The GST authorities have linked e-way bill with RFID and FASTag that allows them to track real-time data of commercial vehicles.
The method has been implemented to prevent revenue leakages that take place by recycling or non-generation of e-way bills.
Officials of tax department can access details of commercial vehicles that have passed a toll without generation of e-way bill.
The identity of the vehicle carrying a specific commodity to a particular state passing a specific toll can also be found out.
Further, officials can also identify details of a suspicious vehicle and its e-way bill generated by a suspicious tax payer with GSTIN number at a particular toll booth.
These data will help officials in identifying fraudulent activities such as bill trading, bill recycling etc of e-way bills. They can also increase their vigilance.
The transporter of goods is required to have a RFID system in his vehicle that is fed with e-way bill for the goods he is carrying in the vehicle.
The vehicle passing through toll gates will enable the information fed into the device to be uploaded on the government portal. The information will then be cross-checked.
For movement of goods from one state to another will require e-way bill if the value of the goods exceed more than Rs 50,000.
Precious items like gold do not need e-way bill. The states generating highest e-way bills are Gujarat, Maharashtra, Karnataka, Tamil Nadu and Haryana.
Machinery, textiles, iron and steel, mechanical appliances, automobiles and electrical machinery are the sectors with highest e-way bills generated.