GPS-Based Toll Collection: Know Everything About It

byYashi DasLast Updated: April 15, 2024
GPS Based Toll Collection

The news of GPS-based toll collection has been doing rounds ever since the Union Transport Minister Nitin Gadkari announced about it a long time ago. The government plans to remove all the toll plazas or toll booths and enable GPS-based toll collection.

FASTag has already been made mandatory for four-wheelers which leads to the automatic deduction of toll tax through Radio Frequency Identification (RFID) technology. It happens when one approaches the toll gate where the vehicle drivers need not stop for a few seconds so that the toll tax amount gets deducted automatically. All you need to do is to buy a FASTag from Paytm and link it to your bank account. Now, the plan is to enable GPS monitoring of the vehicle movement for toll collection.

What is GPS-Based Toll Collection?

GPS-based toll collection system means that vehicles need to have a tracking device installed to monitor their movement on highways. When a vehicle equipped with this device enters a toll road, the highway system tracks its journey and charges the toll based on the distance traveled when the vehicle exits the highway.

How Will GPS-Based Toll Collection Work?

To implement GPS-based toll collection, all vehicles will need to be equipped with a GPS device. This will allow the government to track the movement of vehicles and determine which toll roads they use. The government can then calculate the toll tax based on the number of toll gates the vehicles pass through and the distance travelled.

Currently, there is one toll gate at the end of each stretch of a toll road or construction project. These stretches, also known as projects, are managed by specific contractors for construction and maintenance. The distance between two toll gates is typically around 60 km, although it may vary slightly. The National Highway Authority of India (NHAI) has established toll rates for different types of vehicles for a 60-kilometer stretch. If the road stretch is shorter than 60 km, the toll tax will be adjusted accordingly.

Benefits of Using GPS-Based Toll Collection System

Some of the benefits of using GPS based toll collection system are:

  • Vehicles won’t have to stop at toll plazas as all the toll plazas will be removed
  • Lesser jams at highways owing to lesser congestion on roads
  • Vehicles will be more secure and safe as they will always be tracked by the GPS
  • In case of thefts, owners can easily find out the location of their vehicles due to easy tracking by GPS

Challenges faced by the Government while implementing a GPS-based toll collection system

The Government is facing its own set of challenges while implementing a GPS based toll collection system. We have listed a few of them below-

  • With the implementation of GPS based toll collection system, the toll amount will be deducted directly from the savings account of the user unlike FASTag, using which the toll tax amount gets deducted from the payment wallet. This will lead to increased serious cyber crimes
  • FASTag is free for users travelling within the area of 5km of toll plazas. However, it is not sure of how much amount will be charged by the GPS based toll collection system

Is There a Difference Between GPS-Based Toll Collection and FASTag?

FASTag uses Radio Frequency Identification (RFID) technology for an automatic deduction of toll tax. All you need to do is get this reloadable tag and affix it to the windshield of your vehicle. In addition to this, you need to link your FASTag with your bank account/prepaid wallet for automatic debit of the toll amount. The NHAI, in integration with the banks and online payment platforms, provides FASTags to its users through both, online and offline modes. All toll booths have FASTag scanners that can detect them and deduct the toll tax amount. So, when you travel through a toll road and approach a toll booth, you need not stop for a long duration.

However, GPS-based toll collection will differ from FASTag because it will track you throughout. It will be vigilant of vehicle movement and collect the toll tax through GPS imaging. Automatic deduction in FASTags happens only when you approach the toll plaza. It is speculated that the NHAI may use GPS-enabled FASTags for GPS-based toll-tax collection.

GPS-based toll collection will be a milestone in the use of technology, digitalization, and smooth travelling. It will save time for the drivers and travelers as neither they will have to wait in long queues nor will they have to stop at every toll booth. They can make payments at once through online platforms. However, privacy remains a concern if the government tracks the entire movement of vehicles. As the GPS-based toll collection is still in the development stage, we are yet to see its pros and cons. For now, FASTag is mandatory and facilitates electronic toll payment in the best possible way. This also helps in smooth, non-stop driving to save time without having to stop at pesky toll plazas.


Is FASTag GPS enabled?

No, FASTag is not GPS enabled. It uses RFID technology for electronic payment and does not track vehicle movement.

What if I don't have FASTag?

FASTag has been made mandatory from 15 February 2021. If you fail to have a FASTag affixed on your four-wheeled vehicle, you may have to pay a fine, potentially double the toll amount.

Why is GPS-based toll collection introduced when there is FASTag already?

GPS-based toll collection is introduced to eliminate physical toll booths and prevent toll tax theft/GST evasion by vehicles without FASTags or those taking alternate routes.

What are some challenges of implementing a GPS-based toll collection system?

Challenges include determining toll charges within a 5km radius of toll plazas and ensuring secure deduction of toll tax from users' savings accounts to prevent cyber crimes.

What are the costs associated with implementing a GPS-based toll collection system?

Implementing a GPS-based toll collection system involves costs such as installing GPS trackers in vehicles and maintaining/replacing their batteries.

How can a GPS-based toll collection system help reduce traffic congestion?

A GPS-based toll collection system can help reduce traffic congestion by eliminating toll plazas and allowing vehicles to pass through without stopping, thus preventing traffic jams.

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