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GST: 22 states abolish border check posts ahead of E-way rollout

With the arrival of GST and E-way Bill in the pipeline, these border check posts are destined to become obsolete.

BT Online   New Delhi     Last Updated: July 3, 2017  | 22:02 IST
GST: 22 states abolish border check posts ahead of E-way rollout

Taking a step towards smooth transportation of goods across state borders, 22 states removed border check posts with the arrival of Goods and Services Tax (GST). The new tax regime which aims to build India as a unified market emphasises on easy shipping of goods within the country.

States including Telangana, Bihar, Andhra Pradesh, Arunachal Pradesh, Bihar, Gujarat, Karnataka removed toll booths from their boundaries. Kerala, Madhya Pradesh, Maharashtra, Sikkim, Tamil Nadu, West Bengal, Chhattisgarh, Delhi, Goa, Haryana, Jharkhand, Odisha, Rajasthan, Uttarakhand, Uttar Pradesh, and Puducherry also did away with their check posts.

Meanwhile, Assam, Himachal Pradesh, Manipur, Meghalaya, Nagaland, Punjab, Mizoram, and Tripura are in the process of dismantling their toll booths.

GST has the Electronic Way (E-way) Bill under its ambit which makes these toll booths unnecessary. Transporters hauling goods worth more than Rs 50,000 will have to pre-register their load with GST Network (GSTN) in advance. The E-way bill thus generated will be valid for a period of 15 days, with one day of travelling for 100 km and 15 days for more than 1,000 km transit.

The government is still in the process of developing the required framework for generating E-way bills and is expected to complete it in the next six months. In the mean time, States have sent out fresh advisories to field officers to ensure that goods are not held up and the new rules are implemented.
Assam and Uttar Pradesh have instructed their officials to check the GST Identification Number (GSTIN), along with the invoice number, consignment notes, tax invoice and registration of the logistic firm till E-Way Bill comes into effect, a Times of India report stated.

This move is expected to help with resolving long queues of goods-laden trucks waiting outside state boundaries which often led to delays in delivering the cargo. Cutting this delay short can help the economy save around Rs 2,300 crore which used to be lost due to goods trucks waiting at state borders with their cargo, the TOI report said.

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