E-way bill integration with FASTag, RFID: How vehicle tracking could curb tax evasion



Recently, the govt of India has integrated the E-Way Bill (EWB) system with FasTag, RFID.

E-Way Bill or Electronic-Way Bill

  • It is usually a singular bill number generated for the precise consignment involving the movement of products .
  • It must be generated before transporting or shipping goods worth quite Rs 50,000 within the state or interstate with the exemption to precious items like gold.  
  • The physical copy of the e-way bill must be present with the transporter or the person responsible of the conveyance and will include information like goods, recipient, consignor and transporter.
  • It may be a mechanism to make sure that goods being transported suits the GST Law and is a tool to trace the movement of products and check evasion .
  • On average, 25 lakh goods vehicle movements from quite 800 tolls are reported daily to the e-way bill system.



  • It is an electronic toll collection system, operated by The National Highways Authority of India(NHAI).
  • Based on frequency identification (RFID) technology, FASTag is affixed on the windscreen of vehicles.
  • In other words, FASTags are prepaid rechargeable tags for toll collection.
  • FASTags don't have any expiry date, hence, they will be used as long as they're not tampered with and are readable at the toll plazas.
  • Vehicles that have FASTag enabled on them, don't need to stop at toll gates as charges are deducted from the prepaid or checking account when the vehicle is moving under the National Electronic Toll Collection (NETC) programme
  • From 15th February 2021, FASTag has become compulsory for all vehicles across the country.
  • Radio Frequency Identification (RFID)

It is a technology that uses radio waves to passively identify a tagged object. it's utilized in several commercial and industrial applications, from tracking items along a supply chain to keeping track of things verified of a library.

Relevance of Integration  

  • Through this, the GST authorities will now be ready to track real-time data of economic vehicle (CV) movement on highways.
  • It will enable tax officers to undertake live vigilance in respect of EWB compliances by businesses and can aid in preventing revenue leakage by real-time identification of cases of recycling and/or non-generation of EWBs.
  • Tax officers can now access reports on vehicles that have passed the chosen tolls without EWBs within the past jiffy .  
  • Any suspicious vehicles and vehicles of EWBs generated by suspicious taxpayer GSTINs, that have passed the chosen toll on a near real-time basis, also can be viewed during this report



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