India is one of the fastest-growing economies of the world and the Indian government intends to capitalize on it to make India a global economic superpower. However, there are several challenges which the country faces in each of its economic sectors. From dealing with willful tax defaulters to uprooting corruption at the ground level, the government strives hard to find solutions to each of the specific problems. The GST introduced in 2017 proved to be very effective in dealing with such problems and also helped the logistics industry significantly.
The logistics of moving goods from one point to another was very complex prior to GST which reduced India’s business potential significantly. Long queues in checkpoints across the country were a common scene in India and different tax slabs in different states proved to be very problematic. The Electronic Waybill (E-Way bill) under the GST system changed all that.
What is the e-way bill?
The E-Way bill is a tax compliance system introduced under the GST regime. It is basically a document that a person is required to carry when transporting goods over RS 50,000. It is a mandatory document and needs to be generated before the movement of goods even begins.
Impact of the E-Way bill:
Before the E-Way bill, the transport industry had to spend more than 50% of its time and valuable resources on tax compliance and associated activities. Moreover, the trucks had to waste a lot of valuable time (almost 20% of its runtime) in inter and intrastate checkpoints. After the introduction of the E-Way bill:
- The travel time of long haul trucks has been reduced by 20% and other trucks by at least 1/5th of the previous runtime.
- Monitoring the movement of goods was previously very difficult and the entire system was too complex and error-prone. However, after the introduction of the E-way bill, it became very simple and the government is easily able to crack down on tax evasion.
- Before the introduction of the E-way bill average Indian truck only covered 50,000 Km compared to 3Lakh Km in the USA. Now the situation is all set to improve as the Indian trucks will no longer have to wait in long queues.
- The interstate checkpoints also meant a lot of hassle for the trucks as the state transport and tax authorities frequently resorted to harassment. With the E-way bill, the checkpoints are virtually redundant thus providing no barrier to the smooth movement of goods.
Can the E-Way bill software platforms be helpful?
Although the E-Way bill offers a lot of solutions yet it does have its own problems. Manually preparing and generating E-Way bill itself can be a lot of hassle, especially when you have to do it for multiple consignments. You also need to take guard against errors and manage all that within minimum time. This is where E-Way bill software can be really helpful.
What does a good E-Way bill software offer?
- You can avoid errors.
- You can maintain records.
- Quick and hassle-free management.
- Maintain all data strategically.
- The entire task becomes very easy.