UP Becomes The First State In India To Make RFID Tag Mandatory For E-Way Bill Representative Image of a RFID scanner. (Photo by David McNew/Getty Images)

Uttar Pradesh (UP) has made it compulsory for all the vehicles in the state to use radio frequency identification device (RFID) tag along with e-way bill beginning from November. Although e-way regulations have compulsory usage of RFID tags, no other state has implemented it by making it mandatory.

If any vehicle carries good worth beyond Rs 50,000, they must provide the details on the digital portal and obtain an e-way bill. This way, the portal has hold of the details of suppliers, recipient and the goods value. This aims at monitoring B2C traders. (business to customer)

The state tax department of Uttar Pradesh issued a notice this week which read, “Before transportation of such goods in the territory of Uttar Pradesh, vehicles shall obtain an RFID tag and get the said tag embedded on the windscreen of the conveyance carrying such goods and get it mapped to the e-way bill system.”

Due to lack of intelligence, tax officials are finding it hard to intercept cargo. Financial Express reported that the traditional approach had been the trial-and-error method. But e-way bill solves the issue.

This move will ensure real-time data flow, which will serve as a big booster. If the RFID readers are strategically placed, it will improve the current system where random manual searches take place.

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