After West Bengal and Tamil Nadu, Delhi has become the third state to double the threshold for electronic-way (e-way) bill for intra-state movement of goods to Rs 1 lakh of the cargo value. Experts said the move poses a threat to seamless implementation of a unified, pan-India GST.
States are legally allowed to amend these rules and also give item-wise exemptions from e-way bill requirements, subject to ceilings. However, tax practitioners said the move could create confusion among taxpayers and make compliance more complex for businesses having consumer bases in multiple states.
FMCG companies, white-goods manufacturers and auto companies will bear the brunt if more states follow suit and digress from the e-way bill norms approved by the GST Council. The tacit understanding at the council is that such digressions are best be avoided. Sources said Tamil Nadu and West Bengal have notified state-specific exemptions.
The E-way bill mechanism mandates that supplier or recipient of good worth over Rs 50,000 inform the GST Network about details of movement of such merchandise. The system would allow the government to detect under-reporting of sales in business-to-consumer transactions, and is estimated to shore up monthly GST revenue by as much as Rs 10,000 crore.
E-way bill rules came into effect on April 1 for inter-state movement of merchandise.