How GST is evaded by traders
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
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