The E-Way Bill has become applicable since 01-04-2018 vide notification number 15/2018 dated 23-03-2018. In this regard section 68 of the CGST Act requires from the persons in charge of a conveyance to carry with prescribed documents and the same (documents) shall be required to be produced before the proper officer for verification at time of the conveyance intercepted by the Proper Officer. Rules 138 to 138E of the CGST Rules lay down in detail the provisions relating to the E-Way Bill i.e how to generate e-way bill, which documents to be carried with by the in charge of the conveyance etc..
Section 129 of the CGST Act provides for detention, seizure and release of goods and
conveyances in transit while section 130 of the CGST Act provides for the confiscation of goods or conveyances and imposition of penalty.
To ensure uniformity in the implementation of the provisions of the CGST Act across all the field formations in regard of procedure to be followed in case of interception of conveyances for inspection of goods in movement and detention, seizure and release and confiscation of such goods and conveyances, the CBIC GST Policy-Wing issued circulars time to time.
I try myself to compile such notifications and circulars regarding E-Way Bills issued till date 31-03-2020 in this article. The same are reproduced in summary form.
A. List of Notifications and Circulars in regard of E-Way Bill till 31-03- 2020
|1||29-12-2017||74/2017||E-Way bill notified but rescinded by Notification 11/2018 dated 02-02-2018|
|2||02-02-2018||11/2018||Notification No.74/2017 rescinded|
|3||23-03-2018||15/2018||E-Way bill Notified to be effected from 01-04-2018|
|1||13/04/2018||41/2018||Detailed procedure for interception of conveyances. Further amended by by circular 49/2018 and circular 88/2019.|
|2||08/06/2018||47/2018||Whether e-way bill is required in the following cases- (i) Where goods transit through another State while moving from one area in a State to another area in the same State, (ii) Where goods move from a DTA unit to a SEZ unit or vice versa located in the same State.|
|3||21/06/2018||49/2018||Circular 41/2018 amended and further amended by 64/2018|
|4||04/09/2018||61/2018||Storing of goods in godown of transporter|
|5||14/09/2018||64/2018||Penalty in case of minor mistakes occurred in attached documents including E-Way Bill|
|6||31/12/2018||76/2018||Who will be considered as the “owner of the goods‟ for the purposes of section 129(1) of the CGST Act?|
|7||01/02/2019||88/2019||Some Clauses amended of circular 41/2018|
The Circular has been issued to ensure the uniformity all over India in the implementation of the provisions of the CGST Act in regard of interception of conveyances for inspection of goods in movement and detention, seizure and release and confiscation of such goods and conveyances. For this purpose the following instructions have been issued through this circular:
|1.||Powers to the Proper Officer||The Proper Officer may intercept any conveyance for verification of documents and/ or inspection of goods|
|2.||Valid modes to check availability of E-Way Bill Number||An e-way bill number may be available with the person in charge of the conveyance or in the form of a printout, sms or it may be written on an invoice.|
|3.||Electronic Mode to Verify E-Way Bill Number||Logging on to http://mis.ewaybillgst.gov.in or the Mobile App or through SMS by sending EWBVER <EWB_NO> to the mobile number 77382 99899 (For e.g. EWBVER 120100231897).|
|4.||When inspection order may be given ?||Where the person in charge of the conveyance fails to produce any prescribed document or where the proper officer intends to undertake an inspection.|
|5.||Instructions to be followed for inspection||1. Record a statement of the person in charge of the conveyance in FORM GST MOV-01.
2. Issue an order for physical verification/ inspection of the conveyance, goods and documents in FORM GST MOV-02.
3. Within twenty four hours of the aforementioned issuance of FORM GST MOV-02, prepare a report in Part A of FORM GST
EWB-03 and upload the same on the common portal.
|6.||Limitation Period for inspection||1. Within a period of three working days from the date of issue of the order in FORM GST MOV-02, the proper officer shall conclude the inspection proceedings, either by himself or through any other proper officer authorised in this behalf.
Replaced “Three working days” with “three days” vide circular 49/23/2018
|7.||Extended period for inspection if any||Where circumstances warrant such time to be extended, the Proper Officer shall obtain a written permission in FORM GST MOV-03 from the Commissioner or an officer authorized by him, for extension of time beyond three working days and a copy of the order of extension shall be served on the person in charge of the conveyance.|
|8.||About Inspection Report||The proper officer shall prepare a report of such physical verification in FORM GST MOV-04 and serve a copy of the said report to the person in charge of the goods and conveyance. The proper officer shall also record, on the common portal, the final report of the nspection in Part B of FORM GST EWB-03 within three days of such physical verification/inspection.|
|9.||After Inspection Report||1. Where no discrepancies are found, be issued forthwith a release order in FORM GST MOV-05.
2. Where opinion to be detained issue an order of detention in FORM GST MOV-06 and a notice specifying the tax and penalty payable in FORM GST MOV-07.
3. The said notice shall be served on the person in charge of the conveyance.
|10.||Release the goods and Convyeance||If the payment of tax and penalty has been paid as applicable according to the section 129 (1) (a) or section 129 (1) (b) the Proper Officer shall release the goods and conveyance by an order in FORM GST Mov-05.|
|11.||After, Payment and order for release the goods and conveyance||The order in FORM GST MOV-09 shall be uploaded on the common portal and the demand accruing from the proceedings shall be added in the electronic liability register and the payment made shall be credited to such electronic liability register by debiting the electronic cash ledger or the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act.|
|12.||About Bond and Bank Guarantee||The goods and the conveyance may be released upon furnishing a security in the form of bank guarantee equal to the amount payable under clause (a) or clause (b) of sub-section (1) of section 129 of the CGST Act alongwith a bond in FORM GST MOV-08.|
|13.||Instruction for after receiving Bond and Security||The finalisation of the proceedings under section 129 of the CGST Act shall be taken up on priority by the officer concerned and the security provided may be adjusted against the demand arising from such proceedings.|
|14.||Instructions for if any Objections are filed against proposed amount of tax and penalty payable||The proper officer shall consider such objections and thereafter, pass a speaking order in FORM GST MOV-09, quantifying the tax and penalty payable. On payment of such tax and penalty, the goods and conveyance shall be released forthwith by an order in FORM GST MOV-05. The order in FORM GST MOV09 shall be uploaded on the common portal.|
|15||If proposed tax and penalty are not paid||If the same is not paid within seven days from the date of the issue of the order of detention in FORM GST MOV-06, a notice be served in form FORM GST MOV10, proposing confiscation of the goods and conveyance and imposition of penalty Replaced “seven days” with “fourteen days” vide circular 88/07/2019-GST|
|16||When proceedings for confiscation may be initiated directly under section 130 ?||1. Where the proper officer is of the opinion that such movement of goods is being effected to evade payment of tax.
2. Notice shall be issued in FORM GST MOV-10.
|17||Instructions for confiscation of goods and conveyance||1. No order for confiscation of goods or conveyance, or for imposition of penalty, shall be issued without giving the person an opportunity of being heard.
2. Order shall be passed in FORM GST MOV-11.
3. The order shall be served on the person concerned.
4. After such order the title of such goods shall stand transferred to the Central Government.
5. Maximum three months shall be offered to make the payment of tax, penalty and fine imposed in lieu of confiscation and get the goods released.
6. The order in FORM GST MOV-11 shall be uploaded on the common portal.
7. Once an order of confiscation of goods is passed in FORM GST MOV-11, the order in FORM GST MOV-09 passed earlier with respect to the said goods shall be withdrawn.
8. Order for confiscation of goods and for confiscation of conveyance may be passed as a common order in the said FORM GST MOV-11.
|18.||If payment according to the order of confiscation of goods and conveyance is not made within stipulated time||The proper officer shall auction the goods and/or conveyance by a public auction and remit the sale proceeds to the account of the Central Government.|
|19.||Instructions for perishable and/or hazardous goods||Suitable modifications in the time allowed for the service of notice or order for auction or disposal shall be done.|
|20.||Instructions for Demand of Tax, Penalty and Fine or other charges||Demand of any tax, penalty, fine or other charges shall be added in the electronic liability ledger of the person concerned. Where no electronic liability ledger is available in case of an unregistered person, a temporary ID shall be created by the proper officer on the common portal and the liability shall be created therein.|
|21.||Instructions for summary of orders||A summary of every order in FORM GST MOV-09 and FORM GST MOV-11 shall be uploaded electronically in FORM GST-DRC-07 on the common portal.|
C. Penalty for minor mistakes occurred in documents including E- Way Bill available at the time of inspection. Proceedings not be initiated under section 129 CGST Act vide Circular 64/38/2018-GST
In case a consignment of goods is accompanied with an invoice or any other
specified document and also an e-way bill, proceedings under section 129 of the CGST Act may not be initiated, inter alia, in the following situations:
a) Spelling mistakes in the name of the consignor or the consignee but the GSTIN, wherever applicable, is correct;
b) Error in the pin-code but the address of the consignor and the consignee mentioned is correct, subject to the condition that the error in the PIN code should not have the effect of increasing the validity period of the e-way bill;
c) Error in the address of the consignee to the extent that the locality and other details of the consignee are correct;
d) Error in one or two digits of the document number mentioned in the e-way bill;
e) Error in 4 or 6 digit level of HSN where the first 2 digits of HSN are correct and the rate of tax mentioned is correct;
f) Error in one or two digits/characters of the vehicle number.
Penalty against such situations – Penalty to the tune of Rs. 500/- each under section 125 of the CGST Act and the respective State GST Act should be imposed (Rs.1000/- under the IGST Act) in FORM GST DRC-07 for every consignment.
D. Issues in regard of E-Way Bill clarified through Circulars
|1.||47/21/2018-GST||In case of transportation of goods by railways, whether goods can be delivered even if the e-way bill is not produced at the time of delivery?||As per proviso to rule 138(2A) of the Central Goods and Services Tax Rules, 2017 (CGST Rules for short), the railways shall not deliver the goods unless the e-way bill is produced at the time of delivery.|
|2.||47/21/2018-GST||Whether e-way bill is required in the following cases-
(i) Where goods transit through another State while moving from one area in a State to another area in the same State.
(ii) Where goods move from a DTA unit to a SEZ unit or vice versa located in the same State.
|(i) It may be noted that e-way bill generation is not dependent on whether a supply is inter State or not, but on whether the movement of goods is inter-State or not. Therefore, if the
goods transit through a second State while moving from one place in a State to another place in the same State, an e-way bill is required to be generated.
(ii) Where goods move from a DTA unit to a SEZ unit or vice versa located in the same State, there is no requirement to generate an eway bill, if the same has been exempted under rule 138(14)(d) of the CGST Rules.
|3.||49/23/2018-GST||It is stated that as per rule 138C (2) of the Central Goods and Services Tax Rules, 2017, where the physical verification of goods being transported on any conveyance has been done during transit at one place within a State or Union territory or in any other State or Union territory, no further physical verification of the said conveyance shall be carried out again in the State or Union territory, unless a specific information relating to evasion of tax is made available subsequently. Since the requisite FORMS are not available on the common portal currently, any action initiated by the State tax officers is not being intimated to the central tax officers and vice-versa, doubts have been raised as to the procedure to be followed in such situations.||In this regard, it is clarified that the hard copies of the notices/orders issued in the specified FORMS by a tax authority may be shown as proof of initiation of action by a tax authority by the transporter/registered person to another tax authority as and when required.|
|4.||49/23/2018-GST||It is clarified that only such goods and/or conveyances should be detained/confiscated in respect of which there is a violation of the provisions of the GST Acts or the rules made thereunder.||Illustration: Where a conveyance carrying twenty-five consignments is intercepted and the person-in-charge of such conveyance produces valid e-way bills and/or other relevant documents in respect of twenty consignments, but is unable to produce the same with respect to the remaining five consignments, detention/ confiscation can be made only with respect to the five consignments and the conveyance in respect of which the violation of the Act or the rules made thereunder has been established by the proper officer.|
|5.||61/35/2018-GST||E-way bill in case of storing of goods in godown of transporter||1. In case the consignee/ recipient taxpayer stores his goods in the godown of the transporter, then the transporter’s godown has to be declared as an additional place of business by the recipient taxpayer.
2. E-Way Bill shall be issued when goods be in to the transporter’s godown and out from the transporter’s godown.
3. The transporter ( treated as warehouse keeper ) shall maintain the accounts and records as specified in section 35 of the CGST Act read with rule 58 of the CGST Rules.
4. The recipient taxpayer shall also maintain accounts and records as required under rules 56 and 57 of the CGST Rules
|6.||76/50/2018-GST||Who will be considered as the „owner of the goods‟ for the purposes of section 129(1) of the CGST Act ?||It is hereby clarified that if the invoice or any other specified document is accompanying the consignment of goods, then either the consignor or the consignee should be deemed to be the owner. If the invoice or any other specified document is not accompanying the consignment of goods, then in such cases, the proper officer should determine who should be declared as the owner of the goods|
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