E-way bill under GST

By Registrationwala

18th May 2017

 

E-way bill i.e. Electronic Way Bill is a bill which is generated by GST-Network (GSTN) website when goods worth more than Rs 50,000 are moving (even if such movement is not a supply).  Under GST, prior online registration of the consignment is required and which is securing an 'e-way bill' that tax officials can inspect anytime during the transit to check tax evasion. An e-way bill that will be valid for 1-15 days, depending on distance to be travelled - one day being for 100 km and 15 days for more than 1,000 km transit. The Central Board of Excise and Customs (CBEC) has issued draft rules on e-way bill that require registered entities to furnish information relating to any goods worth more than Rs 50,000 they intend to move within a state or outside in a prescribed format as follows:-

 1. Before commencement of movement of goods following information should be furnished in:

Part A of FORM GST INS-01 by registered person, who causes movement of goods before such movement, where:

  • Consignment value exceeds Rs. 50,000 (even if such movement is not a supply)
  • In cases where a registered person purchases goods from an unregistered person

In case a registered person uploads a tax invoice issued by him in FORM GST INV-1, the aforesaid information in Part A of Form GST INS-01 will be auto populated and it shall be used for preparing GSTR-1.

2. Generation of e-way bill:

  • The registered person i.e. a consignor or the recipient of supply i.e. a consignee shall furnish the information in Part B of FORM GST INS-1 and then generate the e-way bill in FORM GST INS-1.
  •  Where the e-Way bill is not generated in the aforesaid manner either by the registered person or the recipient and the goods are handed over to a transporter, the registered person shall furnish the information relating to the transporter in Part B of FORM GST INS-1 and transporter shall generate the e-way bill If, required information is not submitted by the consignor as required, the transporter shall generate the e-way bill on the basis of invoice/ bill of supply or the deliver challan.

Upon such generation of e-way bill, a unique e-way bill number (EBN) will be made available to supplier, recipient and to the transporter according to the draft rule.

3. Option to generate and carry the e-Way bill

  • E-way bill can be generate and carry by the registered person or transporter may at his option even if the value of consignment is less than Rs. 50,000.
  • When the movement of goods is caused by unregistered person to an unregistered person, he or the transporter may at their own option,generate the e-way bill.

4. Communication of details of E-Way bill to recipient, if he is registered:

  • In case of registered recipient, the details of e-way bill will be communicated to the recipient and on receipt of the aforesaid communication, communicate his acceptance or rejection of the consignment covered by the e-way bill.
  • However in case of non-communication up to 72 hours, it will be assumed the acceptance the consignment.

 The invoice or bill of supply or delivery challan, and a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device (RFID) embedded on to the conveyance in such manner as may be notified by the Commissioner will be required to carry by the person in-charge of conveyance. At places where verification of movement of goods is required to be carried out and verification of movement of vehicles shall be done through such RFID readers the Commissioner shall get RFID readers installed where the e-way bill has been mapped with RFID. They also will be required to give description of the goods, its valuation and weight. As per the rule, physical verification of conveyances can be carried out if department has doubt relating to evasion of tax. A summary report in  Part A of FORM GST INS - 03 of every inspection of goods in transit within 24 hours and the final report Part B of FORM GST INS - 03 within three days of inspection will be submitted by the officer. The transporter may upload the said information in FORM GST INS- 04 on the common (GSTN) portal when a vehicle has been intercepted and detained for a period exceeding 30 minutes.

This provision will act like two with one stone attack because now scope of the tax officer intercepting the vehicle will increase, but at the same time it will give opportunity to the transporter to file complaint. When this rule is applicable the tax commissioner or an officer authorized by him on his behalf to intercept any conveyance to verify the e-way bill or the number in physical form for all inter-state and intra-state movement of goods. These e-way bills will also use for self-check and every registered supplier will have to give prior-information to the government about the location of goods to be transported, which will also be re-confirmed by the transporter.  Although what documents will have to be filled in the bill is not specified by the draft e-way but may be the consigner will have to give the name and address of both the sender and receiver of the goods. 

Audit and assessment

Assessees would be expected to furnish their response within 15 days in case of a query raised during scrutiny or audit of their GST returns, according to the draft rules for audit and assessment. The rules also propose that for provisional assessment of tax the registered taxpayer can request for a payment of tax on a provisional basis through application Form GST ASMT-01 either electronically on the GSTN or directly through a facilitation centre notified by the Commissioner.

Electronic way bills may be the check for people dealing in black markets or in the unorganized sector.
 

 

E-way bill under GST

2017-05-18