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No GST returns, no E-way bills! Centre to crack down on non-filers

No GST returns, no E-way bills! Centre to crack down on non-filers

Concerned with the dipping monthly collections of Goods and Services Tax (GST), the government and indirect tax department are now planning stricter measures against non-compliant taxpayers.

According to sources, the tax department is now planning to block the facility to generate e-way bill for taxpayers who do not file two consecutive GSTR-3B returns with effect from 17 November 2019. Once the taxpayer has filed one of the pending returns, the facility to generate e-way bill will be automatically restored.

GSTR-3B is monthly return that every registered GST payer has to file. It contains details of sales and purchases made by a business.

Sources told Business Today that the required connectivity between GST Network (GSTN) and the e-way bill system and development of an application to block and unblock facility has been developed and tested between two systems.

While a decision to this effect was taken by the GST Council in April, the reason for the ‘extreme’ step could be to check leakages of taxes. Non-filing of returns is still high and the tax department thinks this is a major cause for falling GST collections.

“With a continuous dip in revenue for the last few months, this is a step towards curtailment of tax leakage. Businesses need to ensure disciplined filing of GSTR-3B to avoid business disruption,” says Anita Rastogi, partner, indirect taxes, PwC.

According to the indirect tax department, as of 8 November 2019, 21.99 lakh taxpayers have been found to have not filed GSTR-3B returns of August and September 2019.

These defaulters now face possible blocking of the facility to generate e-way bill from 17 November. The department, however, is planning to send alert messages to such taxpayers if they come to e-way bill website, and ask them to file their returns by the 17 November.

The problem though is that integration testing of backend applications of few states with GST System is not yet completed. Unless the facility to unblock the e-way generation facility is developed, the department cannot go ahead with blocking the facility.

Rajat Mohan, a partner in chartered accountancy firm AMRG & Associates, said that deferment of implementation of tax provisions on the premise that technology is not ready indicates that the tax authorities are still not ready to identify and capture the culprits (evading tax) on a real-time basis.

In September 2019, the GST collection fell by 5.3% to Rs 95,450 crore as compared to a year-ago period. In August, the GST collections fell to Rs 92,000 crore, which was lower than the previous year collection by over 4%. With the average monthly collections so far this year at around Rs 98,000 crore, way below the required Rs 1.20 lakh crore, the government is looking at a large shortfall in GST collection.

With five more months to go in this financial year, the latest move is probably a last-ditch attempt by the government to revive GST collections.

Source: Business-Today.

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Non-filers of GST returns for 2 months to be barred from generating e-way bills from June 21

Non-filers of GST returns for 2 months to be barred from generating e-way bills from June 21

Non-filers of GST returns for two straight months will be barred from generating e-way bills for transporting goods effective June 21, the finance ministry said.

Businesses under GST composition scheme, however, will be barred from generating e-way bill if they fail to file tax returns for two consecutive filing periods, which is six months.

The Central Board of Indirect Taxes and Customs (CBIC) has notified June 21, 2019, as the day from which any “consignor, consignee, transporter, e-commerce operator or courier agency” would be barred from generating electronic way or e-way bill for failure to file tax returns for the stipulated time period as mentioned in the GST rules.

As per rules, a composition scheme taxpayer who has not furnished the returns for two consecutive tax periods and a regular taxpayer who has not filed returns for a consecutive period of two months would be restricted from generating e-way bill.

In the Goods and Services Tax (GST) regime, businesses have to file monthly tax returns by the 20th day of the subsequent month. However, businesses opting for composition scheme have to file quarterly returns by the 18th day of the subsequent month following the end of a quarter.

The Goods and Services Tax Network (GSTN) has put in place the IT system so that businesses which have not filed tax returns for the stipulated period would be barred from generating e-way bills.

The move, officials believe, would help check GST evasion. During April-December, there were 3,626 cases of GST evasion/violations, involving Rs 15,278 crore.

Touted as an anti-evasion measure, e-way bill system was rolled out on April 1, 2018, for moving goods worth over Rs 50,000 from one state to another. The same for intra or within the state movement was rolled out in a phased manner from April 15.

Transporters of goods worth over Rs 50,000 would be required to present e-way bill during transit to a GST inspector if asked.

With almost two years into GST implementation, the government is now focussing on anti-evasion measures to shore up revenue and increase compliance.

AMRG & Associates Partner Rajat Mohan said with this supplier, transporters and e-commerce operators would be forced not to sell or transport goods to non-filers

“E-commerce, logistics, FMCG companies, and businesses working on the franchise model, would have to immediately develop and implement an automated workflow whereby defaulting business partners are moved out from the supply chain on a real-time basis,” Mohan said.


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Source: Economic Times.
Gaps in e-way bill reporting mechanism may be closed

Gaps in e-way bill reporting mechanism may be closed

After detecting mismatches in some e-way bill submissions, the Centre is now examining more GST Network (GSTN) data to see if such evasions are increasing sufficiently enough to consider withdrawing the facility of generating multiple e-way bills on a single invoice, an official source said on Monday.

The Goods and Services Tax (GST) authorities are now sifting through GSTN data retrieved through return filings and e-way bills to match these with the summary reconciliation statements of estimated tax liability, thereby, forcing businesses to explain discrepancies like under-reporting distances, the official said.

He, however, said the officials are yet to come across any pattern of deliberate evasion by transporters during the exercise which is still at its early stages.

The reconcilation issues can also be due to typo errors, discontinued supply and the expiry of e-way bills before delivery, and not just owing to tax evasion, he said.

“We will seek clarification once we come across differences between the taxes paid and the liability which the tax officer has ascertained after analysing the sales return GSTR-3B and the e-way bill data for the period in question, and the assessee will be given time and opportunity to make his or her case,” he added.

Designed as an anti-evasion measure, the e-way bill system was rolled out on April 1, 2018, for moving goods worth over Rs 50,000 from one state to another.


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Source: Economic Times
GST officers seek clarification from companies for mismatch in sales returns, e-way bill data

GST officers seek clarification from companies for mismatch in sales returns, e-way bill data

GST officers have started seeking clarification from companies whose tax payments did not match with the e-way bills generated, as revenue authorities start matching supplies data to check tax evasion, sources said.

Touted as an anti-evasion measure, e-way bill system was rolled out on April 1, 2018, for moving goods worth over Rs 50,000 from one state to another. The same for intra or within the state movement was rolled out in a phased manner from April 15, 2018.

Following this, it has come to the notice of tax officers that some transporters are doing multiple trips by generating only a single e-way bill or not reflecting e-way bill invoices while filing sales return. It has also come to the notice that certain businesses are not generating e-way bills even as supplies are being made.

Goods and Services Tax Network (GSTN), the company which handles the technology backbone for GST, has started sharing details of e-way bills vis-a-vis taxes paid to help tax officers identify any discrepancy, sources added.

In one of the letters issued by Ghaziabad GST commissionerate, a taxpayer has been asked to provide “clarification” within three days on the difference between taxes paid and the liability which the tax officer has ascertained after analyzing sales return GSTR-3B and e-way bill data for the period October 2018 and January 2019.

Matching of invoices of e-way bills with the sales shown in sales returns helps taxmen in assessing whether the supplies have been accurately shown in the returns and GST paid on the same.

GSTN has also provided the facility to businesses to include details of e-way bills generated while filing the final monthly sales return under GSTR-1 to avoid double data entry.

The government is banking on anti-evasion measures to meet its GST collection target for the current fiscal.

For fiscal 2019-20, the government proposes to collect Rs 6.10 lakh crore from Central GST and Rs 1.01 lakh crore as compensation cess. The Integrated GST balance has been pegged at Rs 50,000 crore.

AMRG & Associates Partner Rajat Mohan said tax officers have started using the pile of GSTN data retrieved through return filings and e-way bill mechanics to carve out a summary reconciliation statement of estimated tax liability, compelling businesses to justify the outward tax liabilities in a comprehensive manner.

“Tax authorities would be at fault if they presume that reconciliation difference is due to tax evasion only. There be other reasons for this difference like clerical errors, cut off supplies and pre-delivery expiry of e-way bills,” Mohan added.

To further streamline the e-way bill system, GSTN is planning some changes, including auto calculation of route distance based on PIN code and blocking of generation of multiple e-way bills on one invoice/document.

The matching of e-way bill data with that of tax payment is in addition to analysis being done by GSTN by matching taxes paid in summary sales return GSTR-3B and final returns GSTR-1.

Also, businesses whose GSTR-1 did not match with GSTR-2A, which is a purchase return auto-generated by a system from the seller’s return, have been flagged by GSTN systems.

Based on this, last year tax officers sent scrutiny notices to taxpayers seeking an explanation for the reason for the discrepancies

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Source: Money Control.
Forthcoming changes in E-Waybill system

Forthcoming changes in E-Waybill system

1. Auto calculation of route distance based on PIN code for generation of EWB

Now, E-waybill system is being enabled to auto calculate the route distance for movement of goods, based on the Postal PIN codes of the source and destination locations. That is, the e-waybill system will calculate and display the actual distance between the supplier and recipient addresses. The user is allowed to enter the actual distance as per his movement of goods. However, it will be limited to 10% more than the displayed distance for entry. That is, if the system has displayed the distance between Place A and B, based on the PIN codes, as 655 KMs, then the user can enter the actual distance up to 720KMs (655KMs + 65KMs). In case, the source PIN and destination PIN are same, the user can enter up to a maximum of 100KMs only. If the PIN entered is incorrect, the system would alert the user as INVALID PIN CODE. However, he can continue entering the distance. Further, these e-waybills having INVALID PIN codes are flagged for review by the department.

Route distance calculation between source and destination uses the data from various electronic sources. This data employs various attributes, for example: road class, the direction of travel, average speed, traffic data etc. These attributes are picked up from traffic that is on National highways, state highways, expressways, district highways as well as main roads inside the cities. A proprietary logic is then used for approximating the distance between two postal pin codes. The distance thus derived is then provided as the motorable distance at that point of time.

2. Blocking of generation of multiple E-Way Bills on one Invoice/document

Based on the representation received by the transporters, the government has decided not to allow generation of multiple e-way bills based on one invoice, by any party – consignor, consignee, and transporter. That is, once E-way Bill is generated with an invoice number, then none of the parties – consignor, consignee or transporter – can generate the E-Way Bill with the same invoice number. One Invoice, One E-way Bill policy is followed. The change will come in the next version.

3. Extension of E-Way Bill in case Consignment is in Transit

The transporters had represented to incorporate the provision to extend the E-way Bill when the goods are in transit. The transit means the goods could be on Road or in Warehouse. This
the facility is being incorporated in the next version for the extension of E-way Bill. During the extension of the e-way bill, the user is prompted to answer whether the Consignment is in Transit or in Movement. On selection of In Transit, the address details of the transit place need to be provided. On selection of In Movement, the system will prompt the user to enter the Place and Vehicle details from where the extension is required. In both these scenarios, the destination PIN will be considered from the PART-A of the E-way Bill for calculation of distance for movement and validity date. Route distance will be calculated as explained above.

4. Blocking of Interstate Transactions for Composition dealers

As per the GST Act, the composition taxpayers are not supposed to do Interstate transactions. Hence next version will not allow generation of an e-way bill for inter-state movement, if the supplier is composition taxpayer. Also, the supplies of composition taxpayers will not be allowed to enter any of the taxes under CGST or SGST for intrastate transactions. In the case of Composition taxpayer, document type of Tax Invoice will not be enabled.


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Above article was posted on the E-way Bill Government Website Click here to read more

Source: Ewaybillgst.gov.in
GST: 50 Crore E-Way Bills generated till February, says Govt

GST: 50 Crore E-Way Bills generated till February, says Govt

The Central Board of Indirect Taxes and Customs (CBIC) has confirmed that till 28th February 2019, 50 crores E-Way Bills have been generated through the online portal under GST regime.

“Total no. of e-way bill generated across India crosses 50 crore mark from April 1, 2018, to Feb 28, 2019,” CBIC tweeted.

The Goods and Services Tax Network (GSTN), which is the IT backbone of the GST had earlier said that between September 1st to 18th, over 2,72,58,344 E-Way Bills have been generated in the country.

Under GST rules, ferrying goods worth more than Rs 50,000 within or outside a state will require securing an electronic-way or e-way bill through prior online registration of the consignment.

From April 1, the government had implemented the electronic way or e-way bill system for moving goods from one state to another. The same for intra or within the state movement has been rolled out from April 15.

The number of e-way bills generated from April 1st to till August 31st had crossed 20 crores. The first 10 Crore E-way Bills generated in 83 days while next 10 Crore E-way Bills Generated in 66 days.

From, April this year, the Government is all set to integrate NHAI’s FASTag mechanism from April to help track movement of goods and check GST evasion.

In a further development, the Government is also planning to integrate GST returns to the E-way Bills.

Besides, all these, the Government to form a committee of tax officers to suggest steps to deal with bogus e-way bills as there are many instances of bogus e-way bills and fake invoices have come to the notice of the CBIC since April last year.

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Source: Tax Scan.
GST 2.0: Preparing for integration of e-way bills with GST returns

GST 2.0: Preparing for integration of e-way bills with GST returns

As we prepare to enter the next phase of GST compliance, e-way bills are set to take center stage. With the two systems, GST return filings and e-way bills, likely to see integration and confluence, the challenges are important to make sure that businesses comply with them.

GSTN along with GST Council is steadily paving the way for a smooth transition into the GST 2.0 – the newly proposed GST Return filing system to be introduced on the GST portal. While the full-fledged implementation is starting from 1st July 2019, the pilot run is set to begin in April 2019. While the e-way bill site has seen significant developments in terms of the user interface since its inception, the GST authority has noticed that it is a right time to start integrating the same with GST portal.

One of its plan of actions is to disallow taxpayers from using the e-way bill site from generating e-way bills when they default in filing of GST Returns for two periods consecutively. This would apply when either of GSTR-3B or GSTR-4, whichever applicable, is not filed. It has been observed that most of the taxpayers generating e-way bills belong to the class of taxpayers contributing the most to the GST collections.

Further, sufficient time has lapsed in making sufficient e-way bill data available, which can now be analyzed and gaps can be identified. This change will act as an important tool to locate defaulting taxpayers to fix GST revenue collections. The effective date to implement the rule is still under wraps and currently, the validation on the portal is being worked on.

Another plan of action which has just seen a start is the invoice data transfer from the e-way bill portal to the GST portal for the filing of GSTR-1. This move meets a two-fold objective. The most evident one is to make the users feel accommodative of the ease in data-handling and achieving accuracy. The second objective is to allow real-time monitoring of the transactions to keep an eye on the cases of tax evasion.

The facility for importing e-way bill data for preparing GSTR-1 is already up and running on the GST portal login. It allows importing only those invoices against which e-way bills were generated during the tax period. This serves as an alternative mode of data ingestion apart from the existing methods like excel, JSON or API Integration. However, a taxpayer may still have to separately import the details of the invoices that are not subject to e-way bill rules. The integration works on the basis of a proper declaration of GST Identification number (GSTIN) while generating e-way bills.

It is a noble idea to eliminate the need for multiple feeds of the same invoice data by a taxpayer from the ERP or the accountant’s system onto the GST portal and e-way bill portal. It is a critical regulatory checkpoint to ensure the right amount of ITC claims by businesses through automation.

While these actions point towards the long-term goal of using technology to boost tax compliance, these are most likely to continue under the newly proposed GST Return filing system with few tweaks to fit into the system.

The new system proposes an automated intake of sales invoices on a real-time basis, it also allows the buyer to accept or reject these online, and facilitates seamless single return filing (MAIN Return) for the month. Buyers can also keep such invoices on hold for claiming the Input Tax Credit (ITC) in the following month. His actions will be visible to the seller too, thus enabling lesser turnaround time to file GST Returns.

Small taxpayers having less turnover have got multiple options to submit their quarterly returns – SAHAJ or SUGAM or a more elaborate version of the QUARTERLY return. Likewise, the composition dealers have to continue filing GSTR-4 with the frequency to file being changed now to yearly instead of quarterly.

The crucial aim of building the GST system is to allow a free and transparent flow of credit for taxpayers. The new system looks up to accomplish this. Despite the propositions, there will likely be a few hardships. The input claimed on the missing invoices by the recipient can be filed by the seller within next two tax periods from the input claimed by the recipient. However, if the same is not filed by the supplier, the input claimed by the recipient shall be ultimately reversed with interest and penalty.

Though, taxpayers will continue to face the risk due to the default of supplier when an invoice is not uploaded and returns are not filed timely. Recourse to a genuine buyer is still not available. With the eco-system will continue to evolve and compliance will take center stage for those who want to grow their business. These validations point out that the authorities are chalking out a definitive plan for making way to a smooth implementation of GST 2.0, its on ground implementation will be key.

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Source: Economic Times
Revenue department to set up committee to deal with bogus e-way bills

Revenue department to set up committee to deal with bogus e-way bills

The revenue department is planning to set up a committee of tax officers to suggest steps to deal with bogus e-way bills.

Many instances of bogus e-way bills and fake invoices have come to the notice of the Central Board of Indirect Taxes and Customs (CBIC) since April last year.

“Instances on bogus e-way bills based on fake invoices have been detected since April and the tax evasion involved worked out to about Rs 5,000 crore,” an official told PTI.

Touted as an anti-evasion measure, the e-way bill system was rolled out on April 1, 2018, for moving goods worth over Rs 50,000 from one state to another. The same for intra or within the state movement was rolled out in a phased manner from April 15.

Transporters of goods worth over Rs 50,000 are required to present the e-way bill during transit to a GST inspector if asked.

“A committee of Centre and state officers would be set up which would analyse the modus-operandi of fake e-way bills generation and would suggest steps to stop it,” the official added.

The officials feel that to shore up revenue and increase compliance, stringent anti-evasion measures have to be put in place.

To this effect, the revenue department is also working towards integrating the e-way bill system with NHAI’s FASTag mechanism beginning April to help track movement of goods.

It has come to the investigative officers’ notice that some transporters are doing multiple trips by generating a single e-way bill.

Integration of e-way bill with FASTag would help find the location of the vehicle, and when and how many times it has crossed the NHAI’s toll plazas.

Between April-December 2018, central tax officers have detected 3,626 cases of GST evasion or violations cases, involving Rs 15,278.18 crore.


XaTTaX – World Class Automated eSolution for Return filing and e-Waybill

Source: Economic Times.
Changes in E-way Bill from 16th November 2018

Changes in E-way Bill from 16th November 2018

The National Informatics Centre E-way Bill Project has published a list of improvements in the E-way Bill under the Goods and Services Tax ( GST ) regime. The changes would be applicable with effect from 16th November 2018. As per the document issued by the NIC, the following changes will be made in the e-way bills.

Checking of duplicate generation of e-way bills based on same invoice number:

The e-way bill system is enabled in a way that if the consignor has generated one e-way bill on the particular invoice, then he or consignee or transporter will not be allowed to generate one more e-way bill on the same invoice number. If the transporter or consignee has generated one e-way bill on the consignor’s invoice, then if any other party (consignor, transporter or consignee) tries to generate the e-way bill, the system will alert that there is already one e-way bill for that invoice, and further it allows him to continue, if he wants.

CKD/SKD/Lots for movement of Export/Import consignment:

CKD/SKD/Lots supply type can now be used for movement of the big consignment in batches, during Import & Export also. Delivery challan and tax invoice need to accompany goods as prescribed in Rule 55 (5) of CGST Rules, 2017.

Shipping address in case of export supply type:

For Export supply type, the ‘Bill To’ Party will be URP or GSTIN of SEZ Unit with state as ‘Other Country’ and shipping address and PIN code can be given as the location (airport/shipping yard/border check post/ address of SEZ), from where the consignment is moving out from the country.

Dispatching address in case of import supply type :

For Import supply, the ‘Bill From’ Party will be URP or GSTIN of SEZ Unit with state as ‘Other Country’ and dispatching address and PIN code can be given as the location (airport/shipping yard/border check post/ address of SEZ), from where the consignment is entering the country. Enhancement in ‘Bill To – Ship To’transactions: EWB generation is now categorized to four types now Regular and Bill to Ship to, Bill from Dispatch from & combination of both.

Changes in Bulk Generation Tool:

Facility of EWB generation through the Bulk Generation Tool has been enhanced.

Source: Tax Scan
GST: Delhi raises e-way bill threshold

GST: Delhi raises e-way bill threshold

After West Bengal and Tamil Nadu, Delhi has become the third state to double the threshold for e-way bill for intra-state movement of goods to Rs 1 lakh of the cargo value.E-way bill software Experts said the move poses a threat to the seamless implementation of a unified, pan-India GST.

States are legally allowed to amend these rules and also give item-wise exemptions from e-way bill requirements, subject to ceilings. However, tax practitioners said the move could create confusion among taxpayers and make compliance more complex for businesses having consumer bases in multiple states.

FMCG companies, white-goods manufacturers, and auto companies will bear the brunt if more states follow suit and digress from the e-way bill norms approved by the GST Council. The tacit understanding at the council is that such digressions are best to be avoided. Sources said Tamil Nadu and West Bengal have notified state-specific exemptions.

The E-way bill mechanism mandates that supplier or recipient of good worth over Rs 50,000 inform the GST Network about details of the movement of such merchandise. The system would allow the government to detect under-reporting of sales in business-to-consumer transactions and is estimated to shore up monthly GST revenue by as much as Rs 10,000 crore.

E-way bill rules came into effect on April 1 for inter-state movement of merchandise.

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Source: Financial Express
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