E-WAY BILL Prepared by : CA Mahendra Kotadiya CA Jagdish Vaishnav

Transcription

1 E-WAY BILL Prepared by : CA Mahendra Kotadiya CA Jagdish Vaishnav

2 Why Centralise E-Way Bill required? Unique Selling Proposition (USP) of Goods and Services Tax is Nation- One Tax One Market. One Introducing a separate way bill for each State under the GST system would definitely complicate the compliance and in turn affect the business of the taxpayers and transporters. Such a system of separate e-way Bill for each State would result in hindrance of movement of goods and free trade from one State to another. The State and Central Government officers will also find it difficult to cross-verify such e-way Bills if generated independently by each State.

3 OBJECTIVES One e-waybill for movement of the goods throughout the country Hassle free movement of goods for transporters throughout the country Controlling the tax evasion No need for Transit Pass in any state Easier verification of the e-waybill by officers with complete details

4 BENEFITS Average waiting time at check-post reduces drastically Scope for corruption eliminated in office or at checkposts. Self-policing by traders. A trader while uploading gives the identification of the buying trader who also has to account the transaction. Environment friendly nearly 50 tons of paper saved per day. An accurate database created-useful for tax analysis. Revenue growth will be more than normal

5 LEGAL FRAMWORK BEHIND E-WAYBILL?? Sec. 68: Inspection of goods in movement. (1) The Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding fifty thousand rupees as may be specified to carry with him such documents and such devices as may be prescribed. (3) Where any conveyance referred to in sub-section (1) is intercepted by the proper officer at any place, he may require the person in charge of the said conveyance to produce the documents prescribed under the said sub-section and devices for verification, and the said person shall be liable to produce the documents and devices and also allow the inspection of goods.

6 EFFECTIVE DATE Inter-State: 1 st February 2018 Intra-State for Gujarat: 1 st February 2018 (Notification No. 74/2017 State Tax dt )

7 RULE 138 (1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees (i) in relation to a supply; or (ii) for reasons other than supply; or (iii) due to inward supply from an unregistered person shall, before commencement of such movement, furnish information relating to the said goods in Part A of FORM GST EWB-01, electronically, on the common portal

8 LIABILITY TO PREPARE (WHO HAS TO PREPARE??) CONSIGNOR CONSIGNEE WHO HAS TO PREPARE Registered Registered Unregistered Unregistered Registered Unregistered Registered Unregistered Consignor/Transporter Consignor/Transporter Consignee/Transporter Not to be prepared

9 HOW TO DETERMINE CONSIGNMENT VALUE?? How to determine consignment value of goods in cases other than supply? Explanation 2 - For the purposes of this rule, the consignment value of goods shall be the value, determined in accordance with the provisions of section 15, declared in an invoice, a bill of supply or a delivery challan, as the case may be, issued in respect of the said consignment and also includes the Central tax, State or Union territory tax, integrated tax and cess charged, if any, in the document.

10 INTER-UNIT?? Whether an e-way bill is required to be generated for movement of goods from one unit of the company to another unit? Yes. Because e way bill required for not only in case of supply but also for movement of goods.

11 INTERSTATE MOVEMENT FOR JOBWORK?? Whether e-way bill is required to be generated for interstate movement of goods of value below 50,000 for the purpose of job work? Yes, As per first proviso to rule 138(1), E way bill shall be generated by principal irrespective of value of goods in case of goods send for the purpose of job work in different state.

12 3 rd Proviso to Rule 138(3) 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 the consignor to the place of business of the transporter for further transportation, the supplier or the recipient, or as the case maybe, the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01. Hence, they need not file Part B (Vehicle No.) of E Way bill but require to file PART A

13 Relaxation from filling detail in part B of EWB 1 Less than 10 kms Consigner Transporter Need not to file Part B Less Than 10kms Consignee

14 MULTIPLE INVOICES?? If goods are supplied in same truck, whether e-way bill would have to be generated even if value of each invoice individually is less than the threshold limit of INR 50,000/- but overall it crosses INR 50,000/-? Each invoice is regarded as a separate consignment. Hence,Eway bill is not required. However, the term consignment covers all the goods stated in a single LR. Hence it is advisable to have multiple LR s in such case to avoid trouble.

15 MULTIPLE INVOICES?? Where multiple invoices are generated on the same customer to be supplied through a same truck. Whether multiple E-way bills must be generated or one e-way bill shall suffice? Each invoice is regarded as a separate consignment. Hence E- way bill to be generated for every invoice. Hence multiple invoices cannot be clubbed. The transporter has an option to generate consolidated E-way Bill.

16 GOODS DISPATCHED IN SKD OR CKD CONDITION?? How to generate the e-way bill, if the goods of one invoice are being moved in multiple vehicles simultaneously in a SKD or CKD condition? Quoting same invoice number, multiple E-way bills can be generated. It must be noted that separate delivery challan should be issued for each vehicle and co-relate with original invoice. However copy of invoice must be provided with every vehicle.

17 MULTI-MODAL TRANSPORTATION?? In case of multimodal transport, where for first mile it is required to generate an e- way bill for road, second, mile by train and last mile by road. These transporters could be same service providers or different service providers. How to generate an e-way bill in this situation? Part B which contains details of conveyance needs to be updated every time there is a change in conveyance. In case of multiple transporters, there is facility wherein the transporter initially assigned can re-assign to another transporter after filling part B. Assigned transporter has to keep on updating vehicle number in part B whenever there is any change in mode or conveyance.

18 REJECTION/SALES RETURN OF GOODS?? What should be done by the transporter if consignee refuses to take goods or rejects/sales return the goods for quality reason? Transporter can generate E-way bill. Movement can be done on the basis of credit note issued by supplier. Please select sales return in the nature of movement.

19 IMPORTS?? Whether e-way bill is required to be generated in case of goods imported on port of another State and customs cleared from there taken to own warehouse in home State? Yes, E-way bill is to be generated by selecting inward import along with Bill of Entry from an unregistered person.

20 BILL TO/SHIP TO?? How to generate E-way bill in a bill to/ship to transaction? Supplier should generate E-way bill in the name of recipient as goods are to be physically sent to him. Validity shall also be calculated accordingly. In the name of recipient, one can write C/o buyer so that the case can be explained to the inspecting officer to reconcile it with invoice. This is possible only if bill to party & ship to party is outside the State. If bill to party is within the State & ship to party is outside the State above solution may not work as portal will calculate IGST on the basis of ship to party when in fact as per law, CGST + SGST is applicable. In such case, two E-way bills must be generated, one by supplier showing bill to party as recipient and second by bill to party showing ship to party as recipient. Government will have to create a separate category for generation of E- way bill as above proposed solutions are not foolproof.

21 Bill to and ship to both are outside the state

22 Bill to Mumbai and Ship to Ahmedabad

23 GOODS OUTSIDE GST?? Whether e-way bill is required to be generated to remove goods which are outside the scope of GST i.e. petrol, diesel, alcoholic liquor etc.? No, as even on detention, GST cannot be demanded. Movement will be governed under the State VAT Laws. Said goods have been mentioned in Rule 138(14) and hence shall not require E-way bill.

24 TRANSPORTOR S DUTY RULE 138(7) Where the consignor or the consignee has not generated FORM GST EWB-01* in accordance with the provisions of subrule (1) and the value of goods carried in the conveyance is more than fifty thousand rupees, the transporter shall generate FORM GST EWB-01* on the basis of invoice or bill of supply or delivery challan, as the case may be, and may also generate a consolidated e-way bill in FORM GST EWB-02* on the common portal prior to the movement of goods.

25 Issue : Is transporter liable to generate E-way bill even if individually value of consignment is less than INR 50,000? In our opinion, sub-rule (7) comes into play only of E-way bill is not generated in accordance with sub-rule (1). Hence if individually value of consignment is less than INR 50,000/-, E- way bill is not required.

26 VALIDITY OF E-WAY BILL Sr. no. Distance Validity period 1. Upto 100 km One day 2. For every 100 km or One additional day

27 Time Start from? For the purposes of this rule, the relevant date shall mean the date on which the e-way bill has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as twenty-four hours. Provided further that where, under circumstances of an exceptional nature, the goods cannot be transported within the validity period of the e-way bill, the transporter may generate another e-way bill with new address of departure of conveyance.

28 CALCULATION OF DISTANCE & VALIDITY?? For the purpose of calculation of distance and validity, does it needs to be checked from the date and time of generation of individual e-way bill or whether the same needs to be calculated from the time of generation of consolidated e-way bill? Distance and validity shall be calculated on the based of individual E-way bill. Consolidated E-way bill does not have an independent validity. It merely consolidates multiple E-way bills.

29 CANCELLATION OF E-WAY BILL RULE 138(9) Where an e-way bill has been generated under this rule, but goods are either not transported or are not transported as per the details furnished in the 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 the 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 rule 138B

30 EXCEPTIONS E-WAY BILL NOT REQUIRED All exempted goods stated in Notification No. 2/2017-(Rate) Goods stated in the Annexure (e.g. Currency, Jewellery, used personal & household effect) Goods are being transported by a non-motorised conveyance Goods are being transported from the port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs Movement in notified areas Where the goods being transported are alcoholic liquor for human consumption, petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas or aviation turbine fuel

31 DOCUMENTS & DEVICES TO BE CARRIED RULE 138A INVOICE OR DELIVERY CHALLAN OR BILL OF SUPPLY AND E-WAY BILL OR E-WAY BILL NO.

32 INSPECTION & VERIFICATION

33 Penalty : E-way Bill not prepared Sec-129 Owner Come forward for Payment Yes No Taxable goods Applicable Tax & 100% Penalty of Tax payable Exempt ed goods 2% of value of goods or WE less Applicable Tax + penalty 50% of value of Goods reduced by Tax paid there on Exempted 5% of value or WEL

34 Thank you