E-checkpost
A New Paradigm
COMMERCIAL TAXES DEPARTMENT
BACKBONE OF STATE’S FINANCES BUT:
Outdated systems lead to pilferage and corruption.
Cost of compliance very heavy for tax payers – permissions,
frequent visits, harassment
Paper based systems unable to cope with high volumes.
Emphasis on regulatory role and policing
Bogged down by routine work – no attention to analysis
High pilferage
More
physical
controls
More
corruption
Higher cost of
compliance and
discretion
E-CHECK POST IS A COMPONENT OF A
LARGER ‘PROJECT TRANSFORMATION’
Department as regulator
Department as a service
provider
Frequent visits by dealers
All services at doorsteps
Policing by Department
Self Policing by Dealers
Paper based information
Everything is electronic
Old paradigm – Post event
confirmation
New paradigm - Pre
event confirmation
E-CHECK POST – A PART OF TOTAL
TRANSFORMATION OF A SYSTEM
e - Vardan
e - Varadi
e -Grievance
e - Payment
Services at
doorsteps
e - CST
e - SUGAM
A new paradigm E-Checkpost
m - Sugam
e - Grahak
Involving
common
citizens
Transparency and
Accountability
Comprehensive
Assessment
System
EParivarthana
e - Suvega
Accessibility
through mobile
phone
THE BIRTH OF CHECK POST
Every dealers has to issue a bill in a prescribed format.
The entire effort of the department is to make a dealer issue a bill
and then somehow force him to account it.
Logistics demand that every retail sale has to be preceded by a bulk
sale.
The bulk sale has to take place through a truck.
Checkposts are set up at vantage points to monitor these bulk sales.
CHECK POST – 2 BASIC ACTIVITIES
1
2
• At checkpost, a copy of the bills is collected for a
subsequent cross verification with the dealers
books of accounts – thereby ensuring that once a
bill is collected at checkpost, the dealer definitely
accounts the transaction and pays due tax.
• When goods transit through the state, the entry check
post issues a transit pass, which has to be surrendered at
the exit check post.
• This ensures that the goods destined to other states are
not sold within Karnataka, outside the accounts of the
dealers.
THE DELIVERY NOTE




It was discovered that some dealers were using parallel bill books
to evade tax
To encounter this, department decided to supply the Bill Books.
The leaves of Bill Book were enabled to have certain security
features.
These Department supplied Bill Books were called Delivery Notes
(in triplicate).
The intention was that the dealer would be forced to account in
his bill books, as the Department would have the correct number
of the Delivery Notes issued to a Dealer.
CHECKPOST: A LOSE-LOSE-LOSE SYSTEM
1
• The number of documents collected per day was about
1,00,000 – thereby rendering any cross verification impossible.
2
• Non surrender of a document at a checkpost generated huge
benefits for dealers – scope for corruption.
3
4
5
6
• Tremendous discretion for checkpost officer.
• Long waiting time for transporters at checkpost
• Collected documents would sometimes be sold back.
• Dealers faced difficulties in obtaining the blank delivery notes.
SOLUTION: A PARADIGM SHIFT
• Earlier regime based on philosophy that dealer
should use delivery note and Department’s
entire effort was geared towards making dealer
account the transaction in his/her books of
accounts.
• This paradigm sought to be reversed in –
• e- Sugam – The dealer accounts the transactions
first and only then can he/she despatch the
goods.
SOLUTION: A PARADIGM SHIFT
• Instead of filling up forms at checkposts and
officer then issuing each transit pass, the system
is now transformed as below • Before dispatch from origin, details now
uploaded online with generation of a Unique No.
• On arrival at checkpost, this unique number is
converted to a transit pass instantaneously by
the officer, post verification using the system.
• e-Suvega (Simply Upload about VEhicle and Go
Across) conceived to • Reduce hardship of transporters on one hand
• Prevent dumping of goods from other states to
avoid tax, on the other hand.
COMPARISON
BEFORE AND AFTER E-CHECKPOST
THE E – CHECK POST - CHALLENGES
BUSINESS PROCESS RE-ENGINEERING
1
2
3
• Change in law – Policy advocacy
• Unique Selling Proposition was – Checkposts become
hassle free.
• Change in Rules – Trade Bodies involved in drafting
new rules.
• Change in form – Re-design of forms
• The forms and screens designed by end users.
TECHNOLOGY INTERVENTION
 Web based system for 4,50,000 +
dealers.
 CTDWAN for networking 2000
systems located in 176 offices/check
posts.
 Integrated with SMS gateway of NIC.
 A control room, working 24X7, has
been established.
 The software development by an inhouse team of NIC.
M-GOVERNANCE THROUGH M-SUGAM
 Mobile based facility given to dealers for SUGAM no.
 The dealer now needed to send only critical parameters of
SUGAM, in the prescribed format through SMS.
 The system verified the request and returned the SUGAM No.
through SMS instantaneously.
 Mobile squads also enabled to verify the validity of SUGAM no.
shown by transporters and update their verification findings in
the system by sending SMS .
ENVIRONMENT BUILDING – WINNING OVER
THE DEALERS
 Interactive meets with trade bodies to
introduce the concept.
 Main selling point – dealers no longer
required to come to tax offices to obtain
‘Delivery Notes’ and trucks would get
instantaneous clearance at checkposts.
 Electronic C forms had already been
introduced, trading community was
very happy with Department’s reforms.
 On ground success seen when different
trade bodies started competing with
each other to organize training
programmes. Department just provided
the resource personnel.
CAPACITY BUILDING – ENABLING THE
OFFICERS AND OFFICIALS
 All officers/officials imparted week
long mandatory training on Egovernance initiatives and basic
Computer skills.
 Administrative Training Institute
and District Training Institutes
used.
 Training
programme
was
completely hands on, with Trainers
selected from the department.
REFORMED PERSONNEL POLICY
Rotation system adopted for staffing at checkposts.
In-cognito inspection of checkposts by supervising
officers
Online monitoring of checkposts.
THE MILESTONES !
OUTREACH
• 4,50,000+ dealers of the state enabled.
• Dealers download 85,000+ SUGAM numbers every day.
• Database captures 2.5 Crores+ high value invoice records
every year.
• 12,000+ SUGAM numbers verified at checkpost every day.
• The transporters of the entire country enabled.
• Every day 600+ transporters are obtaining and
surrendering 2000+ Transit Pass consignments.
Note - Reputed transporters all over the country, do not book goods to
Karnataka unless provided with SUGAM / SUVEGA numbers by the dealers.
THE OUTCOMES - 1
Advantage Trade
• Dealers no longer come to the offices.
• About 20,000 visits of dealers saved
per day.
• Zero scope for corruption.
Fast Track Transportation
• Check posts became much more
friendly.
• The delays at check posts were
reduced.
THE OUTCOMES - 2
Efficient Tax Administration
• Tax administration has become more
efficient.
• There was a marked increase in revenue
(cannot be ascribed to Sugam only).
• The drudgery of officer has reduced and his/
her accountability has increased.
Environment friendly
• Saves about one ton of paper per day.
• Saves waiting time and fuel consumption at
check posts for transporters.
THE UNIQUE FEATURES
1
• It was totally home grown.
2
• An excellent example of convergence of Government agencies
and resources.
3
• Magnitude is huge.
4
• Self-policing by trading community.
5
• In the last three years, not even once has the system failed.
6
• Because of in-house team of NIC, managing the software, and
updating software becomes hassle free.
7
• This project represents a WIN-WIN-WIN situation.
REPLICABILITY
• NIC is supporting North Eastern States Arunachal Pradesh, Sikkim, Nagaland, Tripura
and Mizoram to implement this model.
• From 1 June, 2012, Bihar has introduced a similar
system called “SUVIDHA”.
• Andhra Pradesh has replicated this system.
• Number of states have visited and studied the
system for replication – UP, Uttarakhand,
Chhattisgarh, etc.
THE WAY FORWARD
Sugam-2 : The double ended Sugam
Interstate Sugam
Gradual removal of check posts and substitution with
random checking through mobile squads.
Remote reading of e-Sugam.
REASONS FOR SUCCESS
Totally homegrown model.
Tangible benefits to all stakeholders, which has made
the changes irreversible.
A systems approach – e-Checkpost was a part of larger
Reform initiative by the Department – ‘PROJECT
TRANSFORMATION’.