New Delhi: The GST council has mandated FASTags for all commercial vehicles which will be generating an E-way bill from 1 April 2020. This integration will be a boost to GSTN as it will help in identifying leakages with respect to non-issuance or misreporting of E-way bill.
National Electronic Toll Collection (FASTag) program, the flagship initiative of the Ministry of Road Transport & Highways, has been implemented pan-India, across National Highway toll plazas.
It has given a major fillip to the digital India initiative by converting cash toll payments to electronic and ushered enhanced transparency into the entire tolling ecosystem, said the Ministry of Road Transport & Highways in a Press communication today.
With the recent mandate to declare all lanes of fee plazas on National Highways as FASTag lanes, it has seen a much wider adoption both in terms of new tag sales as well as higher transactions at toll plazas.
FASTag issuance saw a huge jump during the last two weeks of November. From a daily average of 28,000 FASTags, the issuance shot up to a daily average of 1.5 lakh tags in the last 5 days. Similarly, transactions have also gone up – from an average one million daily transactions to around 1.6 – 1.7 million daily transactions.
The mandate would definitely increase the penetration of NETC, as many of the toll plazas are already collecting 50-55% of the toll collection through FASTag. The higher NETC penetration will ensure seamless movement of traffic and bring down overall logistics costs in the country. The increase in NETC penetration will also add more transparency to the ecosystem.
The Ministry has also announced a pilot project where FASTags can be used for parking purposes at Hyderabad Airport. After the pilot, Delhi, Mumbai and Bangalore will also launch the facility under FASTag 2.0.
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