As many as 22 states have abolished border commercial tax checkposts after the rollout of goods and services tax (GST) on July 1, marking a big step towards ‘One nation, one tax’ goal of this reform.

 State border check posts scrutinise material and location-based tax compliance, resulting in delays in delivery of goods and cause environment pollution as trucks queue up for clearance.

 The states include Gujarat, Bihar, Karnataka, West Bengal, Tamil Nadu, Haryana, Kerala, Madhya Pradesh, Uttarakhand. Eight states including Assam, Himachal Pradesh, Manipur, Meghalaya, Nagaland, Punjab, Mizoram and Tripura are in the process of abolishing their checkposts, an official statement said on Monday. 

Eight states, including Assam, Punjab, Himachal Pradesh, and some north-eastern states, are also in the process of abolishing check posts, a finance ministry statement said.

Many states have also issued advisories to field to not stop trucks. The abolition of checkposts will allow seamless movement of goods across the border, ending hours of waiting commercial vehicles had to endure at state boundaries. 

Seamless transport is expected to cut transport costs, which will help make goods cheaper. In India, goods are largely transported by the most costly mode, roads, and the state boundaries escalated that costs. 

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.

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