E-Way Bill – GST Authority Vs Judiciary: An Overview

Since its introduction in 2018, the implementation of E-Way Bill has been plagued by various issues. E-Way Bill is an electronic document that is required for the movement of goods worth over Rs. 50,000 between states. The basic idea behind the E-Way Bill system is to ensure that tax evasion is curbed and that the movement of goods is tracked effectively.

However, the implementation of the E-Way Bill system has been fraught with issues such as technical glitches, lack of awareness among businesses, and difficulties in generating and canceling E-Way Bills. As a result, both the GST Authority and the Judiciary have been at loggerheads over the implementation of the E-Way Bill system.

The Role of the GST Authority

The GST Authority is responsible for the implementation of the E-Way Bill system. It has introduced various measures such as simplification of the E-Way Bill generation process, extension of the validity of E-Way Bills, and facilitation of bulk generation of E-Way Bills, among others.

However, despite these measures, there have been several issues with the E-Way Bill system. For instance, businesses have complained of difficulties in generating and canceling E-Way Bills. There have also been instances of technical glitches that have caused delays in the movement of goods.

Additionally, there have been concerns raised about the validity of E-Way Bills. The GST Authority has extended the validity of E-Way Bills to 100 km per day of travel, but businesses have argued that this is not sufficient, especially for long-distance transportation of goods.

The Role of the Judiciary

The Judiciary has been involved in the implementation of the E-Way Bill system due to various legal challenges that have been raised against it. For instance, there have been challenges raised against the requirement of an E-Way Bill for the movement of goods within a state. The Judiciary has ruled that an E-Way Bill is not required for intrastate transportation of goods.

There have also been concerns raised about the detention of goods due to issues with the E-Way Bill. The Judiciary has ruled that goods cannot be detained for minor issues related to the E-Way Bill, and that detention can only be done if there is a suspected case of tax evasion.

In addition, there have been challenges raised against the validity of E-Way Bills. The Judiciary has ruled that the validity of E-Way Bills cannot be limited to a specific distance as this could cause hardships for businesses involved in long-distance transportation of goods.

The Way Forward

The conflict between the GST Authority and the Judiciary over the implementation of the E-Way Bill system needs to be resolved for the system to be effective. Both parties need to work together to address the issues that have been raised and ensure that the E-Way Bill system is streamlined and effective.

Some of the measures that can be taken to address the issues with the E-Way Bill system include simplification of the E-Way Bill generation process, extension of the validity of E-Way Bills, and facilitation of bulk generation of E-Way Bills. Additionally, there needs to be more awareness among businesses about the E-Way Bill system and its requirements.

Conclusion

The implementation of the E-Way Bill system has been fraught with issues, and there has been a conflict between the GST Authority and the Judiciary over its implementation. However, it is important for both parties to work together to address the issues and streamline the E-Way Bill system. This will ensure that tax evasion is curbed and that the movement of goods is tracked effectively.