Streamlining Transportation with RFID Technology in GST E-way Bills: A Game-Changer for Indian Businesses
As a business owner in India, you might be aware of the crucial role technology plays in ensuring efficient transportation and tracking of goods.
One such groundbreaking innovation is the incorporation of RFID (Radio Frequency Identification) technology in GST E-way Bills.
This technology, which has already made its mark in various sectors like retail and logistics, guarantees the security and transparency of transactions.
Before the implementation of GST and E-way Bills, businesses faced numerous challenges, such as the absence of real-time tracking, inefficiencies due to manual checks, and the risk of penalties and prosecutions for non-compliance.
The manual inspection of trucks and goods by VAT or Excise officers was time-consuming and prone to human error. This led to delays in transportation, increased costs, and potential losses owing to theft or malpractice.
Now the question is, Why RFID Technology is Necessary for Business Owners?
The need for real-time tracking, enhanced efficiency, and better compliance control led to the introduction of RFID technology in the E-way bill system.
With RFID, businesses can now monitor the movement of goods more accurately and ensure that the details mentioned in the E-way bill correspond with the actual consignment. Some of the advantages RFID technology provides are as follows:
- Improved Tracking: RFID technology allows for real-time tracking of goods, making it easier for businesses to ensure the accuracy and legitimacy of the consignments being transported.
- Enhanced Efficiency: By automating the tracking process, RFID technology minimises the need for manual checks and reduces the chances of human error, leading to increased efficiency in transportation and compliance processes.
- Security: RFID tags provide a secure and transparent record of the consignment's details, making it more difficult for goods to be tampered with or stolen.
- Competitive Advantage: By streamlining the transportation process and ensuring compliance with GST regulations, RFID technology helps businesses stay ahead of the competition and build a loyal customer base
How RFID Technology Works in GST E-way Bills
Radio Frequency Identification (RFID) technology is a highly efficient method of tracking vehicles and goods being transported in them. It uses radio waves to detect and identify objects without contact or line of sight.
An RFID tag is embedded at a pre-specified location on the vehicle, and it contains the details of the e-way bills generated for goods being carried by the vehicle.
The reader device scans the RFID tag on the vehicle and retrieves the details of the e-way bills, and uploads them to the Government Portal. This system helps streamline the transportation of goods as it eliminates the manual process of verification of goods by revenue authorities.
Uttar Pradesh became the first State to make RFID tags mandatory on vehicles, effective from November 1, 2018. Following Uttar Pradesh, Maharashtra is in the advanced stages of testing the system and may introduce it soon.
With RFID technology, the government can track the movement of goods more efficiently, thereby reducing transport delays and increasing compliance with GST laws.
Mandatory Use of RFID in CGST Act
RFID technology has been incorporated into the CGST Act, making it compulsory for specified categories under Rule 138A and Rule 138B of CGST Rules, 2017.
Rule 138A of CGST - Documents and devices to be carried by a person-in-charge of a conveyance
Rule 138A of the CGST specifies the requirements for a person in charge of a conveyance to carry documents while transporting goods. According to the rule, the person in charge of a conveyance must carry an invoice or bill of supply or delivery challan.
He must also carry a copy of the e-way bill or its number in electronic form or linked to an RFID on the conveyance. This does not apply in the case of the movement of goods by rail, air, or vessel.
While transporting imported items, the person in charge must also have a copy of the importer's bill of entry. The Commissioner may require a class of transporters to obtain a unique RFID and get the said device embedded into the conveyance.
The Commissioner may also notify the conveyance's driver to carry a tax invoice, bill of supply, bill of entry, or delivery challan when transporting items for other than supply purposes.
Requirements for Person-In-Charge of Conveyance:
- Carry an invoice or bill of supply or delivery challan
- Carry the e-way bill number in electronic form or linked to an RFID device on the conveyance
- Carry a hard copy of the imported goods' bill of entry with you (in case of imported goods)
- Obtain a unique RFID and get the said device embedded onto the conveyance (as per direction from Commissioner)
- Carry tax invoice or bill of supply or bill of entry, or a delivery challan (as per the notification from the Commissioner)
Rule 138B of CGST – Verification of documents and conveyances
Rule 138B of CGST allows the Commissioner of Central Goods and Service Tax (CGST) or any officer authorised by him to intercept any conveyance transporting goods and verify the accompanying e-way bill.
To facilitate this verification process, the Commissioner may also get Radio Frequency Identification Device (RFID) readers installed at places where physical verification of goods is required.
Physical verification of the conveyances is carried out by the officers authorised by the Commissioner or any officer empowered by him.
Furthermore, on receiving specific information on tax evasion, physical verification of any specific conveyance can also be conducted by any other officer after obtaining necessary approval from the Commissioner or an authorised officer.
This rule ensures that all goods in transit are accounted for and tracked for accurate payment of taxes.
Final Thoughts
The incorporation of RFID technology in GST E-way Bills has provided businesses with a more efficient, transparent, and secure means of transporting goods. It has streamlined the supply chain management process, reduced lead times, and minimised the risk of theft or malpractice.
This step forward by the Indian government is undoubtedly contributing to the country's growth and development. If you are a business owner or a consultant looking to leverage the benefits of RFID technology in GST E-way Bills, now is the time to take action. Reach out to an expert who can guide you through the process and help you stay compliant with the latest regulations.
Don't miss out on the opportunity to optimise your business operations and stay ahead of the competition. With the right guidance and the power of RFID technology, you can ensure the smooth and efficient transportation of goods while adhering to GST regulations.