Topyaps Logo

Topyaps Logo Topyaps Logo Topyaps Logo Topyaps Logo

Topyaps menu

Responsive image

GST Update: Know How 22 States Will Simultaneously Help India Save Billions Of Rupees

Published on 4 July, 2017 at 6:38 pm By

The Goods And Services Tax (GST) was implemented nationwide on July 1. India’s most ambitious tax reform since independence is set to replace a number of indirect taxes levied by the Center and state at various points, which is aimed at developing a unified national market.

With its roll out, the new indirect tax regime achieved its first historic win when 22 states of India abolished checkpoints at their respective borders on the very same day.

 

 

 



 

In 2005, a report by the World Bank estimated the cost of delays faced by transporters at checkpoints between Rs. 900 crore and Rs. 2300 crore per year. Therefore, in light of the decision taken by the 22 states, an estimated amount of Rs. 9 billion to Rs. 23 billion that the Indian economy was losing annually would be saved.

Before the implementation of GST, check posts, among other duties, were responsible for collecting taxes from trucks and carriers moving goods from one state to another. Trucks lined up to form great queues at state borders waiting for hours to pay taxes at checkpoints was a common sight on highways.

A representative of trucks queued.Los Angeles Times

 

As per the new GST rules, an E-way Bill will be generated for the supplier, transporter or the logistics company, and the recipient, by the Goods and Service Tax Network (GSTN). For moving goods worth more than Rs. 50,000 companies would be required to register beforehand. The E-way Bill will have a strictly limited validity period depending upon the distance. At any point of transit, tax officials may check the E-way Bill for tax evasion. This E-way Bill has rendered checkpoints invalid.

 

Although according to Dr. Hasmukh Adhia, Revenue Secretary at the Finance Ministry:

There are couple of other check posts like the state excise check posts. State excise is the state duty on liquor/alcohol, now these things may remain.

We imagine this news will bring a sigh of relief for truckers, transporters, business owners alike. More importantly, a billion saved could bring a million possibilities.


Advertisement

 

Advertisement

Latest Stories

Kangana Gave Befitting Reply To Trollers Who Criticising Her for Posing in a Bikini

Kangana Gave Befitting Reply To Trollers Who Criticising Her for Posing in a Bikini


Watch: Ranbir Kapoor Talk About His Marriage with Alia Bhatt In Recent Interview

Watch: Ranbir Kapoor Talk About His Marriage with Alia Bhatt In Recent Interview


Here’s Google’s report of the best Android apps 2020 in India

Here’s Google’s report of the best Android apps 2020 in India


Kangana Shared A Two Piece Picture of Her Got Trolled on Twitter

Kangana Shared A Two Piece Picture of Her Got Trolled on Twitter


17 Unseen Photos of Harshita Gaur, Famous Actress of Sadda Haq & Mirzapur

17 Unseen Photos of Harshita Gaur, Famous Actress of Sadda Haq & Mirzapur


Advertisement

Most Searched

More From Business

Popular on The Web