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All India Tax Associates Federation Calls for Abolition of GST E-way Bills

The All India Tax Associates Federation (AITAF) has called for the elimination of E-way Bills under GST, expressing concerns to Finance Minister Arun Jaitley. AITAF argues that the short acceptance period for bills creates a digital compliance burden for small businesses. They believe physical verification and vehicle detention contradict GST's goal of simplifying goods transportation and will increase compliance issues for traders.

📖 1 min read read🏷️ E-way Bill

AITAF Urges Finance Minister to Discard E-way Bills

The All India Tax Associates Federation (AITAF) has called upon Finance Minister Arun Jaitley to completely abolish E-way Bills under the Goods and Services Tax (GST) framework. This appeal comes in the wake of the Central Board of Excise and Customs (CBEC) issuing new regulations concerning the use of these bills.

Concerns Regarding Compliance Burden and Business Impact

AITAF contends that the allocated time for recipients to confirm an E-way Bill is insufficient. They suggest this inadequacy could impose substantial digital compliance burdens, particularly affecting small businesses. The federation highlights that GST was introduced with the aim of simplifying business operations and facilitating smoother transportation of goods across the nation.

However, AITAF argues that the practice of physical verification of goods and the potential detention of vehicles due to invalid E-way Bills would contradict this objective. Such measures, in their view, would merely escalate the compliance obligations for traders and negatively impact the efficient movement of goods. This stance was also reported by DNA.

Further Reading

Frequently Asked Questions

What is an E-way Bill under GST?
An E-way Bill is an electronic document required for the movement of goods exceeding a certain value under the Goods and Services Tax (GST) regime in India. It ensures that goods being transported comply with GST laws.
Who is required to generate an E-way Bill?
Typically, registered persons who cause the movement of goods worth more than a specified amount (e.g., Rs 50,000) are required to generate an E-way Bill. This includes consignors, consignees, or transporters.
What are the consequences of not carrying a valid E-way Bill?
Failure to carry a valid E-way Bill during the transport of goods can lead to penalties, detention of goods, and even confiscation of the conveyance, depending on the nature and severity of the non-compliance.
How can businesses ensure compliance with E-way Bill regulations?
Businesses can ensure compliance by accurately declaring all necessary details, generating E-way Bills before the commencement of transport, and ensuring the validity period covers the entire journey. They should also stay updated on the latest rules and amendments.
What is the primary purpose of the Goods and Services Tax (GST) in India?
The Goods and Services Tax (GST) was introduced in India to simplify the indirect tax structure by subsuming multiple central and state taxes into a single, comprehensive tax. Its primary purpose is to create a unified national market, reduce tax cascading, and improve ease of doing business.
What is the role of the Central Board of Excise and Customs (CBEC)?
The Central Board of Excise and Customs (CBEC), now known as the Central Board of Indirect Taxes and Customs (CBIC), is responsible for administering indirect taxes in India, including GST. It formulates policies, implements regulations, and collects revenue from customs, excise, and service taxes, among others.

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