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GSTR-9, GSTR-9C gets simplified further, submission dates extended

GSTR-9, GSTR-9C gets simplified further, submission dates extended

The Government has to extend the due dates of filing of Form GSTR-9 (Annual Return) and Form GSTR-9C (Reconciliation Statement) for Financial Year 2017-18 to December 31, 2019 and for Financial Year 2018-19 to March 31, 2020.

It has also decided to simplify these forms by making various fields of these forms as optional.

The Central Board of Indirect Taxes & Customs (CBIC) on Thursday notified the amendments regarding the simplification of GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) which inter-alia allow the taxpayers to not to provide split of input tax credit availed on inputs, input services and capital goods and to not to provide HSN level information of outputs or inputs, etc. for the financial year 2017-18 and 2018-19.

CBIC expects that with these changes and the extension of deadlines, all the GST taxpayers would be able to file their Annual Returns along with Reconciliation Statement for the financial years 2017-18 and 2018-19 in time.

“Since the returns were not simplified, the extension is not a surprise. However, frequent extensions and delay in non-simplification has been a let down for businesses. Our sense is that businesses are ready to comply with GSTR-9 so they can move on and prepare for the new simplified return filing system,” said Archit Gupta .

Earlier the last date for filing of GSTR-9 and GSTR-9C for Financial Year 2017-18 was November 30, while that for Financial Year 2018-19 was December 31.

Source: Economic-Times

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Delhi HC directs GST Department to Open Online Portal to file the Form TRAN-1 electronically, or to Accept Manually

Delhi HC directs GST Department to Open Online Portal to file the Form TRAN-1 electronically, or to Accept Manually

The Delhi High Court has directed Goods and Services Tax ( GST ) department to either open the online portal so as to enable the petitioner to file the Form TRAN-1 electronically or to accept the same manually on or before 20.11.2019.

The petitioner contended that, it is engaged in the business of trading of steel pipes and is registered under the Central Goods and Service Tax Act, 2017. Before the introduction of the GST Act, as on 30.06.2017, the petitioner had a closing stock of pipes purchased from M/s Avon Steel Industries Private Limited of Rs. 71,35,431/- inclusive of excise duty of Rs.7,92,826/-. Petitioner was entitled to the transition of credit of the amount of Excise duty in terms of Section 140 (iii) of the GST Act. In order to avail transition of credit, petitioner was required to submit a declaration in Form TRAN-1 on the GST Portal within the stipulated period of 90 days. Since a large number of taxpayers could not complete the process within the aforesaid period on account of technical glitches and difficulties faced by them, the government extended the time period for filing TRAN-1 several times and lastly on the recommendation of GST Council, it was extended up to 27.12. 2017.

The Petitioner also submitted that, Pursuant to the aforesaid extension, the petitioner filed Form TRAN-1 on the common portal before the deadline. However, it was unable to log in to the common portal between 24.12.2017 to 27.12.2017 and avail transition of credit, presumably because of low bandwidth, given the fact that a large number of assessees all over India were trying to submit the declaration in Form TRAN-1 before the last date i.e. on 27.12.2017. Petitioner has annexed the screenshot of the Form TRAN-1, available on the common portal along with the petition.

The division bench comprising of Justice Vipin Sanghi and Justice Sanjeev Narula has said that, “the factual position in the present case is not any different and thus, we allow the present petition and direct the respondents to either open the online portal so as to enable the petitioner to file the Form TRAN-1 electronically or to accept the same manually on or before 20.11.2019”.

The Court also directed to process the petitioner’s claim in accordance with law once the GST Form TRAN–1 is filed.

Source: TaxScan.

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No GST Registration Needed for Co-Owner in AoP until the Turnover Reached the Threshold Limit: AAR

No GST Registration Needed for Co-Owner in AoP until the Turnover Reached the Threshold Limit: AAR

The Authority of Advance Ruling in West Bengal has ruled that, GST Registration is not needed for Co-Owner in Association of Persons ( AoP ) until the turnover reached the Threshold limit under the GST Act, 2017.

The Applicant is one of the co-owners of immovable property, jointly owned by three individuals. All three co-owners, including the Applicant, hold an equal share in the property. The property is let out to CGST & CX, Chandannagar Division. Total rental received exceeds the threshold provided under section 22(1) of the GST Act, but the share of each of the three co-owners does not cross the said threshold.

The Applicant seeks a ruling on whether he and the other two co-owners are to be treated as an association of persons or a body of individuals and, therefore, a person as defined under section 2(84)(f) of the GST Act, who is required to be registered under section 22(1) of the Act.

The AAR observed that, “the Applicant and the other two co-owners cannot be treated as an association of persons and, therefore, as a person defined under section 2(84X0 of the GST Act, where their income from renting is separately ascertainable and assessed for income tax individually at the hand of each co-owner. Whether the Applicant is required to be registered under section 22(1) of the GST Act will, therefore, depend on his gross turnover, ascertained separately from the other co-owners, exceeding the threshold as provided under the Act”.

Source: TaxScan.

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Know in Detail about the Importance of GST Reconciliation

Know in Detail about the Importance of GST Reconciliation

What do you mean by GST Reconciliation?

The concept of GST reconciliation and matching is not new as far as the taxpayers are concerned. In fact, this process has been modeled upon the former VAT and excise laws. Previously, matching of data between tax returns and the books of accounts was quite easy for most of the enterprises. Suppose if the department that is responsible for processing the returns came across some discrepancies, the taxpayer would be sent the communications, following which further inspection and audits would be done.

In the GST system, this process has gained much importance, as the rationality of the Input Tax Credit used by the businesses is being regularly checked by the GST personnel. Further, under this regime, the taxpayers are required to reconcile their data each month along with the data declared by their vendors. The return filing and processing are automated semantically, and the GST returns are inter-connected.

Some of the Common Errors which Occur During GST Reconciliation

Below given are some of the mismatches which occur during the reconciliation process:

  • Variances between the amount of credit in GSTR 3B and GSTR 2A or/and
  • Alterations in the provisional credit claimed and the actual credit which is claimable. Normally, this situation happens during transition phases
  • Differences between GSTR 3B and GSTR 1

Scrutiny notices would be sent to the taxpayers if there are any variations observed between these returns.

Mismatches can occur due to several reasons. Some of the common reasons are:

  1. Though the vendor has not declared liability on the supplies which have been already done with, the businesses have already taken credit for such purchases in the GST returns. If the businesses did not carry out the necessary follow up with the vendor to make sure that the liability is declared, the risks pertaining to such credits getting rejected may increase
  2. The mistakes which occur in the already furnished details. Mismatches can occur in the fields like the date and number of the debit note/invoice, the GSTIN of the supplier/recipient, etc. Further, if amendments are made in the GST returns of the month succeeding the relevant month during which the mistakes happened, it may lead to mismatches as well
  3. Mismatches occur in the credit availed and the liability declared by the vendor. In fact, the reasons for these variations should be recognized and reconciled accordingly
  4. Though the liability has been declared by the vendor, the credit is not availed in the GST return. Such credits should be utilized at the earliest before the due date of September returns or annual returns.

How to Select a Software/Tool which Enables Quicker Reconciliation and Guarantees 100% Compliance?

A powerful technological solution can address all of the GST reconciliation challenges in an effective manner, which in turn helps to add value to the business concerned. Some of the features which are essential for the matching and reconciliation purposes include:

  • The GST reconciliation software should have the ability to deal with huge chunks of data
  • A business owner should be able to get the data into the reconciliation system quite easily from any type of source like Excel, ERP, bill books, etc.
  • It should make the entire process seamless and efficient during each month, that the business owner can stay relaxed
  • Proactive reminders and the availability of an automated system in order to minimize human interventions would also help in making the process of reconciliation more efficient
  • The software/tool must be exceptionally intelligent to tackle any missing/wrong information like wrong dates, invoice numbers, tax rates, sale value, missing items, etc. The GST reconciliation software should be capable of providing reconciliation efficiently in all these instances
  • It should be capable of providing in-depth reporting and insights which can help deal with the challenges successfully
  • Given the fact that the GST rules keep on changing from time to time, the tool/software should be able to evolve quickly and operate as per the changes in the rules.

Carrying Out GST Reconciliation in Five Easy Steps

The reconciliation process under the GST system is all about matching the data filed by the suppliers with that of the recipients and recording all the transactions that happened during that time. Further, this process guarantees that no transactions or procurements are excluded or wrongly stated in the GST returns.

The taxpayers are required to reconcile their data with that of the vendors regularly in order to claim the Input Tax Credit (ITC) for which they are eligible. Though reconciliation is simple, it may be time-consuming as the taxpayers need to watch out on a continuous basis for any discrepancies or mismatches that may have a serious impact on the ITC claim.

Below given are five steps to handle the reconciliation process easily:

1. Under the GST reconciliation process for the relevant financial year, it is mandatory that the taxpayers need to file the entire periodic GST return. Even if the due date of a certain GST return is overlooked, it needs to be filed along with the interest or the late fee, whichever is applicable. In fact, if the GST returns are not filed in time, it may affect the matching and reconciliation procedure. Further, the taxpayers are required to keep their books of accounts up-to-date and align the tax returns in accordance with the same. Moreover, unless the entire GST returns are filed, the taxpayers would not be able to claim the ITC

2. It is important for the books of accounts and the GST return to be in agreement with each other for the purpose of claiming ITC. In addition, the taxpayers need to keep a check on the taxes paid as per the reverse charge system while they claim ITC on purchases. However, a taxpayer can benefit from the credit of taxes paid according to the reverse charge system only if the goods and/or services are utilized or would be utilized for the sake of business

3. The taxpayers need to find out the mismatches and make corrections in the relevant entries in the books of accounts. Further, they also need to amend these details in the upcoming GST return filing period. Though the GST laws do not allow to revise tax returns filed during the previous periods, they permit to file the corrected entries through an amendment return in the subsequent periodic return. Further, these entries need to be filed in GSTR 1 and GSTR 3B as well.

Ensure that the purchase register is carefully matched with GSTR 3B (uploaded on a monthly basis) and GSTR 2A details (uploaded by the supplier). It is essential to streamline the GSTR 3B return, the books of accounts, and the GSTR 2A form to avail the ITC completely on the related purchases, or else, the taxpayer may lose the ITC claim, which ends up in paying extra taxes

4. The communication between the vendors and customers is important as it results in the relentless reporting of the details as far as the GST returns are concerned. Further, the chances of omission, mismatches, or incorrect entries are considerably minimized when both the suppliers and the recipients coordinate their details and then file the GST returns. It is also important to find out the non-compliant vendors, interact with them, and address their issues which will further help the recipients to maximize their ITC. Currently, there are many best GST reconciliation software available which could provide help in minimizing the communication gap between the recipients and the suppliers. This kind of software allows the users to send a reconciliation mismatch report to the suppliers or vendors to address any issue regarding the same

5. Finally, the taxpayers are required to report all the corrected sale or purchase transactions of the relevant financial year, for the September returns.

In short, GST reconciliation is an ongoing process that should be carried out periodically in order to claim maximum credit and also to evade mismatches to a greater extent.

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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How the Implementation of GST has impacted the ERP – Enterprise Resource Planning Systems

How the Implementation of GST has impacted the ERP – Enterprise Resource Planning Systems

It has been quite a challenge for businesses to switch over to the GST system initially. Those players that had an effective action plan for their ERPs to migrate into the GST regime were the winners of this makeover. Data migration is a daunting task that impacts the master data and the transaction data alike and needs the deployment of adept resources. For this reason, it is essential to evaluate and recognize the areas in the ERP system which could be affected by the GST implementation.

Some of the Key Functionalities that are affected Under the GST System

Here are some of the functionalities that are affected by the implementation of GST.

  • Master Data Details – The GST law puts forward rules regarding the tax charges, location of supply of goods and services, and the time of supply. The tax rates concerning the different goods and services also vary as per these rules. To deal with such scenarios, there arises a need to re-enter the master data which includes the client’s billing and shipping addresses, inventory and warehouse details, item masters, etc. In fact, this has streamlined the different tax procedures as well as the reporting process in the ERP system
  • Chart of Accounts – Previously under the VAT system, the companies that sold goods and offered services at the same time needed to have separate account codes for transactions related to Value Added Tax (VAT) as well as Services Tax. Further, these account codes are combined under the GST system. It was mandatory for the taxpayers to carry forward the tax credit balance from the previous accounting codes to GST account codes in order to maintain the tax credit paid under the earlier system. Later on, the reconciliation of the same was made possible.
  • Reporting and Workflows – Another key change that occurred with the implementation of the GST system was related to the reporting framework and workflows. The already existing reports formatted as per the indirect tax system under the VAT regime have become out-dated and those must be re-designed according to the GST law. The merging of the tax data with the ERP system is susceptible to failure as it acts as a single point for the entire reporting process. Hence there arises the need for the implementation of more robust workflows.
  • Tax Rule Engine – A majority of the ERP systems maintain a separate tax rule engine which serves as the master repository of all the information available inside the system. This consists of details regarding tax jurisdiction, tax compliance, tax rates, and reporting. A lot of re-engineering has gone into developing this tax engine as per the GST system, and it is still undergoing up-gradation on a regular basis.
  •  Requirement of a Smart Reconciliation Tool for the ERP systems – At present, as the amendments are not made in the returns, but would be reflected only in the next month returns, it is essential to have a robust reconciliation tool implanted in the concerned ERP system in order to track changes so as to evade duplication in data. Further, the GST system is all about matching data between numerous returns like GSTR-2A with GSTR-3B returns, GSTR-1 with GSTR-3B returns, etc. To handle this situation, it requires a powerful tool that can offer details about the mismatch in the reports, recommend actions, and circumvent duplicate entries in the books. In fact, matching entries in books and returns is another strenuous task that the businesses have to encounter if the tasks are not automated. A comparison between GSTR-2A return and the purchase register is quite important, as it helps the taxpayer to claim 100% of the ITC (Input Tax Credit) for which he is eligible.
  • Communication Tool for Vendors – The adoption of AI and Machine Learning technologies can be of great help to the larger enterprises in managing the vendor accounts easily. As the GST regime involves uploading the invoice details on to GSTN and matching GST returns between the recipients and suppliers of the supply transactions, it may include regular tracking of vendor ledger accounts using the GSTR-2A return, which is auto-generated on the GST portal. Developing an automated communication tool for vendors which is embedded within the ERP system is the need of the hour that each taxpayer might be looking forward to. This is because it guarantees the timely claiming of ITC and avoids the last minute and later disputes with the vendors regarding any mismatches.
ERP-for-GST-Software

Looking into the Future

Making your organization GST ready could be compared to the implementation or re-implementation/up-gradation of an ERP system from a lower version to a higher one. In fact, it is not that simple as affecting changes in invoice tax calculations; rather, it requires a complete review of the business processes as well as makeovers. Though it sounds complicated, it is not essentially so if the fundamental concepts are understood well.

There are major changes involved in the functioning of the businesses following the GST wave. In fact, with the introduction of GST into the system, there is the same tax structure all over India, unlike it was previously when the businesses had to consider many aspects pertaining to the different states.
 
It is a well-known fact that businesses flourish when there is a well-structured process in place, along with proper reporting and accounting systems. Further, IT plays an important role in running a business successfully. Following the implementation of GST, a revamping of the entire business processes has become mandatory. 

 
Moreover, as the frequent changes in the law are becoming a tough thing for the businesses to handle and interpret, it would be necessary to conduct an impact analysis on their business processes and embed the same in their ERP systems. A major challenge is to make sure that the software is configurable and flexible to deal with such requirements so that the enterprises can implement the changes without any interruptions.

In short, making necessary changes in an ERP environment while syncing with the GST system is an intimidating task which is to be dealt with carefully to run the business smoothly.

No GST on Reimbursement of Expenses to Employee by Employer: AAR

No GST on Reimbursement of Expenses to Employee by Employer: AAR

The Authority of Advance Ruling ( AAR ) in Karnataka has ruled that, the amounts paid to the employees of the applicant company as reimbursement of expenses incurred by them in the course of employment of the applicant company are not liable to tax under the provisions of the Goods and Services Tax Act, 2017 as the transaction of the services supplied by a supplier to the employee and paid by the employee is liable to tax after 30.09.2019.

The AAR also ruled that, the remuneration paid to the Director of the applicant company is liable to tax under reverse charge mechanism under sub-section (3) of section 9 in the hands of the applicant company as it is covered under entry no. 6 of Notification No. 13/2017- Central Tax (Rate) dated 28.06.2017.

The applicant has been examined and its found that the applicant’s employees incur expenses on behalf of the company in the course of employment and the said amounts are reimbursed by the applicant on a periodical basis. These expenses are incurred by the applicant and are only paid by the employee and later on reimbursed to the employee by the applicant. The issue is whether the amount paid as reimbursement of the expenses paid by the employee amounts to supply liable to tax.

Services by an employee to the employer in the course of or in relation to his employment are covered under Clause 1 of the. Schedule III which relates to the activities or transactions which shall be treated neither as a Supply of Goods nor as a Supply of Services. Hence the services provided by the employees of the applicant to the applicant are not a supply. Further, the expenses incurred by the employees are expenses of the applicant and the consideration is payable by the applicant himself and later on reimbursed by the applicant.

The AAR observed that, “The amount paid by the employee to the supplier of service is covered under the term “consideration” as if it is paid by the applicant himself for the services received by them on behalf of the company. This amount reimbursed by the applicant to the employee later on would not amount to consideration for the supplies received as the services of the employee to his employer in the course of his employment is not a supply of goods or supply of services and hence the same is not liable to tax. However, if any tax is applicable, it is on the services received by the employee on behalf of the applicant in the course of his employment, irrespective of the fact that it is paid by the applicant or the employee and later reimbursed by the applicant”.

Regarding the remuneration to the Directors paid by the applicant, the services provided by the Directors to the Company are not covered under clause (1) of the Schedule III to the Central Goods and Services Tax Act, 2017 as the Director is not the employee of the Company. The consideration paid to the Director is in relation to the services provided by the Director to the Company and the recipient of such service is the Company as per clause (93) of section 2 of the CGST Act and the supplier of such service is the Director.

Source: TaxScan.

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18% GST applicable to Works Contract of Residential Quarters, rules AAR

18% GST applicable to Works Contract of Residential Quarters, rules AAR

The Authority of Advance Ruling ( AAR ) in Madhya Pradesh has ruled that, 18% Goods and Services Tax ( GST ) applicable to Works Contract of Residential Quarters.

The AAR has clarified the rate of GST on contract for Construction of building and structure for colony a village Siveria at 2 x 660 MW Shree Singaji Thermal Power Project Stage – II Khandwa.

The AAR observed that the issue before us is squarely covered under Section 97(2)(a) of the Act and therefore we admit the application for consideration.

The authority vide order dtd.18.10.2018 had ruled that “The works contract service of construction of 599 residential quarters allotted to the applicant (Shreeji Infrastructure P.Ltd.) by MPPGCL will merit classification under SAC 9954 and would attract GST @18% (9%CGST + 9%SGST)”.

Construction of residential quarters, though within the precincts of Power Plant’ cannot by any stretch of argument and imagination be termed as the work entrusted to the applicant.

The AAR also observed that, the GST will be applicable @18% under SAC 9954, in as much as it refers to the construction of residential quarters, which was awarded to M/s.Shreeji Infrastructure P.Ltd., as already ruled vide our order no.15/2018 dtd.18.10.2018.

Source: TaxScan.

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Gujarat HC serves notices on govt, GST council for breach of refund norms

Gujarat HC serves notices on govt, GST council for breach of refund norms

The Gujarat High Court has issued notices to the union government and the GST Council over the alleged breach of refund norms by field officers under the goods and services tax (GST) regime.

Under the Rule 92 of the Central GST (CGST) Act, the claim of the refund has to be made in the RFD 04 form. Thereafter, the officer concerned can accept or reject the claim after his investigations.

If the claim is accepted, he would issue refund in the form RFD 06. In case the refund is required to be adjusted, the officer would withhold it in the form RFD 07. If the refund is not admissible, partly or wholly, this would be communicated through the form RFD 08.

If the amount is rejected, it would be credited to the government account under the Rule 93 of the

Gujarat HC serves notices on govt, GST council for breach of refund norms CGST Act, but for that, due process of RFD forms has to be followed.
A petitioner moved the high court, saying the field officer concerned rejected his claim of refunds without resorting to RFD forms. He reversed it under the Rule 93, which, he argued, could not be done without following the due process.

Abhishek Rastogi, counselor of the petitioner and partner at Khaitan & Co, said many petitioners were keen to move the court over the lapses. “The law provides that the denial of the refund has to happen only after compliance with the procedure laid down. We have challenged the rejection order, which has not followed the due process of law,” he said.

Source: Business-Standard.

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What is “E-way Bill System”

What is “E-way Bill System”

Today, the term ‘E-way bill’ is used extensively. It refers to an electronically-generated document which is needed for the movement of goods whose value is more than Rs.50,000, from one place to another all over India, except Delhi. In the case of movement of goods within Delhi, an E-way bill needs to be created for goods whose value is more than Rs.1 Lakh. Further, this document needs to be generated online for moving goods, regardless of whether such transportation happens intra-state or inter-state. In fact, the E-way bill generated in any state is valid in every state as well as the Union Territory of India.

How long is an E-way Bill Valid?

An E-way bill is valid for a certain period as given below from the relevant date:-

Distance CoveredPeriod of Validity
Distance which is less than 100 km1 Day
For each 100 km or part thereof1 Added Day


Here the relevant date for calculating the validity of the E-way bill will be the date on which it has been generated. Further, the validity period starts from the time at which the E-way bill has been generated, and every day till the period of expiry shall be counted, which would end on the midnight of the next day of generation of E-way bill.

In exceptional cases where the goods could not be moved within the designated validity period stated in the E-way bill, the transporter needs to generate another E-way bill after updating the information in Part B of Form GST EWB 01. Further, in the case of certain goods, the commissioner may prolong the validity period of the E-way bill.

What is the Date of the Applicability of E-way Bill?

The applicability of E-way bill under the GST system is from 1st April 2018 for the transportation of goods from one state to another. Further, the E-way bill has been implemented in different stages during the period starting from 15th April 2018 to 16th June 2018. The stage-by-stage roll-out has been completed now and currently, the E-way bill is applicable in all of the states. With the introduction of E-way bill under the GST system, the way bill, a physical document which has been mandatory under the VAT regime for the purpose of transporting goods, is been replaced by the former.

Who All Are Required to Generate an E-way Bill?

The E-way bill under the GST system needs to be generated by

  • Each registered individual who is responsible for the transportation of goods
  • In connection with a supply (for example, sales); or
  • For some other reasons than supply (for example, branch transfer, sales return, etc.); or
  • Owing to inward supply received from an unregistered individual
  • Each unregistered person who is responsible for the transportation of goods.

Generation of E-way Bill by a Registered Person

If the transportation of goods is done by a registered person as a consignor (that is, seller) or the recipient of supply is carried out as a consignee (that is, buyer) in his own vehicle, or a hired one, or by vessel, or by railroad, or by air, the registered person or the recipient would be able to generate the E-way bill in Form GST EWB 01 on the common portal, after filling in the necessary details in Part B of the Form GST EWB 01.

Suppose if a registered person sends the goods to the transporter for moving those by road, and if the E-way bill for the same has not been generated, the responsibility of generating the E-way bill would be on the transporter. The registered individual should provide the information concerning the transporter first in Part B of the Form GST EWB 01 on the portal, following which the E-way bill would be generated by the transporter as per the information provided by the registered individual in Part A of the Form GST EWB 01.

Generation of E-way Bill by an Unregistered Person

If the goods are moved by a person who is unregistered under the GST regime in his own conveyance, or by means of a hired one, or via a transporter, the E-way bill would have to be generated by the transporter or by the unregistered person himself in Form GST EWB 01 on the government portal. Further, if the goods are delivered by an unregistered person to a registered person, and the latter is aware of the time of the transportation of goods, the responsibility regarding the movement of goods falls on the registered person. In such circumstances, either the transporter or the registered person would have to complete the formalities regarding the generation of the E-way bill.

What are the Responsibilities of a Transporter?

  • If the consignor (seller) or the consignee (buyer) has not generated the E-way bill and the total value of the consignment is greater than Rs.50,000, the transporter would have to generate Form GST EWB 01 as per the invoice, or delivery challan, or
    bill of supply
  • A transporter who shifts goods from one conveyance to another during
    a transit is required to modify the details of the conveyance in the E-way bill on the government portal before such transfer is made and also before he proceeds further with the movement of goods
  • If there are several consignments to be transported in a conveyance, the transporter should provide the serial number of each E-way bill generated individually with regard to every consignment on the common portal, and a consolidated E-way bill should be generated in the Form GST EWB 02 on the GST portal before moving the goods.

The Situations Where E-way Bills are not required

It is not needed to generate E-way bills in the below-mentioned circumstances:

  • The goods are moved to a distance less than 10 km within a certain state, from the business location of the consignor to that of the transporter for moving it further
  • The goods are moved to a distance less than 10 km within a particular state, from the business location of the transporter to that of the consignee
  • The goods are conveyed from the airport, port, land customs station, and air cargo complex to a domestic container yard or a freight station for the purpose of clearance by the Customs department
  • The goods are conveyed by a non-motorized conveyance
  • The transportation of goods within those areas mentioned under clause (d) of sub-rule (14) of rule 138 of the GST Rules governing the concerned state
  • For some goods like jewelry, personal and household stuff, etc.

Note: For transporting goods to a distance greater than 10 km but lesser than 50 km, the generation of E-way bill is compulsory. However, it is not required to provide the transportation details in the concerned E-way bill.

The Documents Which Are to be carried by those in Charge of Transportation

The person in charge of transportation need to carry:

  • The invoice, or delivery challan, or bill of supply, and
  • A copy of the E-way bill or the E-way bill number, either physically or connected to a Radio Frequency Identification Device which is implanted on to the conveyance in a manner which is notified by the commissioner.

To sum it up, here the rules and regulations concerning the E-way bills are discussed in detail to provide an insight into the entire procedure.

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