An Analysis Of E-Way Bill And Evaluating Its Effectiveness In Curbing Black Market Operations

Abstract

The introduction of the E-Way Bill system under the Goods and Services Tax (GST) framework has been a significant step in streamlining the movement of goods across India while curbing tax evasion and smuggling. This study focuses on the effectiveness of the E-Way Bill system in Chennai, a critical commercial hub, in preventing smuggling and reducing black market operations. It examines how the real-time tracking and documentation requirements enforced by the E-Way Bill have impacted illegal activities such as under-invoicing, unaccounted goods movement, and tax evasion in the region. Through an analysis of compliance data, enforcement actions, and interviews with tax authorities and industry stakeholders, the study evaluates whether the E-Way Bill system has successfully acted as a deterrent to smuggling in Chennai. It also explores the challenges, loopholes, and adaptation of black market operators in circumventing the system. The findings suggest that while the E-Way Bill has significantly improved transparency and accountability in goods transportation, certain operational gaps and enforcement issues still allow for limited smuggling activities. The study concludes with recommendations for strengthening the system to further reduce black market operations and improve tax compliance.