By Shivali
E-commerce is the new flourishing form of trade in the country which requires subsequent changes in the existing legal regime. A waybill is a form issued by Sales Tax Department to the person who wants either to purchase goods from other states or to sale goods to dealers of other states.
It is a documentary proof of CST transaction held between dealers of two states or between dealer and final consumer of two states and thereby is a must for making CST purchases.
The regime of E-Commerce came to the country when the system was inadequate and several other laws such as Competition law, taxing policy etc. were non-exhaustive on this issue. Competition law regime can be said to be inadequate in the given situation as it is not protecting E-Commerce industry from monopoly or price fixation.
The checking procedure for every transaction is regulated by establishment of check post between different states. There is concept of waybill which needs to be shown at the required check post as a matter of verification.
In the regular process of development of E-Commerce the major hurdle which was faced was regarding the verification of Waybill at the check post. In the era of advancing trade and flourishing commerce the documentary formalities like Waybill create hurdle.
Waybill document contains all the necessary information regarding the product in transit. This document contains details such as the name of the consignor, consignee, the name and type of article carried, required weight etc. which is required for levy of central sales tax.
The method of levy of taxes on these kinds of transactions has become cumbersome. They can be said to be cumbersome and time taking due to the checking procedure laid down by the departments.
The form of waybill system should be changed from manual to electronic. The need for such change is due to the reason that the essence of this kind of trade is time. The non-delivery of products on time leads to the cancellation of the consignments, therefore documentary process like waybill creates problem in the growth rate of these kinds of trade in the country.
India is not having the GST system therefore different states across the country have their own procedure for collection of tax. Existing Waybill system causes a lot of problems as the vehicles have to face long line for manual checking process at various check posts.
The E-Commerce industry where time-bound delivery is the essence seems to be really hit hard by the delay at the check posts. The E-Commerce also faces the problem related to cancelling of consignment due to delay.
Non-uniformity in the waybill system is the biggest hindrance as some states have E-waybill system while others still follow the written forms system which is available at their revenue department and respective websites. The cumbersome process of filling up and clearance of these waybills is a major cause of delay, hence affecting the growth of this new upcoming form of commerce.
E-waybill is preferred due to the reason that it reduces the time of filling up of form and verification process. The manual way of checking was time consuming.
Every vehicle carrying the consignment for trade purpose has to undergo the manual checking process and after the checking the vehicle is allowed to carry forward their journey. This can be said to be an inefficient way of checking which is followed at the check posts as this also leads to tax evasion by various parties.
Due to the jam created by many vehicles at a particular time at these check points there are intentional and non-intentional errors in the checking process. But as per the proposed change in form of the waybill, it should be made electronic which means that the form can be filled online giving all the required details and as a result of it a number is generated. The number will then be matched at respective check post and hence the time can be saved by avoiding manual checks.
The uniform introduction of E-Waybill system will help to make the system regular. As a result of submission of this form a unique number will generate which transport owner has to show at the check post rather than undergoing manual check.
This system if made uniform across the country will not only help to reduce the burden of work at check post but will also save time and will reduce the rate of corruption. The rate of corruption is increasing day by day due to these check posts.
The officers working there take the plea of manual check and faulty weighing machines for wrong entry during the check. Manual checking of the vehicle for filling the waybill involves discretion of police at various check posts to a large extent.
In contrast to this if there will be E-waybill then there will be no need for wasting time at the check post rather direct form can be submitted to the concerned department and only the unique number that will generate have to be verified at these posts.
This is not a new idea in the country but many states have adopted this system of uniform E-waybill for their economic well-being and development and flourishing of trade. This has promoted the rate of economic growth in those states as compared to those states that lack such mechanism. States like West Bengal, Orissa, Rajasthan, and Karnataka are some of them that have activated and notified regarding the E-Waybill system.
Sikkim being the state in the north-eastern part of the country and with less availability and facility has still introduced the system of E-waybill keeping in view the development of the state. Mizoram introduced this system of E-Waybill with the concept of making the whole system paperless which is also one of the major concerns of the present society due to the environmental issue.
Karnataka has introduced this system by the name E-Sugam which means that the whole purpose of this is to make the transport system smooth and easy.
The major problem that arises in case of e-commerce is that in several occasions there are even very small amount purchase and it is not possible for all such purchase to collect waybill. States like Rajasthan and West Bengal introduced the E-Waybill system and even allowed tax exemption for certain amount of goods.
These kinds of incentives are necessary for advancement of trade and proper collection of tax and hence, for development of state as a whole. In the state like Jharkhand where there can be high collection of tax from these E-Commerce transactions, wastage at check-post is avoided by these institutions just because of the cumbersome process of collection of tax.
Not only Jharkhand but there are many states those who still rely on the manual checking and paper waybill system which becomes one of the major reasons for their economic backwardness. These states must introduce the system of E-Waybill so that there can be flourishing E-Commerce hence increasing the total revenue.
After the proposed introduction of GST system in the country in April 2016, probability is such that the management and administration of this waybill system will become easy due to same kind and structure of taxing policy across the country. This will give an opportunity to other states in the country to coordinate well and learn from already applied E-waybill system in the country and will ultimately improve their economic and social condition.
So, the need of the hour is to make provision for E-waybill across the country for easy collection of tax and flourishing of trade and commerce.