GST E-Way Bill 2018 Major Hurdle in Ease of Doing Business. Electronic-Way Bill 2018 Detailed Analysis…Draft rules were put on the public domain. Undoubtedly concept is very good but the way it has been drafted, it will defeat the purpose of “Ease of Doing Business”. The salient features of draft are given below:
E-way bill to be generated for any movement of goods, whether by own transport or any modes of transport irrespective of tax invoice against taxable supplies or Bill of supply for exempted goods / non-taxable goods or delivery challan without invoice for movement of goods from one location to another location within the state of the same entity or delivery challan for job work. It should be generated in Part A and endorsed in Part B by the transporter / recipient of supplier as a consignee. Of course, it is for the movement of goods valued more than Rs 50,000/-. However, valuation will always require to be determined before movement of the goods.
GST E-Way Bill 2018 Major Hurdle in Ease of Doing Business
The Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding the prescribed amounts, to carry with himself such documents and devices as may be prescribed.
Where any such conveyance is intercepted by the proper officer, he may require the person in charge of the conveyance to produce the documents & devices for verification and that person then has the duty to cooperate and allow the inspection.
It is for the same reason that Electronic Way Bills (E-way bills) have been prescribed.
CGST Rules, 2017 stipulates as under, with regard to E- Way Bills:
Every registered person who causes movement of goods of consignment value greater than Rs. 50,000 whether for supply or otherwise or due to the inward supply from an unregistered person, shall before commencement of such movement, furnish the necessary information in the prescribed form, electronically on the portal.
Where the E-way bill hasn’t been generated and the consignment is handed over to a transporter, the transporter will generate the E-way bill on the basis of information furnished on the portal by the registered person. Upon the generation of the E-way bill, a unique E-way bill number (EBN), is generated and made available to the supplier, the recipient and the transporter. Where multiple consignments are being carried, a transporter may also generate a consolidated E-way bill.
The E-way bill so generated is valid for one day if the distance involved is less than or equal to 100 kms, and one additional day for every 100 kms over and above.
When to be generated
- Movement of goods by registered person (including inward supply from unregistered person) having value exceeding Rs.50,000/- to be updated electronically in Part A of FORM GST INS-01 on common portal and generation of e-way bill before movement of goods.
- Details furnished in Part A of FORM GST INS-01 will be available for furnishing details in GSTR-1
- E-way bill can be generated and carried even if value of the consignment is less than Rs.50,000/- (optional)
- New E-way bill needs to be generated if goods are transferred from one conveyance to another in the course of transit by the transporter
- Consolidated e-way bill in FORM GST INS-02 to be generated by the Transporter when multiple consignments are intended to be transported in one conveyance
- SMS facility will be available for generation and cancellation of e-way bill
- Recipient of goods to confirm his acceptance / rejection on common portal within 72 hours, failing which it will be assumed to be accepted
- Cancellation of e-way bill is possible within 24 hours of generation, except when been verified in transit..
Manner of issue of E-way Bill
E-way will be generated in FORM GST INS-1 with a unique e-way bill number (EBN) as under:
|Particulars||Information to be furnished in||E-way bill to be generated by|
|Goods are transported by registered person as a consignor (whether in his own conveyance or a hired one)||Part B of FORM GST INS-01||Registered person as a consignor|
|Goods are handed over to a transporter||Part B of FORM GST INS-01||Transporter|
|Movement is caused by an unregistered to a registered recipient who is known at the time of commencement of movement of goods (in his own conveyance or a hired one or through a transporter)||Recipient of supplyas the consignee|
|Movement is caused by an unregistered person – other case(in his own conveyance or a hired one or through a transporter)||Unregis – tered person or Transporte|
Validity of E-way Bill
Validity shall be as under from the date of generation, subject to extension allowed by the Commissioner:
|Sr. no.||Distance||Validity period (days)|
|1.||Less than 100 km||1|
|2||100 km or more but less than 300km||3|
|3||300 km or more but less than 500km||5|
|4||500 km or more but less than 1000km||10|
|5||1000 km or more||15|
Movement of Goods:
- Documents to be carried by the person-in-charge of conveyance:
- invoice or bill of supply or delivery challan
- copy of the e-way bill or the e-way bill number – physically or mapped to a Radio Frequency Identification Device (RFID) embedded on to the conveyance
- Commissioner to specify situations in which the person-in-charge of conveyance will 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 other than by way of supply
- Invoice Reference Number to be generated from the common portal against tax invoice uploaded in FORM GST INV-1 which will be valid for a period of 30 days
- Information in FORM GST INS-01 shall be auto populated based on FORM GST INV-1
- Transporters, as specified, to obtain a unique RFID and get the said device embedded on to the conveyance and map the e-way bill to the RFID prior to the movement of goods
- RFID readers will be installed at places where verification of movement of goods is required to be carried out
- Officers may be authorised by Commissioner to stop the conveyance to verify the e-way bill / number for inter-state / intra-state movements
- If a vehicle is stopped / detained for a period exceeding 30 minutes, the transporter will upload the information in FORM GST INS-04.
- Physical verification of conveyances in case where information is received for evasion of tax and too once during transit unless specific information is received which warrants another verification
- Details of inspection and verification to be furnished online in Part A of FORM GST INS – 03 within 24 hours of inspection and final report in Part B of FORM GST INS – 03 to be recorded within 3 days of inspection
- Whether all the transporters in the organized sectors and unorganized sectors will be equipped not only for generation / endorsement or consolidation for following the procedure mentioned above?
- Whether Inspector Raj through intercepting vehicles will come back? Why it is necessary for intra-state supplies?
- Why simple system is not suggested rather than so complex system?
- Trade & Industry will suffer heavily and hence such type of way bill should only be enforced for inter-state supplies.
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