The proposed GST would be under need for an e-permit to be flashed at inter-state borders as the states insisted the old analogue practices continue.
The states seem to have continued with the old ‘permit raj’ system, undermining the biggest gains of GST. Though the paper permit may become an e-permit, those transporting goods within or outside states will still have to queue up at border check posts where their e-permits will be checked.
Experts fear that this would not help in cutting long queues of trucks at check posts as also breed corruption.
The Centre resisted the move as its indirect tax administration moved away from the inspector raj era, but yielded to states' insistence on inclusion of this clause in the final GST law in order to build consensus and get the reform bill rolling.
Source – The Economic Times