For the first time since the rollout of E-Way Bill in India, the Uttar Pradesh State has mandated for vehicles operating in the state to use the radio frequency identification device (RFID) tag along with e-way bill from November 1.
As per the E-way Bill rules, a vehicle carrying goods worth over Rs 50,000 must furnish the details electronically on the common portal and generate e-way bill. The portal captures the details of supplier, recipient and the value of goods transacted, which provides the tax department with an anti-evasion tool, especially for monitoring business-to-consumer (B2C) traders.
“Before transportation of such goods in the territory of Uttar Pradesh, vehicles shall obtain an RFID tag and get the said tag embedded on windscreen of the conveyance carrying such goods and get it mapped to the e-way bill system,” a notification issued by the state tax department earlier this week said.
The Department mandated RFID tags because without which it was difficult to the officials to intercept cargo due to lack of intelligence. The enforcement measure by tax officials has often been based on the trial-and-error approach as the check-posts at state borders were dismantled after e-way bill came into effect.
