E-way Bill

E-way Bill under GST Registration

Earlier CBEC has provided guidelines for migration of existing VAT and Service Tax assessee into Online GST registration for which the last date is 30th April 2017. Also, CBEC has come out with series of draft rules relating to GST registration, payment, a claim of input tax credit or E-way Bill etc.

Now, CBEC has released new draft rules relating to transportation of goods and furnishing of information in form of electronic way (E-Way Bill) on 14th April 2017 for public comment.

It prescribes that Freight worth over ₹50,000 will require obtaining a prior registration and generation of an E way bill under the Goods and Services Tax (GST) regime.

As per said E-Way Bill rules, in the case of transportation of any goods worth more than Rs 50,000 whether within the state or interstate, the applicant will be required to do prior online registration of the consignment.

Further, power has been given to tax officials to inspect the said e-Way Bill any time during the course of a journey in order to determine whether any tax evasion has been done or not.

This is a major announcement under GST regime which will change the mode of transportation of goods in India.

Some of the salient features of new E-Way Bill are as under

  • Applicable where consignment value is more than Rs 50,000.

Under this system, information has to be given before the goods have started moving from a place of supply in case of consignment value of goods is more than Rs 50,000. The information has to be given even if the movement is not a supply. Also, applicable in the case of purchase of goods by registered person from unregistered person. In this system, the moment a registered person uploads a tax invoice issued by him in FORM GST INV-1, the information will be auto-populated in Part A of Form GST INS-01.

  • Both registered person and receiver of supply can generate e-way bill

Here, both consignor ( registered person) or consignee ( receiver of supply) may generate the e way bill in case of transportation of goods by own conveyance or hired one FORM GST INS-1 after furnishing Part B of FORM GST INS-1.

  • Generation of Unique EBN

In case consignor and consignee have not generated e-way bill as mentioned earlier, even the transporter can generate the E-Way Bill on basis of information furnished by registered person in Part B of FORM GST INS-1. After generation of E-Way bill, a unique e-way bill number (EBN) will be made available.

  • Generation of the e-way bill even when a value is less than Rs 50,000.

E-Way Bill may be generated by the registered person or transporter even if Value of Consignment is less than Rs. 50,000:

  • Transfer of goods during transit

In case, there is a transfer of goods from one conveyance to another during transit, the transporter will generate a new e-way bill in form GST INS-1 before such transfer of goods.

  • Transport of multiple consignments

In case, there is the transportation of multiple consignments in one conveyance, a consolidated e-way bill will need to be generated before movement of goods in FORM GST INS-2.

  • Cancellation of E-Way Bill

E-Way Bill may be canceled within 24 hours of its generation in case same has been generated but goods have not been transported. However, if such bill has been verified in transit, then such bills cannot be canceled.

  • Validity of e-way bills

The e-way bills will be valid for 1, 3, 5, 10 or 15 days from the date of generation depending upon the distance the goods have to be transported, where one day would equal 100 km and over 15 days would be for 1,000 km or more.

  • Documents to be carried by transporter

The person in charge of conveyance shall carry following documents. A copy of invoice, bill of supply, delivery challan, a copy of e-way bill either physically or mapped to a Radio Frequency Identification Device (RFID) embedded onto the conveyance.

  • Detention of vehicle

In the case of detention of vehicle for a period exceeding 30 minutes, the transporter may upload the said information in FORM GST INS-04. This will increase the accountability of tax officers.  

Author: Anil Agrawal
EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.

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