GOODS AND SERVICE TAX- e- Way Bill

CA SUDHIR HALAKHANDI

(English Version)

GOODS AND SERVICE TAX- FOR TAX PAYERS (SMALL TRADERS AND MSMEs EDITION) 98280-67256 (USE ONLY FOR WhatsApp) ELECRONIC WAY BILL UNDER GST e-Way Bill

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In pre GST regime i.e. at present when movement of Goods takes place from one state to another state there is a need of Road Permit. In some states it is applicable on all the commodities and in others on selected commodities. The road permit is generated electronically in almost all the states but trade and Industry considers these road permits as hurdles in doing business and since you are expecting simplification of procedures hence it was expected that Road permits will be removed in GST but recently our lawmakers have introduced the Draft rules for Electronic Way bills and as per these rules you will find that Road permits are not only here to stay in GST but their scope will also be increased and it will be a very bad sign for simplification and against the expectation of Trade and Industry .

Let us try to understand the provision of Electronic Way bills in the form of Questions and Answers which we are receiving since introduction of these Rules (yet to be Notified):ELECTRONIC WAY BILL- e-Way Bill

Question:Is e-Way Bill is just like Road permit which are applicable at present? Is it applicable on Inter-State supply only or it will be applicable on Intra-State supply also? Please Answer.

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Ca Sudhir Halakhandi:Yes you can equate it with road permit and it will be generated from the common GST portal but its scope it too wide. It will be applicable on movement of inter-state as well as Intra-state supply of Goods.

Further it will be applicable on all the commodities and Goods instead of certain or notified Goods.

Question:On which amount the e-Way Bill is required?

Ca Sudhir Halakhandi:Yes, e-Way Bill will be applicable on every consignment of over Rs. 50000.00 where movement of Goods is involved.

Question:Will it apply on each supply of Goods exceeding Rs. 50000.00?

Ca Sudhir Halakhandi:Not only supply, it will be applicable on every movement of Goods which is occasioned by the Following:(i). in relation to a supply; or (ii). for reason other than supply; (iii). Due to inward supply from an unregistered person.

Hence it will be applicable on every movement of Goods whether it is connected with the sale or supply or not.

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Question:Where the details for e-Way Bill will be filed and from where eWay Bill will be generated.

Ca Sudhir Halakhandi:It will be generated from the GST common portal and the details of the same will be filed by the consignor and in case of unregistered dealer supply by the consignee and with the help of the information filed abovementioned person the Consignor/consignee or transporter, as the case may be, will generate the e-Way Bill from the common GST Portal.

Naturally for this purpose you will need a good computer and internet connection.

Question:Will there be a system of checking of vehicles on road?

Ca Sudhir Halakhandi:This seems to be a biggest hurdle in present regime but unfortunately the new one will have the same problem.

Yes it will be there but it is specifically provided that in one state the goods will be checked only once. The second checking in the same state will only be taken when there will be specific information of ‘Tax evasion� with the department.

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Question:Is there any provision to minimize the wastage of time during the checking of the vehicle?

Ca Sudhir Halakhandi:Yes in the e-way bills rules it is provided that if the vehicle is intercepted and detained for more than 30 Minutes for checking then transporter may upload the said information on the GST common portal through an online form.

What will happen when the transporter will upload this information on the GST portal is not known but certainly it will be a moral check on the officers to clear the vehicle within time.

This is a good provision and it will certainly increase the speed of clearance of the vehicles.

Question:Is there any time limit for using the e-way bill once it is generated from the common portal?

CA Sudhir Halakhandi Yes there will be a restricted period during which the e-way bill has to be used and after that its validity will end. This time limit is as under:-

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S.NO. 1.

2.

3.

4.

5.

Distance Less than 100 km 100 km or more but less than 300 km 300 km or More but not more than 500 km 500 km or More but not more than 1000 km 1000 km or More

Validity Period One day Three days Five days Ten days Fifteen days

The validity of an e-way bill shall be calculated from the day on which it is generated from the common GST portal.

Question:Once an e-way bill is generated but if the goods are not transported for any reason then is it possible to cancel the e-way bill?

CA Sudhir Halakhandi Yes in such a situation the electronically generated e-way bill can be cancelled within 24 hours of its generation from the GST portal.

Question:What is RFID technique and is it mandatory for each vehicle to have this technique under GST regime.

CA Sudhir Halakhandi

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The vehicles have to carry the hard copy of the e-way bill with them and if the hard copy of the e-way bill is not with the vehicle then the e-way bill has to be mapped through Radio frequency Identification Device- RFID. Hence it will not be mandatory for each vehicle to have his RFID technique with it.

But in case of certain Transporters, the commissioner has the power to make this RFID technique mandatory through a notification and in that case these types of transporters shall have to keep this technique mandatorily on their vehicles.

Radio-frequency identification device (RFID) uses electromagnetic fields to automatically identify and track tags attached to objects.

The tags contain electronically stored information. Passive tags collect energy from a nearby RFID reader's interrogating radio waves. Active tags have a local power source such as a battery and may operate at thousands of meters from the RFID reader. Unlike a barcode, the tag need not be within the line of sight of the reader, so it may be embedded in the tracked object. RFID is one method for Automatic Identification and Data Capture (AIDC).

Question:One more question with respect to e-way bill since you are studying the GST since long back. What is your opinion on introduction of eway bill on almost all the transactions?

Ca Sudhir Halakhandi:See in My opinion the GST procedures should be kept at minimum and simplified but it appears that the Lawmakers are not agree with this basic principal hence they are making these type of provisions which are considered hurdle in doing business.

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What is the reaction of the Trade and Industry on this particular provision?

Ca Sudhir Halakhandi The Trade and Industry is expecting simplification in the procedures and as per the news reports are not happy with these provisions of e-way bill on two grounds.

First it is applicable on all the movement of Goods whether it is inter-state or intera-state and secondly the amount of Rs.50000.00 is too low.

In my opinion the amount should be Rs.5.00 Lakhs and the e-way bill should be made applicable only on interstate supply.

The rules are still not notified so we should wait for some good News in final Notification about the e-way bill rules.

FROM THE DESK OF THE WRITER The material has been prepared keeping in mind the requirement of Small Traders and MSME Industries. Please submit your comment and suggestions to 9828067256 through WhatsApp. -Ca Sudhir Halakhandi sudhirhalakhandi@gmail.com Visit us on www.halakhandi.com to down load all the GST Articles.

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