Context:
Recently, Freight operation information system of the Indian Railways has been integrated with the E-Way Bill (EWB) system of the Goods and Services Tax (GST).
E-Way Bill:
- An electronic permit required for inter-state and intra-state transportation of goods worth more than ₹50,000.
- Contains details of the goods, consignor, recipient, and transporter.
- Generated electronically through the Goods and Services Tax Network (GSTN).
- Allocates a unique E-way Bill Number (EBN) to the supplier, recipient, and transporter.
- Working –
- Must be raised before shipping goods, including details of the goods, consignor, recipient, and transporter. Consignments can be intercepted for verification of the E-way bill during inter-state and intra-state movement.
- Penalty for not having an E-way bill: ₹10,000 or the tax sought to be evaded, whichever is greater.
- Validity – Varies based on the distance to be traveled.
- Typically, one day for every 100 km of movement.
- Exclusions – Perishable items (meat, milk, milk products, fruits, vegetables), gold and silver jewelry, cooking gas cylinders, raw silk, wool, and handlooms.
- Who Should Generate an E-Way Bill:
- Registered Person: Required for movement of goods worth more than ₹50,000. Can be generated even if the value is less than ₹50,000.
- Unregistered Persons: Required to generate an E-way bill. However, if supplying to a registered person, the receiver ensures compliance.
- Transporter: Must generate an E-way bill if the supplier has not done so, for goods transported by road, air, rail, etc
Read more about Goods and Services Tax (GST)
Source: ET
Previous Year Question
The sales tax you pay while purchasing a toothpaste is:
[UPSC Civil Service Exam – 2014 Prelims]
(a) tax imposed by the Central Government
(b) tax imposed by the Central Government but collected by the State Government
(c) tax imposed by the State Government but collected by Central Government
(d) tax imposed and collected by State Government
Answer: (d)