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GST officers to soon have real-time data on vehicles moving without e-way

GST officers to soon have real-time data on vehicles moving without e-way

The government is working on a system to soon provide report to GST officers on a real-time basis for those vehicles which are moving without e-way bills, to help intercept stuck trucks at toll plazas and check GST evasion.

The tax officers would also be provided analysis reports on identifying e-way bill EWB with no movement of goods as it would help officials identifying cases of circular trading. It would also provide reports on recycling of e-way bills for tax evasion prone commodities to help officers in identifying tax evaders.

Under the Goods and Services Tax (GST) regime, e-way bills have been made mandatory for inter-state transportation of goods valued over Rs 50,000 from April 2018. However, gold is exempted.

In the electronic way (e-way) bill system, businesses and transporters have to produce before a GST inspector the e-way bill, if asked.

The government is now working on a ‘Real-time and Analysis Reports on RFID’ for GST officers to help them nab tax evaders who are misusing the e-way bill system.

In a report on ‘E-way Bill – A journey of three years’, the government said 180 crore e-way bills have been generated in three years till March 2021. Of this, only 7 crore bills were verified by tax officers.

In the 2020-21 fiscal, ended March, 2021, 61.68 crore e-way bills were generated, of which 2.27 crore was picked up for verification.

In 2019-20 fiscal, ended March 2020, 62.88 crore e-way bills were generated, of which 3.01 crore were picked up for verification by tax officers.

The top five states, which generated maximum number of e-way bill for inter-state movement of goods were generated are Gujarat, Maharashtra, Haryana, Tamil Nadu and Karnataka.

The top five sectors where maximum e-way bills were generated in the past three years are textiles, electrical machinery, machinery and mechanical appliances, iron and steel, and automobiles.

With effect from Janaury 1, 2021, the government has integrated RFID/FasTag with the e-way bill system and a transporter is required to have a RFID tag in his vehicle and details of the eway bill generated for goods being carried by the vehicle is uploaded into the RFID.

When the vehicle passes the RFID Tag reader on the highway, the details fed into the device gets uploaded on the government portal. The information is later used by the revenue officials to validate the supplies made by a GST-registered person.

To improve tax compliance, the government has also started blocking of EWB Bill generation if a GST registered taxpayer has not filed GSTR- 3B return for the last two successive months.

Also, the government has blocked the generation of multiple EWBs on one invoice. If the EWB is once generated using an invoice number or document number, then none of the other parties can generate another EWB using the same invoice number.

Besides, the e-way bills system has enabled auto calculation of distance based on PIN codes. The system will auto calculate the distance between the source and destination, based on PIN codes.

For the future, the government will also provide a real-time report on vehicle movement for selected e-way bill to helps officers in knowing the trail of movement by the vehicle.

Also, real-time report on vehicles moving without e-Way bills for a selected toll plaza would be made available to officers to help them intercept only those vehicles which are not having e-waybills

Also analysis reports on identifying EWB with no movement of goods would be given to assist officers in identifying cases of bill trading and circular trading. Analysis reports on recycling of EWB for tax evasion prone commodities would help in identifying tax evading taxpayers.

Associates Senior Partner Rajat Mohan said, “With enhancements in GSTN & NIC systems, the efficacy of point-to-point tracking is getting water-tight. At this pace, taxpayers will soon witness real-time monitoring of goods.

Transportation sector may have real-time tracking technologies in place in the next 3- 5 years, whereby tax leakage will practically become impossible.”

Tax Partner Abhishek Jain said the three-year report on e-way bill highlights the future features to be introduced in the NIC portal which will further help authorities and businesses in easy tracking of move of goods.

Source: Business-Standard. 

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IHMCL, GSTN to ink pact to link FASTag with GST e-way bill system on Oct 14

IHMCL, GSTN to ink pact to link FASTag with GST e-way bill system on Oct 14

The Indian Highways Management Company Ltd (IHMCL) and Goods and Services Tax Network (GSTN) will sign a memorandum of understanding on Monday for integration of FASTag with GST e-way bill system.

The memorandum of understanding (MoU) will be inked at the ‘One Nation, One FASTag’ conference, which will be inaugurated by Road Transport and Highway Minister Nitin Gadkari.

FASTag is a simple to use, reloadable tag which enables automatic deduction of toll charges and lets vehicle pass through toll plaza without stopping for cash transaction.

An MoU will be signed between IHMCL and GSTN for integration of FASTag with GST e-way bill system, an official statement said.

The GST Council has already accorded ‘in-principle’ approval for this integration.

The integration of e-way bill system with FASTag will help revenue authorities track the movement of vehicles and ensure that they are travelling to the same destination that the transporter or the trader had specified while generating the e-way bill, the statement added.

“The conference will see the signing of MoUs with state departments/other agencies for bringing in a unified electronic tolling solution across the country,” it added.

This would mean enabling the use of the same FASTag, affixed on the windscreen of a vehicle, at every toll plaza in the country under jurisdiction of different states /agencies and other entities. This will help provide seamless services to consumers across the country, it said.

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Source: Economic-Times

Government likely to introduce electronic invoice system under GST

Government likely to introduce electronic invoice system under GST

Top companies in the country may soon have to rely on a common goods and services tax portal to issue invoices to their customers.

The government is looking to introduce an electronic invoice mechanism under GST, but could restrict it to large companies in the initial phase, said a government official privy to the deliberations on the matter.

This will automatically register every transaction on the GST network. “It is being examined … We are looking at if bigger companies could be brought in to begin with,” said the official.

After the successful implementation of the e-way bill system, the government is upbeat on opting for the e-invoicing as it looks to curb tax evasion. E-invoicing will allow the government to capture transactions on a real-time basis. For companies, it will make compliance, as well as getting their tax credits, easier.

A committee appointed by the GST Council has constituted a sub-group that will examine issues connected to e-invoicing, including optional treatment of sectors such as banking and telecom as also tentative timeline for execution.

This sub-group will examine and recommend the business process, policy and legal aspects for generation of e-invoice. It will also consider matters such as format for invoice, modification or cancellation of invoice, turnover threshold for invoice generation from the portal, immediate steps for B-to-B supplies with a high threshold turnover and the format for exceptional circumstances.

Tax experts say e-invoicing should make it easier for businesses, but adequate time needs to be given. “To the extent of e-invoices, data should be automatically populated in the GST returns and hence compliances would be simplified.

However, industry needs to be given adequate time to prepare for this significant change,” said Pratik Jain, national leader, indirect taxes, PwC.

It is clear that technology will continue to have a major play in the future of taxation in the country, Jain said. “Through e-way bill system, we already have a real-time authentication mechanism for manufacturers and traders, which essentially needs to be extended for service sector as well,” he said.


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Source: Economic Times
GST Dept can’t detain Vehicle for Deficiency in Lorry Receipt: Gujarat HC grants Interim Relief

GST Dept can’t detain Vehicle for Deficiency in Lorry Receipt: Gujarat HC grants Interim Relief

A two-judge bench of the Gujarat High Court has granted interim relief to a dealer where the Goods and Services Tax (GST) department had detained the goods for deficiency in the Lorry Receipt.

The department had seized the vehicle on the ground that the lorry receipt issued by the transporter is photocopy without the computerized serial number and contact number details.

The counsel for the petitioners, Advocate Uchit Sheth, submitted before the Court that the order of detention has been made on the ground that the lorry receipt issued by the transporter is photocopy without the computerized serial number and contact number details.

Under section 68 of the Central Goods and Services Tax Act, 2017, the Government may require the person-in-charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to carry with him such documents and such devices as may be prescribed.

As per Sub-rule (1) of Rule 138A of the Central Goods and Services Tax Rules, 2017, the person-in-charge of a conveyance is required to carry – (a) the invoice or bill of supply or delivery challan, as the case may be; and (b) a copy of the e-way bill in physical form or the e-way bill number in electronic form or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.

The petitioners, therefore, submitted that in case either of these documents is not carried by the person-in-charge of the conveyance, the respondents would be justified in resorting to action under section 129 of the CGST Act.

It was contended that since carrying the Lorry Receipt is not a requirement prescribed under rule 138A(1) of the rules and there is no statutory provision empowering the respondents to make an order of detention under section 129(1) of the CGST Act for any deficiency in the lorry receipt issued by the transporter, the impugned order of detention is without authority of law.

The two-judge bench comprising Justice Harsha Devani and Justice Bhargav D Karia held that “Prima facie, the contention raised by the learned advocate for the petitioner appears to be valid. Under the circumstances, a prima facie case has been made out for grant of interim relief as prayed for in the petition.”

“Stand over to 18th April 2019. By way of further interim relief, the respondents are directed to forthwith release the truck No.GJ-04-AW 1999 along with the goods contained therein,” the bench said.


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Source:Tax Scan
Changes planned in e-way bill system to contain GST evasion

Changes planned in e-way bill system to contain GST evasion

India is eyeing several changes to the electronic-way bill system, ranging from auto calculation of distance for movement of goods to barring businesses from generating multiple e-way bills based on one invoice, as it cracks down on evasion in the goods and services tax (GST) framework.

E-way bill system will be enabled to auto calculate the distance for movement of goods based on the postal PIN codes of a source and destination locations while allowing a variation of only 10%. That is if the system has displayed the distance between Place A and B, based on the PIN codes, as 655 km; then the user will be able to enter the actual distance up to 720 KM (655KMs + 65KM), according to the new conditions.

Tax experts reckon that tax evasion continues to be a major concern for the government, and it is increasingly relying on technology to plug the gaps.

GST eway

 

“The recent changes are another example of how the government is relying more on technology to ensure compliances — case in point being auto-population of the actual distance between supplier and recipient based on PIN codes and automatic blocking of an inter-state transaction for small composition dealers,” said Harpreet Singh, partner, indirect taxes, KPMG.

The proposed system will also bar generation of an e-way bill for interstate movement by composition taxpayer. This is being done to plug a loophole in the system as the GST Act does not allow the composition taxpayers to do Inter-state transactions.

“With some of these changes such as automatic calculation of a distance between two locations via PIN codes and one e-way bill for one invoice, coupled with a greater focus on RFID enabled vehicles, tracking the consignments might be easier for the government,” said Pratik Jain, national leader, indirect taxes, PwC.

However, it needs to be ensured that flexibility is built in the system to take care of exceptional situations such as diversion of vehicles due to road blockage, etc., where the actual distance traveled may be more than 10% of the distance calculated by the system, said Jain.

The new rules envisage not allowing generation of multiple e-way bills based on one invoice by any party — consignor, consignee, and transporter. That is, once an 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.

This has been done following representations from transporters.

An e-way bill is required for movement of goods worth more than Rs 50,000 across state borders. Trucks caught without e-way bills can be levied a penalty of up to Rs 10,000. Besides, the cargo itself can be inspected to ascertain tax evasion. A penalty to the tune of 100% of the tax being evaded can be levied along with the tax itself if evasion is proven and both the vehicle and goods can be impounded.

The e-way bill mechanism is an integral part of the GST regime that’s aimed at plugging evasion, which was one of the reasons cited by the government for subdued GST revenues prompting the GST Council and government to take steps to counter it.

The government has estimated Rs 6.43 lakh crore from GST in 2018-19. India rolled out GST from July 1, 2017, to replace multiple state and central levies.


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Source: Economic Times
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
GSTN Alert: Two New Features added in the Portal

GSTN Alert: Two New Features added in the Portal

The Goods and Services Tax Network ( GSTN ) has updated two new features in the official website including System Generated Acknowledgement of Application of Appeal and the Population of Data from EWB System into Form GSTR-1.

At the time of generating E-Way Bill for outward supply, taxpayers enter the details of outward supplies such as invoice number, Date, Value Tax etc.

With the new functionality added in the portal, the taxpayers can now easily import these details of outward supply invoices, as indicated in the e-way bill at the time of preparation of Form GSTR-1, by clicking the import ‘EWB Data’ button on the GST Portal in following tiles, (i) B2B Invoices (ii) B2C Large Invoices (iii) HSN-wise summary of Outward supplies.

The other new functionality enabled in the portal is an acknowledgment of Application of Appeal.

Under the GST Law, taxpayers shall submit an application of appeal before the first appellate authority and the authority must issue an acknowledgment to the taxpayer within the prescribed time. From now, if such an acknowledgment is not issued, then a system generated final acknowledgment shall be issued to the appellant with a remark “subject to validation of certified copies.”


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Source: Tax Scan.
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.


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Source: Economic Times.
Soon, no e-way bill if GST returns not filed for 6 months

Soon, no e-way bill if GST returns not filed for 6 months

Non-filers of GST returns for 6 consecutive months will soon be barred from generating e-way bills for movement of goods.

The Goods and Services Tax Network (GSTN) is developing such IT system that businesses who have not filed returns for two straight return filing cycle, which is 6 months, would be barred from generating e-way bills, an official said.

“As soon as the new IT system which will ensure barring of e-way Bill generation if returns are not filed for 6 months is put in place, the new rules will be notified,” an official told PTI.

The move, officials believe, would help check Goods and Services Tax (GST) evasion.

Central tax officers have detected 3,626 cases of GST evasion/violations cases, involving Rs 15,278.18 crore in April-December period.

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.

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 working towards integrating that 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.

As against the budgeted monthly revenue target of over Rs 1 lakh crore, GST collections have so far this fiscal averaged Rs 96,800 crore per month.


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Source: Times of India
GST rules: No e-way bill if returns not filed for two months

GST rules: No e-way bill if returns not filed for two months

In a bid to force non-compliant businesses to file returns regularly, the finance ministry has barred e-way bill generation while transporting consignment if the supplier or recipient of the cargo has not furnished returns for two consecutive tax periods under Goods and Services Tax (GST).

The e-way bill is required to be generated from a common portal by a business for movement of consignment worth more than `50,000. For this, the supplier/recipient furnishes part A of the form with details of GST identification number, the value of goods and invoice number among others. Further, part B of the e-way bill form is furnished by the transporter with details of vehicle used.

“This effectively means that businesses who fail to file returns cannot transport goods at all,” Rajat Mohan, a partner at AMRG & Associates, said.

The tax department has not been able to improve compliance in a significant manner since GST was launched in July 2017. Nearly 30% of eligible taxpayers continue to fail to file the summary return GSTR-3B by the deadline, which is set on the 20th of every month.

For instance, nearly 29% of the eligible 98.4 lakh taxpayers had not filed returns for November by the end of December. Similarly, for composition scheme taxpayers who are required to file quarterly returns, over 25% of nearly 18 lakh eligible taxpayers had not filed returns for the July-September quarter till December 27.

Combined with low compliance and truncated return-filing system, the tax department has found it difficult to rein in tax evasion as the flow of intelligence data is fragmented. The GST Council has announced that the new simplified return system would become operational from July this year. The cases of evasion has increased in the second year of GST.


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Source: Financial Express