RFID Tag-Mapping on the E-way bills


Date: 02 Feb 2023

RFID Tag-Mapping on the E-way bills


The establishment of a single, national common market for goods and services was one of the main goals of the GST. The elimination of Check Posts, effective on July 1, 2017, helped to accomplish this goal.


E-way bills

The E-way Bill system was introduced progressively throughout India. By providing information about the material being shipped on the e-way bill portal, the person who ships the items is expected to generate an e-way bill based on an underlying document (a tax invoice or a delivery challan).


E-way bills were introduced for the following purpose:

  1. Tracking the movement of goods to prevent tax evasion.

  2. Avoiding checkpoints that hinder the transportation of goods.

  3. Replacing the multiple permits required during the VAT period with a single permit enables the transportation of goods throughout India.


The government plans to instal RFID Tag Readers that will read the details of the goods being transported by the vehicle tagged with the RFID, thus reducing (if not entirely eliminating) the need for manual intervention to verify goods. This will simplify the processes governing the shipment of goods throughout India.


Operating Procedure of RFID

Radio waves are used by Radio Frequency Identification Devices (RFID) to locate and identify goods. An RFID Tag would need to be obtained by a transporter and installed on the vehicle at a predetermined location (usually on the windscreen). This device would be provided with the information from the e-way bills generated for the goods the vehicle was transporting. The reader would identify the information entered into the gadget and upload it to the government portal as soon as the vehicle passes the RFID Tag reader on the highway.


The Revenue Authorities may then utilise this information to verify the supplies made by the suppliers. This system may only partially eliminate revenue authorities' manual inspection of goods. Still, it may be limited to cases involving the transport of sensitive goods and where there is a suspicion that the movement of the goods is taking place illicitly or intending to defraud the revenue.