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E-Way Bill under GST

As we all know, E-Way Bill System has been postponed up to March 2018. This timeline can be or can’t be extended. But we have to prepare our self for this system of way bill as sooner or later we have to adopt it. Everything about eWay Bill in GST is as follows:-

1. Introduction:-

Recently, the Central Government has issued the notification number 27/2017, dated 30/08/2017 wherein it has brought Rule 138 for E-Way Bill in public domain. E-way Bill is an electronic way bill which is required to be carried by a person in charge of the conveyance; for movement of goods from one place to another place within the State or outside the States. The e-way bill mechanism has been used in GST to prevent inter-State or intra-State movement of goods without payment of GST.

The Central Board of Excise and Customs (CBEC) has proposed a GST e-way bill in the event of transiting of goods above INR 50,000 under the GST regime. This will ask for online registration of goods consignment and this will give the tax authorities a right to inspect the element anytime if suspected of a tax evasion. The board has issued a draft rule over the Electronic way (e-way) billing which requires registered entities to upload in a prescribed format on the GSTN officials website the details of the concerned goods or commodities which they wish to move in or out of the State.

In this, the GSTN will create e-way bills which would be valid for a period of 1-15 days on the condition of distance travelling in which one day is considered as 100 km and 20 days for more than 1,000 km in transit. The draft rules state that “Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.”

2. GST E-Way bill Validity period according to the distance:-

S. No                                 Distance
1.                                        Less than 100 km 1 Day
2.                                       100 km or more but less than 300 km 3 Days
3.                                       300 km or more but less than 500 km 5 Days
4.                                       500 km or more but less than 1000 km 10 Days
5.                                       1,000 km or more 20 Days

3.  Who has to issue E-Way Bill:-

Every registered person who causes movement of goods and consignment of goods and consignment value exceeds Rs. 50,000 shall furnish information in PART A of FORM GST EWB-01. Upon generation of e-way bill on the common portal, a unique E-Way Bill number (EBN) shall be made available to the registered supplier on common portal who may utilize the same for furnishing details in Form GSTR-1, Provided that when the information has been furnished by an unregistered supplier in Form GST EWB-01, he shall be informed electronically if the mobile number or the e-mail is available.

4. Generation of E-Way Bill:-

– Where goods are transported by registered person as a consignor of goods or the recipient of supply as consignee (Registered Person) whether in his own conveyance or a hired one or by railways, by air or by vessels, the said person or recipient will electronically generate an e-way bill after furnishing information related to conveyance in PART B of Form GST EWB-01.

– Where a supply is made by an unregistered person to a registered person, the movement is deemed to have caused by a registered recipient and liability to generate e-way bill lies on recipient, i.e., the receiver will have to ensure that all the compliances are met as if he was the supplier.
– Where e-way bill is neither generated by consignor nor by consignee and the goods are handed over to a transporter for transportation by road, then transporter shall generate FORM GST EWB-01 on the basis of invoice or bill of supply or delivery challan and may also generate consolidate e-way bill in FORM GST EWB-01 prior to movement of goods.

5. Points to be remembered:-

– The e-way bill generated under this rule or under rule 138 of Goods and Services Tax Rules of any State shall be valid in every State and Union territory.
– Utilization of E-Way Bill in Form GSTR-1: Registered supplier may utilize the information furnished in Part A of FORM GST EWB-01 for furnishing details in FORM GSTR- 1.
– E-way bill will also be allowed to be generated or cancelled through SMS.
– The facility of generation and cancellation of e-way bill may also be made available through SMS.
Procedure of E-way bill: When to issue E-way Bill- Information to be furnished prior to commencement of movement

6. Before commencement of movement of goods in Part A of FORM GST EWB-01:-

♦ GSTIN of Recipient
♦ Place of Delivery (PIN Code only)
♦ Invoice or challan no.
♦ Invoice or challan date
♦ Value of Goods
♦ HSN Code (2 digits for PY turnover upto 5cr and 4 digits for PY turnover more than 5 cr)
♦ Reason for Transportation (Any one of these: supply, export or import, job work, SKD or CKD, Recipient not known, Linesales, Sales return, exhibition or fairs, for own use or others).
♦ Transport Document No (Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number).
♦ Documents & Devices

7. The person in charge of a conveyance shall carry:-

♦ The invoice or bill of supply or delivery challan; and
♦ A copy of e-way bill or the e-way bill number either physically or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.
The Commissioner may, by notification, require the person-in-charge of conveyance to carry the following documents instead of the e-way bill-

– tax invoice or bill of supply or bill of entry; or
– A delivery challan, where the goods are transported for reasons other than by way of supply.

8. Invoice Reference Number:-

Where the registered person uploads the invoice under sub-rule (2), a registered person may obtain an Invoice Reference Number from the common portal by uploading on the said portal tax invoice issued by him in FORM GST INV- 1 and produce the same for verification by proper officer in lieu of the tax invoice. Such number shall be valid for a period of thirty days from the date of uploading. FORM GST EWB-01 shall be auto-populated by the common portal on the basis of the information furnished in FORM GST INV-1.

9. Whether consignor or consignee is allowed to Voluntarily generate E-way bill:-

♦ In case of consignor to consignee transportation, any of them may generate E-way bill and before that they also have to provide conveyance details in Part B of FORM GST EWB-01 which was not required by registered person in normal course.
♦ If they don’t generate E-way bill and goods are handed over to a transporter for transportation by road then consignor or consignee is required to provide conveyance details in Part B and furnish details in Part A and after that Transporter Shall generate E-way Bill on the basis of info provided by consignor or consignee in Part A.
♦ Where the consignor or the consignee has not generated FORM GST EWB-01 the transporter shall generate FORM GSTEWB-01 on the basis of invoice or bill of supply or delivery challan, as the case may be. He voluntarily may also issue consolidated Eway bill in FORM GST EWB-02 prior to the movement of goods.
♦ Yes, e-way bill can be generated voluntarily even if not mandatorily required in law.
♦ If person is unregistered and the goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of the movement of goods.
♦ If Consignment value is upto Rs.50,000
♦ If goods are transported for a distance of less than ten kilometres within the State or Union territory from the place of business of the consignor to the place of business of transporter for further transportation, the supplier or the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01. They are not exempt from furnishing Part A.

10. Updation of E-Way Bill in case of multiple consignments:-

– Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, update conveyance details in E-way bill.
– Provided that where the goods are transported for a distance of less than ten kilometers within the State or Union territory from the place of business of transporter finally to the place of business of consignee, the details of conveyance may not be updated in the e-way bill.
– Under circumstances of an exceptional nature, goods cannot be transported within the validity period of e-way bill, the transporter may generate another e-way bill after updating the details in Part B of FORM GST EWB-01.
– In case of multiple consignments, e-way bill is required to be issued for each consignment in FORM GST EWB-01 and if he wants he voluntarily can issue a consolidated E-way bill too in FORM GST EWB-02 prior to movement of goods.
Acceptance of GST E-way Bill

11. The generated e-way bill gets acceptance in the following cases:-

♦ The consignment of available e-way bill is accepted by the recipient who is registered on common portal.
♦ In case the recipient doesn’t respond to the available E-way bill details within 72 hours, then it is considered that the e-way bill is accepted by the recipient.
♦ The E-way bill does not need consent in the following cases and is considered to be accepted.
♦ If the goods transportation comes under Annexure of Rule 138(14).
♦ When the mode of transfer is non-motorised conveyance
♦ If the goods are transported to inland container port or a freight station for customs clearance from the airport, air cargo complex and the port.
♦ If the movement of Goods is to the concerned areas of the States covered under clause(d) of sub-rule (14) of rule 138 of the GST.
Validity for cancellation of E-Way Bill

12. Where an e-way bill has been generated under this rule, but goods are either transported or not transported as per the details furnished in e-way bill, the e-way bill may be cancelled electronically on the common portal, either directly or through a Facilitation Centre notified by the Commissioner within 24 hours of generation of e-way bill; provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule138B.

S. No. Distance Validity
1. Upto 100 km 1 Day
2. For every 100 km or part thereof thereafter 1 additional day
The e-way bill generated under this rule or under rule 138 of the Goods and Services Tax Rules of any State shall be valid in every State and Union territory. The Commissioner can extend the validity period mentioned above.

13. Optional Compliance of E-Way Bill:-

– A registered person or the transporter may generate at his option and carry e-way bill even if the value of consignment is less than Rs. 50,000/-
– Where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate e way bill in FORM GST EWB-01. However, where a supply is made by an unregistered person to a registered person, then the movement is deemed to have caused by a registered recipient and liability to generate e-way bill lies on to recipient, i.e, the receiver will have to ensure all the compliances are met as if they were the supplier.
– Where the goods are transported for a distance of less than 10 km within the State or Union territory from the place of business of consignor to the place of business of transporter for further transportation, the supplier or transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01. However, Part A has to be filled.
Items Exempted from Listing under GST E-way Bill

14. The Central Government has recently announced a list of particulars which are totally exempted from the e-way bill provision under GST. These items are considered as common use items and are exempted from the necessity of having an electronic permit for the transportation under the GST scheme. According to goods and services tax, it is mandatory to have a permit, i.e., E-way bill for transportation of consignment with value more than Rs 50,000 in order to check tax evasion practices. But in a GST Council meeting on August 5, they announced a list of 153 products which are totally exempted from having any sort of e-way bill while transportation.

The list which is exempted from the e-waybill includes some of the items like: LPG, Kerosene, Jewellery, Currency, Live Bovine Animals, Fruits and Vegetables, Fresh milk, Honey, Seeds, Cereals, Flour, Betel Leaves, Raw Silk, Khadi, Earthen Pot, Clay Lamps, Pooja Samagri, Hearing Aid, Human Hair, Frozen Semen, Condoms, Contraceptives.

15. Conclusion:-

After the implementation of e-way bill, any transportation of goods of more than Rs.50,000 require an e-way bill mentioning the details of shipment, vehicle registration number and driver information for that particular consignment. It will be almost impossible for delivery operators to provide vehicle number and driver information in advance, as these things are usually decided in real-time depending on the availability. While the rules will ensure that a common form is applicable across India, GST e-way bill is still facing some issues. Now the center has stated that the e-way bill will be under hold as of now in order to clear some more rules and regulation over this crucial bill.

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