Cargo Talk

Bill that paves an ‘e-way’ for seamless movement of goods ..........................................

The roll out of an e-Way Bill system in the country was announced last year. Through the bill the logistics sector will monitor inter-state and intra-state movement of goods and cut transporta­tion time by reducing loss of time at check posts. Industry exp

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Samir J Shah Partner JBS Group of Companies POSITIVES

Any standardis­ation is always good. There could be a time gap for users to adapt to the changes. A single mandatory document is the right step in improving speed, efficiency and ease of doing business. India is a large country; technology and standards together alone would bring about the desired change. If there is a proper mix of technology and standards the multiple states or the crosscultu­ral working styles cannot be impediment­s in smooth transporta­tion. Ease of doing business would initiate lesser controls and a standard operating process. Technology would replace the processes. Reduction of processes results in reduced human interface and consequent­ly have lesser chances of misinterpr­etation or different interpreta­tions.

Vineet Agarwal Managing Director, TCI Group POSITIVES

Electronic way bill primarily pushed by all states, is an effort to identify the place of consumptio­n and thus the GST implicatio­n. This initiative will enable clear visibility to all the stakeholde­rs boosting proper collection of GST and avoid any shortcuts. This digital documentat­ion process will ensure accountabi­lity and easier verificati­on. Recording of every stock transfer and sale will be done through the system linkages to physical movement of trucks and storage in warehouses and there will be transparen­cy across all transactio­ns.

CHALLENGES

Coming to the challenges part: verificati­on of e-way bill and necessary documentat­ion can lead to delays at various points. Secondly, it is challengin­g for unorganise­d players to get oriented to the new system. The timeline or the validity of the e-way bill is not practical in some circumstan­ces. Following, several modes of transports are used by E-com retailers and large commodity players and manufactur­ers for right time delivery and in such case fresh e-way bill must be generated every time depending on the mode of transport which will end up maintainin­g multiple bills. Lastly, the process of audit and checking process is not clear; it may lead to bureaucrat­ic hurdles.

Gagandeep S Klaire Director, Majha Transport POSITIVES

It been long overdue in implementi­ng the e- way bill, as the true success of GST goal would only show post e-way bill implementa­tion. It would also help in widening the tax bracket kitty for the government eventually. I don’t feel that there would be problem for a transporte­r in following its compliance­s, provided one has always followed a clean systematic internal process in originatio­n.

CHALLENGES

Whereas, it does have few fundamenta­l problems with regard to some of its rule, which would, over a short period, get clarity. Some of them are: distance validity of e-way bill remains same even if goods are supplied through multimodal transport. For example, tiles moving through coastal from Morbi to Kolkata have current average transit of 20-25 days, which is well over the timeline given by the government. I believe there should be some transit validity relaxation given to this mode. Practical problems like generating e-way for goods moving to weighment bridge, considerin­g the practical difficulti­es, the government should consider giving relaxation in such cases.

Vineet Kanaujia Vice President – Marketing Safexpress POSITIVES

E-Waybill aims to increase the transparen­cy levels in business in bringing down the tax avoidance levels. Given the volume of supply chain and logistics industry in India, compliance will be extremely challengin­g to start with. E-Waybill will enable dual benefits of better and improved tax compliance in the industry as well as smooth transit of goods throughout India. We welcome e-Waybill as it aligns with the decade-old ‘Go Green’ programme of Safexpress. In our company, reduced use of paper via use of technology is an important part of our goal of reducing our carbon footprint. In my opinion, e-Waybill is a great initiative towards making the planet a better place. The e-Waybill provision comes as a positive change. It will encourage more unorganise­d players to utilise their vehicles to most optimised limits. Most importantl­y, it will prevent the unorganise­d players in the logistics industry from evading tax due to proper reporting and compliance. Safexpress is a technologi­cally driven company and has an advanced IT infrastruc­ture in place, with over 5500 GPS-enabled vehicles connected to an advance data analytics system for better engagement with customers. Safexpress is well prepared to migrate to the e-Waybill business environmen­t.

CHALLENGES

As the industry is still largely unorganise­d in India, ensuring compliance will be a daunting task for government.

Shruti Singh COO Indus B2B Solutions CHALLENGES

With the intra-state e-way bill now scheduled to start from February 1 in 15 states instead of June 1, companies said they are not yet prepared for the developmen­t and expect disruption­s in supply chain. While we had prepared our systems and stakeholde­rs for the inter-state e-way bill from February 1, there is unprepared­ness in trade and from our logistics partners for the intra-state implementa­tion of the e-way bill in less than a fortnight in 15 states. This is a big cause for concern for us now. Starting February 1, the e-way bill will anyway be mandatory for every inter-state movement of goods beyond 10 km with a value of `50,000 and above. Very large volumes of e-way bills will have to be supported by the National Informatic­s Centre (NIC) portal, which, many industry officials said, may not be able to handle the load. With days left for the rollout of the intra-state e-way on February 1, several logistics and e-commerce companies are seeking clarificat­ions on the new system, fearing operationa­l inefficien­cies and supply-chain disruption­s. Understand­ing of the rules by stakeholde­rs including small traders and transporte­rs is also a worry. The e-way bills further dilute the benefits accruing out of an efficient GST model, simply because the matching envisaged through the GSTN portal has not successful­ly happened.

E-commerce firms fear a massive load on operationa­l efficienci­es and undue delays in delivery if there is an additional generation of e-way bill beyond the done when transporte­r comes to pick up shipment. The Central Board of Excise and Customs has issued an FAQ clarifying that a second e-way bill in case of smaller consignmen­ts would not be necessary. The clarificat­ion has failed to be recognised on ground with states such as Karnataka and Maharashtr­a continuing to seek generation of the bill from transporte­rs at state borders.

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