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April 21, 2017CBEC suggests e-waybill for moving goods over ₹50,000
Moving goods worth more than Rs 50,000 under GST will require prior online registration of the consignment and securing an ‘e-way bill’ that tax officials can inspect anytime during the transit to check tax evasion.
The Central Board of Excise and Customs (CBEC) has issued draft rules on Electronic Way (e-way) bill that require registered entities to furnish, in a prescribed format, GST-Network (GSTN) website information relating to any goods worth more than Rs 50,000 they intend to move within a state or outside.
In current VAT regime waybill is usually required for inter-state movement of goods, however proposed GST provision makes it mandatory even for movement within a State. This will put an additional layer of documentation by way of prior online registration of the consignment. This is certainly not going to be received with enthusiasm by the industry. Requirement of waybill will particularly burden small businessmen with extra compliance costs.
When should an e-way bill be generated?
- E-way bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a Registered Person.
- E-way bill can be generated even when value of goods is less than Rs 50,000 OR supply is between unregistered persons.
Who can generate e-way bill?
Anyone of the supplier, transporter or recipient of the goods being transported can generate the e-way bill. At least one of them should do it compulsorily.
- Supplier – to fill PART A, FORM GST-INS 1
- Transporter – Fill form GST INS-1 if consignor does not.
- Recipient – to fill PART B, FORM GST-INS 1
Validity of an e-way bill
An e-way bill is valid for periods as listed below, which is based on the transported distance of the goods. It is unclear yet how the distance will be measured. Will it be shortest route from source to destination or the actual route taken by the transporter (likely). Validity is calculated from the date and time of generation of e-waybill-
Distance | Valid from | Valid for |
Less than 100km | Date & time at which e-way bill is generated | 1 day |
100km to 300km | Date & time at which e-way bill is generated | 3 days |
300km to 500km | Date & time at which e-way bill is generated | 5 days |
500km to 1000km | Date & time at which e-way bill is generated | 10 days |
1000km or more | Date & time at which e-way bill is generated | 15 days |
The Commissioner may extend the validity period of e-way bill for certain categories of goods.
The in charge of conveyance will be mandated to keep the invoice or bill of supply or delivery challan, and a copy of the e-way bill or the e-waybill number in physical or Radio Frequency Identification Device (RFID) format with him and must be attached to the conveyance. The tax commissioner or the authorized officer can demand the e-way bill or the number associated to verify the details upon all the inter-state and intra-state movement of goods and commodities.
The rules propose to authorise the tax commissioner or an officer empowered by him to intercept any conveyance to verify the e-way bill or the number in physical form for all inter-State and intra-State movement of goods.
The verification of physical conveyance can be taken out in the specific information of stealing of taxes as mandated by the rules. The guidelines further mentioned, “Where a vehicle has been intercepted and detained for a period exceeding 30 minutes, the transporter may upload the said information in (prescribed form) on the common (GSTN) portal.” A summary report of the inspection of goods would be expected to be submitted within 24 hours of inspection and the final report within three days.
Other Points to remember:
In case transporter has to shift/transfer the goods from one conveyance to another due to any reason, say accident, some fault in conveyance, technical issues or permit issues, Then transporter has to fill fresh FORM GST INS-01. [Rule 1(3)]
Where multiple consignments are intended to be transported in one conveyance, the transporter shall indicate the serial number of e-way bills generated in respect of each such consignment and a consolidated e-way bill in FORM GST INS-02 shall be generated by him. [Rule 1(4)]
Where multiple consignments are transported in one conveyance and some consignor has not generated FORM GST INS-01 (may be due to the reason that his consignment value is less than Rs. 50,000/-) and however the total value of goods carried in the conveyance for all consignments is more than fifty thousand rupees, the transporter shall generate FORM GST INS-01 on the basis of invoice or bill of supply or delivery challan, as the case may be, and also generate a consolidated e-way bill in FORM GST INS-02 prior to the movement of goods. [proviso to Rule 1(4)]
