CA Parth Shah

♣ Implementation of E-Way Bill

  • Inter State (between 2 or more states) – Effective from 01.02.2018
  • Intra State (within the state where the goods originated) – Voluntary up to 31.05.2018 otherwise mandatory from 01.06.2018

♣ Meaning Of E-way Bill (Rule 138(1)

  • EWB will be required for transporting any consignment value more than Rs. 50,000. It is required even in case of purchase of goods from unregistered person (URD) by Registered Person.

– E-way bill is applicable where any movement of goods value exceeding Rs 50000/- is: –

  • In relation to Supply, whether of taxable or non taxable goods
  • For reason other than Supply (Ex: -Branch Transfer within State, Job Work, Consignment, etc)
  • Inward Supply from URD

– What is Consignment Value :

  • 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.

♠ Mandatory to Generate E-Way Bill in following cases:-

1. Principal to Job Worker

– Provided that where goods are sent by a principal located in one State to a job worker located in any other State, the e-way bill shall be generated by the principal irrespective of the value of the consignment

2. Handicraft Goods (Notification No. 32/2017 of Central Tax)

– Provided further that where handicraft goods are transported from one State to another by a person who has been exempted from the requirement of obtaining registration under clauses (i) and (ii) of section 24, the e-way bill shall be generated by the said person irrespective of the value of the consignment.

♠ Exemption from Generating of E- Way Bill (Rule 138(14)

(a) where the goods being transported are specified in Annexure;

(b) where the goods are being transported by a non-motorized conveyance;

(c) where the 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;

(d) in respect of movement of goods within such areas as are notified under clause (d) of sub-rule (14) of rule 138 of the Goods and Services Tax Rules of the concerned State;

(e) 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; and

(f) where the goods being transported are treated as no supply under Schedule III of the Act.

♠ Persons Liable For E-way Bill

  • Registered Person– E-way bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a Registered Person. A Registered person or the transporter may choose to generate and carry e-way bill even if the value of goods is less than Rs 50,000.
  • Unregistered Persons– Where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier.
  • Transporter– Transporters carrying goods by road, air, rail, etc. also need to generate e-Way Bill if the supplier has not generated an e-Way Bill.
Case Will E-way Bill be generated? Who will generate?
Supplier and Recipient both are registered Yes Supplier/Recipient
Supplier is registered and Recipient is unregistered Yes Supplier
Supplier is unregistered and Recipient is registered Yes Recipient
Suplier and Recipient both are unregistered No

♠ Validity Of E-way Bill (Rule 138(10))

  • An e-way bill is valid for periods as listed below
Distance Validity of EWB
Less Than 100 Kms 1 Day
For every additional 100 Kms or part thereof additional 1 Day

– Under circumstances of an exceptional nature, if the goods cannot be transported within the validity period of an e-way bill, the transporter can generate another e-way bill after updating the details in Part B of FORM GST EWB-01.

  • 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

♠ Rules For Transporter

– Rule 138(5)

  • If a transporter is transferring goods from one conveyance to another during the course of the transit, then the consigner or the recipient must update the details of the new conveyance in the e-way bill already generated on the common portal in the FORM GST EWB-01, before such transfer takes place.

Provided further  that if the goods are being transported  for a distance of ten kilometers or less, within the same State or Union territory as the place of business of the transporter to the place of business of consignee, the details of conveyance need not be updated in the e-way bill.

– Rule 138(6)

  • Where a transporter is moving more than one consignment in one conveyance, he must indicate the serial number of e-way bills for each consignment electronically on the common portal. A consolidated e-way bill in Form GST EWB-02 may be generated before the movement of goods.

– Rule 138(7)

  • Where the consignor or the consignee has not generated FORM GST EWB-01 in accordance with the provisions of sub-rule (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 maybe, and may also generate a consolidated e-way bill in FORM GST EWB-02 on the common portal prior to the movement of goods:

♠ Acceptance or Rejection under Rule 138(11) and (12)

– Rule 138(11)

The details of e-way bill generated under sub-rule (1) shall be made available to the-

(a) supplier, if registered, where the information in Part A of FORM GST EWB-01 has been furnished by the recipient or the transporter; or

(b) recipient, if registered, where the information in Part A of FORM GST EWB-01 has been furnished by the supplier or the transporter,

on the common portal, and the supplier or the recipient, as the case maybe, shall communicate his acceptance or rejection of the consignment covered by the e-way bill.

– Rule 138(12)

Where the person to whom the information specified in sub-rule (11) has been made available does not communicate his acceptance or rejection within seventy two hours of the details being made available to him on the common portal, it shall be deemed that he has accepted the said details.

♠ 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 Center notified by the Commissioner, within 24 hours of generation of the e-way bill.

However, an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B of the CGST Rules, 2017 .

♠ Exemption from Generating of E- Way Bill (Rule 138(14)

(a) where the goods being transported are specified in Annexure;

(b) where the goods are being transported by a non-motorized conveyance;

(c) where the 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;

(d) in respect of movement of goods within such areas as are notified under clause (d) of sub-rule (14) of rule 138 of the Goods and Services Tax Rules of the concerned State;

(e) 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; and

(f) where the goods being transported are treated as no supply under Schedule III of the Act.

ANNEXURE

[(See rule 138 (14)]

Sr. No. Description Of Goods
1. Liquefied petroleum gas for supply to household and non domestic exempted category (NDEC) customers
2. Kerosene oil sold under PDS
3. Postal baggage transported by Department of Posts
4. Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal (Chapter 71)
5. Jewellery, goldsmiths’ and silversmiths’ wares and other articles (Chapter 71)
6. Currency
7. Used personal and household effects
8. Coral, unworked (0508) and worked coral (9601)”;

♠ Forms of E-way Bills

EWB-01

  • 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.
  • Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one or by railways or by air or by vessel, the said person or the recipient may generate the e-way bill in FORM GST EWB-01 electronically on the common portal after furnishing information in Part B of FORM GST EWB-01.
Part-A
A1 GSTIN of recipient
A2 GSTIN of Supplier
A3 Place of delivery
A4 Invoice or Challan Number
A5 Invoice or Challan Date
A6 Value of Goods
A7 HSN Code
A8 Reason for Transportation
Part-B
B1 Vehicle Number
B2 Transport Document Number

♠ EWB-02 (Details required to generate Consolidated E-Way Bill)

1. Consolidated E-Way Bill No.:

2. Consolidated E-Way Bill Date.:

3. Generator

4. Vehicle No.

♠ EWB-03 (By Proper Officer)

  • A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST EWB-03within twenty four hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such inspection. See format GST EWB 03.pdf

♠ EWB-04 (By Transporter)

Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in FORM GST EWB-04 on the common portal. See format FORM_GST_EWB-04.pdf

♠ Updating E-way Bill

  • Select ‘Update Vehicle No.’ under ‘e-waybill’ option.
  • Check at least one option:
  • E-way bill No.
  • Generated Date
  • Generator GSTIN

Enter following details:

  • Mode of Transport
  • Vehicle No.
  • From Place
  • From State
  • Reason for the transport change
  • Remarks

♠ Rejection of E-way Bill

  • A recipient can accept or reject an e-way bill. An e-way bill will be assumed to be accepted if there’s no communication within 72 hours of the e-way bill being made available to the recipient via the common portal.

♠ Cancellation of E-way Bill

  • Select the ‘Cancel’ under ‘E-waybill’ option.
  • Enter12digite-way bill no.& select go.
  • Particular e-way bill will be displayed.
  • Give suitable reason for cancellation.

♠ Documents to be carried by person-in-charge

  • The person-in-charge of a conveyance must carry 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 RFID (Radio Frequency Identification Device). RFID is embedded on to the conveyance (mode of transport). Details of these will be notified by the commissioner. However, the commissioner may notify person-in-charge to carry the following documents instead of the e-way bill –
  • Tax invoice or bill or supply of bill of entry OR
  • A delivery challan, where goods are transported other than by way of ‘supply’

♠ Consequences of Non-conformance of E-way bill Rules

  • If e-way bills, wherever required, are not issued in accordance with the provisions contained in Rule 138 of the CGST Rules, 2017, the same will be considered as contravention of rules. As per Section 122 of the CGST Act, 2017, a taxable person who transports any taxable goods without the cover of specified documents (e-way bill is one of the specified documents) shall be liable to a penalty of Rs. 10,000/- or tax sought to be evaded (wherever applicable) whichever is greater. As per Section 129 of CGST Act, 2017, where any   person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or    the rules made there under, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure.

♠ Reason For Transportation under E-way Bill

  • E-way bill is to be issued irrespective of whether the movement of goods is caused by reasons of supply or otherwise. In respect of transportation for reasons other than supply, movement could be in view of export/import, job-work, SKD(Semi-Knocked Down) or CKD(Completely Knocked Down), recipient not known, line sales, sales returns, exhibition or fairs, for own use, sale on approval basis etc.

♠ Release of Goods once Detained

  • After due verification, if a vehicle and its contents are detained, the goods therein will be released in any of the following ways:

1. If the owner of the goods comes forward for payment of tax and penalty

> Applicable Tax, plus

> Penalty equal to 100% of the tax payable.

2. If the owner of the goods does NOT come forward for payment of tax and penalty

> Applicable Tax, plus

> Penalty equal to 50% of value of goods.

3. Upon furnishing of security equivalent to the amount payable as under point 1 or 2 above

Format For FORM GST EWB-04

Format For FORM GST EWB-02

Format For FORM GST EWB-03

(The author can be reached at caparth1995@gmail.com)

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Tags : E-way Bill (228) goods and services tax (6504) GST (6105)

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