How GST is evaded by traders

For any goods valued over Rs 50,000, an e-way bill is required to move it from one state to another. This bill is a unique number assigned to a consignment for smooth movement of goods and is generated before transporting goods, along with a tax invoice. The bill declares what all goods and worth how much are moving from point A to B. This is what traders and transporters exploit to allegedly evade tax.

An e-way bill is like a road permit. When a truck is carrying some goods from point A to B, along with the tax invoice for those goods it is essential to have the e-way bill. The e-way bill is just a system to show that goods are in movement. It is a way of declaring the goods as it has all their details and their worth.

What defaulters do is that they do not generate this e-way bill. The transporter, in connivance with the seller, doesn’t generate this bill, so that they do not have to declare what all goods are being moved. Unless it gets caught, the goods go and they are successfully able to evade tax.

In many cases, the transporter shows that the truck is carrying several consignments (instead of one), and each is less than Rs 50,000. In many cases of big traders or trading companies consignments are shown in names of shell companies, while they all belonged to one company. more  

View all 13 comments Below 13 comments
Every where politics comes. If they fine such several people, a wrong propaganda is made showing that on so n so regime, business was down/ is down etc. Intervention of politics should be curtailed n checking officials also should be under real scanner without politics there also more  
If a businessmen is dispatching goods with small invoices or less than 50K invoices through different transporters even in that case its the liability of the transporter to generate E-way bill of his full load truck mentioning all such invoices and goods. If the transporter does not generate E-way bill of such truck then penalty would be imposed upon the transporter even the truck and the goods can be seized and if the goods are found undervalued then the trader will also face legal action. Its the business community who evades tax for their own profits not the general customers or end users. more  
E way bill can be easily checked at octroi and major toll tax posts. What is required is govt will more  
If GST/VAT authorities start checking the consignments randomly at the unloading point
of transporter, without Bill trades
can be minimized but the traders
raise hue n cry in the garb of
'harassement' and the local ruling
party politicians get necessary
instructions issued to the officials
concerned not to do so. more  
Such tax evaders must be fined so heavily that they are financially ruined for ever. Thus they are OUT OF BUSINESS of cheating. Also put them in the jail for at least 10 years, expose them through media and initiate social boycotting of their families. Extremely harsh and draconian measures are the need of the hour to get rid of this cancer. more  
Such Loop Holes must be removed. Offenders must be Punished Heavily. more  
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