India’s logistics industry is worth over $130 billion and is critical to the country’s plans to mature into an economic superpower. However, it wouldn’t be possible unless a more efficient logistics industry is in place. The GST is expected to remove bottlenecks in the full-fledged development of logistics infrastructure and lead to smoother transport system. The GST would replace the obsolete and inefficient transport system of yore that was built around the state taxation system.
Logistics should ideally make commercial activities efficient, but it is caught in the web of complex rules and regulations. There is a lot of paper work involved that impedes the flow of goods. Transporters are required to have in their possession hard copies of invoice as well as various forms.
1. Every transporter to maintain the records of consignor, consignee and other relevant detail of goods. [S. 35(2)]
2. Premises of transporter maybe inspected by proper officer if he is keeping goods escaping payment of tax. [S. 67(1)]
3. Unless the transporter proves that vehicle was used without his knowledge or connivance his conveyances shall be liable to confiscation if conveyance is used as a means of transport for carriage of goods in contravention of the provisions of this Act or the rules made thereunder i.e. carriage of goods without being properly accounted for or without obtaining registration etc.
4. If transporter carries goods without cover of specified documents i.e. the invoice or bill of supply or delivery challan and a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device (RFID) embedded on to the conveyance [(u/ R 2(1))], he shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to tax evaded, whichever is higher. [S.122(1)(xiv)/(xciii)]
5. Any persons who concerns himself with transportation, removal , depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with any goods which he knows or has reasons to believe are liable to confiscation under this Act or the rules made thereunder; shall be liable to a penalty which may extend to twenty-five thousand rupees. [S. 122(3)]
Also there are prosecution provisions u/s 132(1) [Does it mean drivers, conductors shall also get penalized]
6. Penalty for release of detained conveyance, where the owner of the goods does not come forward for payment of such tax and penalty transporter shall be charged with penalty equal to 50% of value of goods. [S. 129(1)]
7. If the above penalty is not paid within 7 days, conveyance shall be confiscated. [S. 129(6)]
8. However, confiscated vehicle may be got released after payment of fine equal to 50% of market value of goods to 100% of value of goods less tax. [S.130(2)]
9. Where consignor has not generated E-Way Bill and value of goods carried in the conveyance is more than fifty thousand rupees, the transporter shall generate E-Way Bill. [First Proviso to Rule 1(4)]
10. Where multiple consignments are intended to be transported in one conveyance, the transporter shall indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill, prior to the movement of goods. [Rule 1(4)]
11. Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, generate a new e-way bill specifying therein the mode of transport. [R. 1(3)]
12. E-Way Bill shall be live for specified period from the date of generation, depending upon distance. For distance up to:
| 100 Kms | 100 Kms |
| 300 Kms | 3 days |
| 500 Kms | 5 days |
| 1000 Kms | 10 days |
| More than 1000 Kms | 15 days [R. 1(7)] |
13. Every transporter to carry invoice or bill of supply or delivery challan and a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device (RFID) . RFID helps tracking Mobile Objects [R. 2(1)]
14. RFID Readers shall be installed to verify movement of vehicles [R. 3(2)]
15. A vehicle may be intercepted to verify the e-way bill or the e-way bill number in physical form for all inter-State and intra-State movement of goods.
16. Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in common portal.
17. Summary report of inspection shall be prepared in 24 hours and final report in 3 days by proper officer.
18. No multiple verifications, once goods are verified in one state.
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