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The first important thing to note in this regard is that, what gives the
power to these rules. The rules for E way bill are covered by CGST Act, meaning
the Central Government is empowered here to make rules in this regard or even
amend the rules for the sake.
What does rules mean?
In a tax law, a rule is something which defines about the particular Act or any
new entries which are added to a particular Act, or something which gives power
to the Act or it is like instruction guide to understand the act which states
the way the things are should be done.
Lets learn about the rules that govern the Eway bill and also understand the
process from the
E way bill rules that are prescribed in the Act governing Eway
bill.
Which Act governs the Eway bill : CGST Act 2017
What are the rules we are going to follow when complying with Eway bill
: Central Goods and Services Tax (Sixth Amendment) Rules, 2017.
When these rules come into force in order to mandatorily comply with it
: These rules, they shall come into force on such date as the Central
Government may, by notification in the Official Gazette, appoint.
Rule which tell us when and who generates the eway bill and the possible
scenarios where different persons generates the eway bill :
Principle Rule : It is the principle rule which defines the
whole E way bill CGST Act 2017, which tells that
Every registered person who causes movement of goods of consignment value
exceeding fifty thousand rupees—
in relation to a supply; or
for reasons other than supply; or
due
to inward supply from an unregistered person,
shall, before commencement of such movement, furnish information relating to the
said goods in Part A of FORM GST EWB-01, electronically, on the common portal.
Amendments : Value of consignment shall exclude the value of
exempt supply for determining the limit of 50k.
How to detect the value of Consignment : Value of consignment = Value declared
in an invoice, a bill of supply or a delivery Challan, as the case may be,
issued in respect of the said consignment (+) central tax (CGST) , State (SGST)
or Union territory tax (UTGST), integrated tax (IGST) and cess charged, if any
(-) value of exempt supplies.
And Where the goods are transported by the registered person as a consignor or
the recipient of supply as the consignee, whether in his own conveyance or a
hired one or by railways or by air or by vessel, the said person or the
recipient may generate the e-way bill in FORM GST EWB-01 electronically on the
common portal only after furnishing information in Part B of FORM GST EWB-01.
Meaning for the movement of goods in own conveyance exceeding the limit of Rs.
50,000 here for the movement of the said goods, the supplier or recipient
themselves act as transporter of the said goods and thereby had to comply with
the provisions by filing the Part B of the Form which in case would have been
filed by the transporter had the goods been moved by the transporter.
Amendments : Own conveyance or a hired one or a public
conveyance (BUS ETC), by road, the said person shall. I think Bus as mode of
conveyance has been included in the above said rule.
Finer Point Study :
Part A of Eway bill Form Contains following details : Type of Supply – Such as
Outward, inward, for resale etc., ; Details of supplier – GSTIN, Principal place
of business and details of recipient – GSTIN of recipient, recipients principal
or additional place of business; Other details of invoice such as – Invoice
Number, Date, Taxable value of goods, Tax Classifications, Products name and HSN
Code
Part B of Ewaybill Form Contains following details : Transporters details –
Transporters GSTIN/ Transporter ID, Vehicle Number, Approx. Distance for which
the goods are proposed to be moved
Where the e-way bill is not generated neither by the supplier or the recipient
and the goods are handed over to a transporter for transportation by road, the
registered person shall furnish the information relating to the transporter in
Part B of FORM GST EWB-01 on the common portal and the e-way bill shall be
generated by the transporter in such cases on the common portal on the basis of
the information furnished by the registered person in form of Invoice or
Delivery Challan and shall fill the details in Part A of FORM GST EWB-01 from
the same.
Finer Point Study :
Even when the value of the consignment is less than fifty thousand rupees, it is
left to the option registered person or, as the case may be, the transporter to
generate and carry the Eway bill. Law is mandatory only when the consignment
value crosses Rs. 50,000/-
where the movement is caused by an unregistered person either in his own
conveyance or a hired one or through a transporter, he or the transporter may,
at their option, generate the e-way bill in FORM GST EWB-01 on the common portal
in the manner specified
Finer Point Study :
Even an unregistered dealer can cause movement of goods either in his own
conveyance or hired one by having a separate login at common portal, where the
unregistered person himself or the transporter at their option generate and
carry the Eway bill. But in the cases, where the goods are supplied by an
unregistered supplier to a recipient who is registered, the movement shall be
said to be caused by such recipient if the recipient is known at the time of
commencement of the movement of goods.
The information in Part A of FORM GST EWB-01 shall be furnished only by the
consignor or the recipient of the supply as consignee where the goods are
transported by railways or by air or by vessel and not by the transporter of the
vehicle.
Rule talks about EBN so what is this Unique E Way bill Number : Upon generation
of the e-way bill on the common portal, a unique e-way bill number (EBN) shall
be made available to the supplier, the recipient and the transporter on the
common portal which will enable movement of goods under Eway bill mechanism
under GST.
Updation of Vehicle number in transit or movement of goods in cases of repairs
or due to other reasons : Any transporter transferring goods from one conveyance
to another in the course of transit shall, before such transfer and further
movement of goods, update the details of conveyance in the e-way bill on the
common portal in FORM GST EWB-01 and the earlier filed Eway bill Form stays as
it as but with updated Vehicle details in it. But where in the goods are
transported for a distance of less than ten kilometer’s within the State or
Union territory from the place of business of the transporter finally to the
place of business of the consignee, the details of conveyance may not be updated
in the e-way bill.
Amendments 1 : 10 km been replaced by, 50 km wherever applicable.
Amendments 2 : Unique number shall be valid for 15 days instead of 72 hours for
updation of part B
Eway bill rules with regards to multiple consignments transported in one
consignment : For multiple consignments intended to be transported in one
conveyance, the transporter may indicate the serial number of e-way bills
generated in respect of each such consignment electronically on the common
portal and a consolidated e-way bill in FORM GST EWB-02 maybe generated by him
on the said common portal prior to the movement of goods.
Finer Point Study : If goods are moved by transporter then, transporter prepares
the consolidated eway bill, if moved by the supplier in his own conveyance then
such supplier is the transporter of the goods for the above rules and he shall
generate consolidated eway bill.
Rules regarding availability of data filed in Part A of Eway bill Form for
furnishing GSTR 1 return of the supplier : The rule says that the information
furnished in Part A of FORM GST EWB-01 shall be made available to the registered
supplier on the common portal who may utilize the same for furnishing details in
FORM GSTR-1 and where such information has been furnished by an unregistered
supplier in FORM GST EWB-01, he shall be informed electronically, if the mobile
number or the e mail is available.
Rules regarding cancellation of Eway bills : The rule tells that, when
e-way bill has been generated following these rules or, where
generated following the rules but not transported or are not transported as per
the details furnished in the e-way bill
then such e-way bill may be cancelled electronically on the common portal,
either directly or through a Facilitation Centre notified by the Commissioner,
within 24 hours of generation of the e-way bill
Rules regarding validity of Eway bill : An e-way bill or a consolidated e-way
bill generated under this rule shall be valid for the period as mentioned
# upto a distance of One hundred Kilometer, the validity period of eway bill
stays to be 1 day
# For every 100 km or part thereof thereafter, the validity period is added by
one additional day
Exceptional Cases : Under circumstances of an exceptional nature, where the
goods cannot be transported within the validity period of the e-way bill, the
Commissioner may by notification extend the validity period of e-way bill and
the transporter then shall generate another e-way bill after updating the
details in Part B of FORM GST EWB-01.
Amendments : (a) Up to 100 km one days in case other than over dimensional cargo
; (b) For every 100 km or part one additional day in case other than over
dimensional cargo; (c) Up to 20 km one day for over dimensional cargo .For every
20 km or part one additional day for over dimensional cargo
Finer Point Study :
What do we mean by Over dimensional Cargo ?
In simplest terms, ODC or Over
Dimensional Cargo is a cargo that protrudes outside the loading deck of the
vehicle transporting the cargo. If a truck with loading platform length of 20
feet is loaded with cargo like TMT bars of length 22 feet, then the TMT bars
qualifies as Over-Dimension Cargo. If the same TMT bars were loaded on a vehicle
with platform length of 22+ feet, it would have been classified as Normal Cargo
rather than ODC. This definition of ODC is to resist industry from transporting
Normal Cargo unnecessarily as ODC for small economic benefits compromising road
user’s safety.
Rules regarding acceptance or rejection of eway bill : The details of e-way bill
generated on the common portal shall be made available to the recipient, if
registered, on the common portal, who shall communicate his acceptance or
rejection of the consignment covered by the e-way bill and this facility shall
be made available in the common portal itself or through SMS or from Android API
interface. But wherein, the recipient does not communicates his acceptance or
rejection within seventy two hours of the details being made available to him on
the common portal, it shall be deemed that he has accepted the said details.
Rules exempting certain class of goods from operation of Eway bill on them :
Notwithstanding anything contained in this rule, no e-way bill is required to be
generated for
Specified goods (by way of annexure) which are being transported;
Finer Point Study :
Specified goods : These include domesticated animals like live bovine animals,
swine and fish, fruits and vegetables, fresh milk, honey, seeds, cereals and
flour. Also exempted is movement of betel leaves, non-alcoholic toddy, raw silk,
khadi, earthen pot and clay lamps, puja samagri and hearing aids. The list also
includes cooking gas (LPG) for supply to households and kerosene for sale under
public distribution system (PDS), postal baggage, currency, jewellery and used
personal and household effects.
Goods are being transported by a non-motorized conveyance;
Finer Point Study :
Non motorized conveyance: Non-motorized Transportation (also known as active
transportation and human powered transportation) includes walking and bicycling,
and variants such as small-wheeled transport (cycle rickshaws, skates,
skateboards, push scooters and hand carts) and wheelchair travel.
Goods are being transported from the port, airport, air cargo complex and land
customs station to an inland container depot or a container freight station for
clearance by Customs; and
in respect of movement of goods within such areas as are notified by GST Rules
of the concerned states
Rules which clarifies what are the documents that are required to be carried
by person in charge of conveyance : The person in charge of a conveyance shall
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 or the e-way bill number, either physically or
mapped to a Radio Frequency Identification Device embedded on to the conveyance
in such manner as may be notified by the Commissioner.
Conclusion : In the recently concluded GST meeting as on 10th of March 2018,we
saw few many relaxations with respect to generation of eway bills such as :
For goods transported from consignor place to transporters place for further
transportation within a distance of up to 50 km , the Council decided to do away
with Eway bill generation for this type of cases
For goods transported from transporters place to consignees place for a distance
less than 50 km, then also eway bill is not required.
For goods transported up to a distance of twenty kilometers from the place of
the business of the consignor to a weighbridge for weighing or from the
weighbridge back to the place of the business of the said consignor subject to
the condition that the movement of goods is accompanied by a delivery Challan.
Even in this case the eway bill was relaxed and the Eway bill shall not be
generated.
With Eway bill to be rolled back in from April 1,2018 onwards for inter-state
movement of goods these set of relaxations and amendments are certainly welcomed
by trades and industry as these will ease out their compliance profile. But to
streamline the task of generating Eway bill is no task of human brain alone, one
also needs the support of ERP system to comply with these rules of Eway bill to
prepare eway bill on the go, when an invoice is prepared and also to export the
Eway bill Form into JSON format to be eligible to upload on the common portal
and Tally.ERP 9 would be a one stop pit shop for all those who wants to know
how
to generate eway bill and generate it which could be easily injected into the
existing system of business operations with ease.
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