FASTag

The Union Government has integrated the E-Way Bill (EWB) system with FasTag and RFID.

Important points:

• E-Way Bill is usually a unique bill number generated for the specific consignment involving the movement of goods.
• Under the Goods and Services Tax (GST) regime, EWBs are mandatory for inter-state transportation of goods valued over Rs. 50,000 from April 2018, with the exemption to precious items such as gold.
• It is a mechanism to ensure that goods being transported comply with the GST Law and is a tool to track movement of goods and check tax evasion.

FASTag:

• The FASTag is a reloadable tag that allows automatic deduction of toll without having to stop for carrying out the cash transaction.
• The tag uses Radio Frequency Identification (RFID) technology and is fixed on the windscreen of the vehicle once active.
• RFID is the use of radio waves to read and capture information stored on a tag attached to an object.
• A tag can be read from up to several feet away and does not need to be within the direct line-of-sight of the reader to be tracked.
• From 15th February, 2021, FASTag has become compulsory for all vehicles across the country.
• It is operated by National Highway Authority of India (NHAI)

Significance

• On an average, 25 lakh goods vehicle movements from more than 800 tolls are reported on a daily basis to the E-Way Bill system.
• The integration of EWB, RFID and FASTag will enable tax officers to undertake live vigilance in respect of EWB compliances by businesses.
• Taxmen can now access reports on vehicles that have passed the selected tolls without e-way bills in the past few minutes.
• It will aid in preventing revenue leakage by real-time identification of cases of recycling and/or non-generation of EWBs.

SOURCE: PIB