In a move that is exacted to assist curb tax evasion, Goods and Services Tax (GST) authorities will now be able to track real-time data of commercial vehicle (CV) movement on highways by integration of the e-way bill (EWB) system with RFID. In this article, we will discuss E-way bill integration with FASTag.
What is an E-way bill?
An E-way bill is a permit required for interstate and intrastate movement of products valued at above Rs. 50,000. It includes information about the items, the seller, the recipient, and the carrier. It can be generated online using the GSTN.
What is Fastag?
FASTags are prepaid toll collecting tags based on radio frequency identification (RFID) technology. The National Highway Traffic Safety Administration (NHAI) operates it under an electronic toll collection system. FASTags are generally attached to the windscreen of vehicles.
E-way bill integration with FASTag
In a move that is expected to assist curb tax evasion, Goods and Services Tax (GST) authorities will now be capable of tracking real-time data of commercial vehicle (CV) movement on highways by integration of the e-way bill (EWB) system with FASTag and RFID. The integration of e-way bill, RFID, and FASTag will enable live vigilance for e-way bill compliances by businesses and help prevent revenue leakage by real-time classification of cases of recycling of e-way bills or non-generation of e-way bills.
A new system for E-way bill integration with FASTag
Tax officers can now obtain reports about vehicles that have passed the selected tolls without e-way bills in the past few minutes. They can also view details of vehicles carrying critical materials specific to the state that have passed the selected toll.
Further, tax authorities can view details of any suspicious vehicles and vehicles of e-way bills generated by suspicious taxpayer GST identification numbers (GSTINs) that have passed the selected toll on a near real-time basis.
From January 1, 2021, RFID/FASTag has been integrated with the e-way bill system. A transporter must have a radio-frequency identification (RFID) tag in his vehicle. Detachments of the e-way bill generated for goods being carried by the vehicles are uploaded into the RFID system.
When a vehicle crosses the RFID tag reader on the highway, the details fed into the device get uploaded on the government portal. The information is later used by revenue authorities to verify the supplies made by a GST-registered person.
If you want any other guidance related to GST Registration or GST Return filing, please feel free to talk to our business advisors at 8881-069-069.
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