The tax officers would additionally be offered evaluation experiences on figuring out e-way invoice EWB with no motion of products as it will assist officers figuring out circumstances of round buying and selling. It would additionally present experiences on recycling of e-way payments for tax evasion inclined commodities to assist officers in figuring out tax evaders.
Under the Goods and Services Tax (GST) regime, e-way payments have been made necessary for inter-state transportation of products valued over ₹50,000 from April 2018. However, gold is exempted.
In the digital approach (e-way) invoice system, companies and transporters have to produce earlier than a GST inspector the e-way invoice, if requested.
The authorities is now working on a ‘Real-time and Analysis Reports on RFID’ for GST officers to assist them nab tax evaders who’re misusing the e-way invoice system.
In a report on ‘E-way Bill – A journey of three years’, the federal government mentioned 180 crore e-way payments have been generated in three years until March 2021. Of this, solely 7 crore payments had been verified by tax officers.
In the 2020-21 fiscal, ended March, 2021, 61.68 crore e-way payments had been generated, of which 2.27 crore was picked up for verification.
In 2019-20 fiscal, ended March 2020, 62.88 crore e-way payments had been generated, of which 3.01 crore had been picked up for verification by tax officers.
The prime 5 states, which generated most variety of e-way invoice for inter-state motion of products had been generated are Gujarat, Maharashtra, Haryana, Tamil Nadu and Karnataka.
The prime 5 sectors the place most e-way payments had been generated up to now three years are textiles, electrical equipment, equipment and mechanical home equipment, iron and metal, and cars.
With impact from Janaury 1, 2021, the federal government has built-in RFID/FasTag with the e-way invoice system and a transporter is required to have a RFID tag in his automobile and particulars of the eway invoice generated for items being carried by the automobile is uploaded into the RFID.
When the automobile passes the RFID Tag reader on the freeway, the small print fed into the system will get uploaded on the federal government portal. The data is later utilized by the income officers to validate the provides made by a GST-registered particular person.
To enhance tax compliance, the federal government has additionally began blocking of EWB Bill technology if a GST registered taxpayer has not filed GSTR- 3B return for the final two successive months.
Also, the federal government has blocked the technology of a number of EWBs on one bill. If the EWB is as soon as generated utilizing an bill quantity or doc quantity, then not one of the different events can generate one other EWB utilizing the identical bill quantity.
Besides, the e-way payments system has enabled auto calculation of distance primarily based on PIN codes. The system will auto calculate the gap between the supply and vacation spot, primarily based on PIN codes.
For the long run, the federal government may even present a real-time report on automobile motion for chosen e-way invoice to helps officers in realizing the path of motion by the automobile.
Also, real-time report on vehicles moving without e-Way payments for a specific toll plaza would be made out there to officers to assist them intercept solely these vehicles which aren’t having e-waybills
Also evaluation experiences on figuring out EWB with no motion of products would be given to help officers in figuring out circumstances of invoice buying and selling and round buying and selling. Analysis experiences on recycling of EWB for tax evasion inclined commodities would assist in figuring out tax evading taxpayers.
AMRG & Associates Senior Partner Rajat Mohan mentioned, “With enhancements in GSTN & NIC techniques, the efficacy of point-to-point monitoring is getting water-tight. At this tempo, taxpayers will soon witness real-time monitoring of products. Transportation sector might have real-time monitoring applied sciences in place within the subsequent 3- 5 years, whereby tax leakage will virtually turn into inconceivable.”
EY Tax Partner Abhishek Jain mentioned the three-year report on e-way invoice highlights the long run options to be launched within the NIC portal which is able to additional assist authorities and companies in simple monitoring of transfer of products.