Electronic Way Bills under GST - A Synopsis
MAY 05, 2017
By Praveen Kashyap, Adarsh Gupta, Amrit Gupta & Shivani Bhasker
SECTION 68 of the CGST Act, 2017, expressly provides for the documents/ devices that the person in charge of a conveyance carrying any consignment of value exceeding INR. 50 thousand should carry while transporting such goods. Pursuant to the above, the government has issued draft E-Way Bill Rules on 14th April 2017 in order to clarify/ substantiate the provisions laid down in this regard.
The introduction of E-Way Bill Rules has come as a surprise for the trade and industry and thus has attracted discouraging response from the public. Unlike the expectations of the industry from GST, the Bill is supposed to put an end to the free mobility of goods under the GST regime and also keep the 'Check Post Raaj' alive.
The registered persons and, especially, the transporters have been saddled with additional compliances required in accordance to the newly introduced bill/ rules pertaining to the movement of goods.
When E-Way Bill is required?
- An e-way bill is required when-
- the consignment value is more than INR 50,000
- the movement (inter/intra state) of goods (taxable/exempted) is in relation to supply
- the movement (inter/intra state) of goods (taxable/exempted) is for reasons other than supply
- Relevant details pertaining to the Supply of the goods shall be required to be furnished under Part A of the GST INS 01. The information so furnished shall be made available to the registered supplier on the common portal and thus may be utilized by such supplier for furnishing details in GSTR-1. This information shall be made available to unregistered person on registered mobile no or email-id.
- Where more than one conveyance is used in the course of movement of goods a separate e-way bill is required for each such conveyance.
- The detail of every e-way bill generated will be available to the registered recipient who shall communicate his acceptance or rejection within 72 hours or else it will be deemed as accepted.
Process of creation of E-way Bill -
- The registered person, whether supplier or recipient, causing movement of goods shall furnish information relating to goods and transporter in part A and B of GST INS 01 before commencement of such movement. Basis above information, e-way bill can be generated electronically in GST INS-01 either by the transporter or the registered person post which a unique e-way bill number (EBN) will be made available to the supplier, the recipient and the transporter on the common portal.
- The aforesaid procedure will not be applicable in the cases where movement of goods is caused by an unregistered dealer either in his own conveyance or through a transporter.The dealer or the transporter at the irruption, can generate e-way bill directly in GST INS-01.
- Where the goods are supplied by an unregistered supplier to a registered recipient, it will be deemed that the movement is caused by such recipient and he will have to perform above mentioned steps.
E-way bill in case of multiple consignment transported through one conveyance
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Case
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Particulars
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Responsibility
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Requirements
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1
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Value of individual consignments exceeding INR 50,000 and separate E-way bill generated
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Transporter
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Consolidated e-way bill in GST INS-02 on the basis of individual e-way bill
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2
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Value of individual consignments less than INR 50,000 but total value of all consignments exceeding INR 50,000
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Transporter
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Individual e-way bill in GSTINR-01 on the basis of invoice and consolidated e-way bill in GSTINR-02
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Circumstances under which e-way bill can be cancelled
Where an e-way bill has been generated, the same can be cancelled electronically within 24 hours of generation if -
- the goods are not being transported or,
- the goods are not being transported as per the details furnished in the e-way bill
What is the validity of e-way bill?
E-way bill generated are valid for the following period from the time at which they were generated
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Sr. no.
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Distance
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Validity period
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1
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Less than 100 km
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1 day
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2
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>= 100 KM but < 300 KM
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3 days
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3
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>= 300 KM but < 500 KM
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5 days
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4
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>= 500 KM but <1000 KM
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10 days
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5
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1000 KM or more
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15 days
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The person in charge of the conveyance shall carry the invoice/bill of supply/delivery challan along with copy of the e-way bill or e-way bill number either physically or mapped to a Radio Frequency Identification Device (RFID).
Other relevant provisions
- The commissioner/empowered officer may authorize proper officer to intercept any conveyance to verify e-way bill number for all inter-state and inter-state movement of goods.
- Where a physical verification has been done during transit at any place in any state, no further verification will be carried out unless specific information of tax evasion is available.
- A summary report and a final report of every inspection of goods in transit shall be recorded online by the proper officer in part A and part B of GST INS 03 within 24 hours and 3 days of inspection.
- Where a vehicle has been intercepted and detained for a period exceeding 30 minutes, then the transporter may upload the said information in GST INS-04 on the common portal.
Conclusion
In light of the fact that every transaction would be routed through GSTN under GST regime and would be under the eyes of the Government, the need of E way-bill is not understood. It appears to be an action against the expectation of the trade and Industry and would surely dent the government promises of GST being a simplified and compliance friendly tax system. With E-way bill, trade would be forced to call GST as "God Save Taxpayers"
(Views expressed are personal and the Author team works with Grant Thornton India LLP.)
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