an additional layer of documentation by way of prior online registration of the consignment for transporting shipments exceeding Rs. 50,000. The objective of the GST is to bring a lot of Ease in Doing Business.

“However, the requirement of securing e-way bill for inspection by GST officials in transit seems a dilution, as this is likely to lead to interception of vehicles in all inter-State and intra-State movement of goods,” said Mr. K Satyanarayana, Co-founder and Director, Ecom Express Private Ltd.

Ecom Express said that unforeseen circumstances leading to transfer of goods from one vehicle to another may nullify the earlier e-way bill and transporters would have to create a new e-way bill on the GSTN portal before moving ahead.

In case of third party logistics providers, for consignment value exceeding Rs. 50,000, the sender as well as the transporter will have to upload details to generate an e-way bill, Satyanarayana added.

Furthermore, Ecom Express had concerns on the rigid timelines regarding e-way bills as emergencies can arise in the course of transport, triggering delays in transit beyond the specified number of days leading to tracking etc.

The unorganised nature of the logistics sector will make it difficult for players to adopt electronic-way bills, as proposed by CBEC, as the Country readies to migrate to the GST regime, Mr. Mayur Gandhi, CFO, DB Schenker Logistics, said recently.

“There will be less manual intervention leading to less errors and much clearer documentation. Also, there will be challenges as the sector is unorganised. E-way bill, which is in proposal form, should be implemented after two years as that would be the time taken after GST,” he said.

But some aspects of the e-way bill were welcomed.

Mr. Chander Agarwal, Managing Director, TCIEXPRESS, said the provision will benefit the Government and transporters.

“While it allows Government to keep a tab on the movement of goods to be transported, it will also allow transporters to file a complaint if the vehicle is detained for a period exceeding 30 minutes. The e-way bill portal allows the transporter, supplier and the recipient to be on a single platform through which tracking of goods will be enabled through Radio Frequency Identification,” Agarwal said.