The move will ensure accountability and cost reduction
Stakeholders in logistics sector have hailed the rolling out of e-way bill system by the GST Council, saying that it would help reduce the logistics cost.
However, some have expressed apprehensions that with the removal of check-posts for the intra-State transport, the e-way bill will not help much, while are saying that it will reduce the logistics cost substantially due to prevention of avoidable detentions of cargo-laden trucks.
The e-way bill system is being rolled out in Andhra Pradesh, Telangana, Gujarat, Kerala and Uttar Pradesh.
Embassy of Industrial Parks CEO Anshul Singhal told The Hindu that the rolling out of e-way bills would ensure accountability and easier verification , thereby aiding legal organised players. The digitisation of documentation is intended to make inter-State movement of goods more efficient.
“Generation of an e-way bill will reduce the paper documentation and check-time at inter-State checkpoints. Rules for the e-way bill compliance have been detailed by government and can be done online. RFID verification, customised features offer by logistic companies for generation of e-way bills can help drivers move up the learning curve fast,” he said.
Adoption of regional languages by applications will also aid drivers to follow the process inm hassle-free manner. Creating and cancelling e-way bills through SMSes will also aid adoption. As a result, logistics cost which is 14% of total value of goods at present is expected to reduce to 10 to 12% over time.
Global standards are at 8 to 10% and this move brings us closer to that. Distance covered by trucks will increase from 225-250 km/day to 300-325 km/day,” Mr. Singhal pointed out.
Resolution of any teething issue with e-way bills in market will move towards a large organised warehouse format from smaller distributed warehouses.
The companies will move from a tax efficiency strategy to warehouse efficiency strategy, the expectation is that market will be served better by large warehousing and logistics hubs.
Sravan Shipping Services MD G. Sambasiva Rao said the introduction of e-way bill system was a welcome decision.
“Already, the stakeholders are well-versed with the digital documentation. The GST Council should also look into the problems encountered in implementation of the rolling out of e-way bills,” he said.