UP makes RFID tags mandatory from today for transporters to keep a track on interstate movement of goods

Lucknow, Nov 1 (KNN) Obtaining Radio Frequency Identification (RFID) tag for fulfilling e-Way bill requirements has become mandatory in Uttar Pradesh for transport carriers from today.

Uttar Pradesh government has notified that the transporters who are required to furnish information in FORM GST EWB-01 are required to obtain an RFID tag under GST. 

Notification specifies that such RFID tag should be embedded on the windscreen of conveyance carrying such goods and such RFID tag should be mapped to the E-way bill system.

Welcoming the move, Indian Industries Association (IIA), President, Sunil Vaish said, “The system of RFID has been introduced with an objective of curbing tax evasion.”

Though at initial stage operational issues might create a problem for transporters but from the perspective of state government this move of obtaining RFID tag under GST will keep a track on inter-state transit of goods from UP, he added.

Adding further, he pointed, “This move will safeguard honest taxpayers and thus create a healthy competitive environment in the state.”

He also suggested that this should be implemented at slow pace considering operational issues.

The e-Way bill is mandatory for the transportation of goods valued at Rs 50,000 or more between States (inter-State) and within a State (intra-State).

Though the e-way rules require the use of RFID tag, no other state has made it mandatory since the rollout of the e-way bill in April.