Goods accompanied by soft copy of invoice instead of physical copy, penalty u/s 51(7)of PVAT Act not warranted when transaction is genuineThursday, May 5, 2022
The Hon'ble Punjab VAT Tribunal in the case of Rakesh jewellers vs State of Punjab Appeal no. 227 of 2018 dated 22.04.2022 has quashed a penalty u/s 51(7)(b) of Punjab VAT Act which was levied on the ground that goods i.e. 1 Kg Gold Bar was not accompanying the physical copy of invoice at the time of detention of goods.
The Tribunal noted that the goods were accompanied by soft of copy of invoice and the genuineness of the transaction was proved by the appellant before the inquiry officer by producing the books of accounts and also the seller concerned. The seller also confirmed the fact before the inquiry officer that the physical copy of invoice could not be issued due to printer not working, but a soft copy was given to the appellant. In view of all the facts, Tribunal concluded that no case u/s 51(7)(b) is made out and thus deleted the penalty of Rs 9 lakh approximately. The judgement can be downloaded herebelow RAKESH JEWELLERS VS STATE OF PUNJAB 
Proposed amendments in GST in Budget 2021Wednesday, February 3, 2021Amendment in section 7-Scope of supply: Section of 7 of the CGST Act, 2017 deals with the scope
of supply. It defines supply in an inclusive manner. It is proposed to add
clause (aa) in sub-section 1 of section 7 which runs as under: “(aa)
the activities or transactions, by a person, other than an individual, to its
members or constituents or vice versa, for cash, deferred payment or other
valuable consideration.
Explanation.––For
the purposes of this clause, it is hereby clarified that, notwithstanding
anything contained in any other law for the time being in force or any
judgment, decree or order of any Court, tribunal or authority, the person and
its members or constituents shall be deemed to be two separate persons and the
supply of 77 activities or transactions inter se shall be deemed to take place
from one such person to another;”
The
above amendment seem to have been carried out to nulify the landmark judgement
of Hon’ble Supreme Court in the case of Calcutta. Club Limited (2017) 5 SCC 356
wherein the court held that service tax need not be charged
by clubs for services to its members. The verdict was seen as also being
applicable in GST as GST has replaced service tax.
Now
after this amendment such transaction and activities will be covered by scope of
supply. It
is pertinent to mention here that along with this amendment simultaneously para
7 of Schedule II to CGST Act is also proposed to be omitted, which provided the
similar provisions which was deemed to be as supply even without consideration.
Now after the amendment the said activites are itself included in the
definition of scope of supply with a specific explanation overriding any other
law or judgement contrary to it. Amendment in section 16-Additional
condition for claiming ITC:
Section 16 of the CGST Act deals with the
conditions for claiming input tax credit by any person. An additional condition
is proposed to be added in section 16 which mandates that the invoice or debit
note on the basis of which credit is taken must be uploaded in GSTR-1 by the
supplier and the same should also have been communicated to the recipient in
terms of procedure laid down in section 37. The proposed amendment is as
follows:
“(aa)
the details of the invoice or debit note referred to in clause (a) has been
furnished by the supplier in the statement of outward supplies and such details
have been communicated to the recipient of such invoice or debit note in the
manner specified under section 37;”.
It
is pertinent to mention here that the proposed amendment seem to have been
added to provide a legal backing for Rule 36(4) of CGST Rules, 2017, which
allows only 5% ITC in excess of eligible ITC available in respect of invoices
or debit notes the details of which have been uploaded by the suppliers in
GSTR-1 u/s 37(1) of CGST Act, if that be the case can it be said Rule 36(4)
till date is ultra vires of the Act, is a question which could be subject to
judicial scrutiny.
Amendment
in section 35 and 44-No requirement of GST audit:
Section 35(5) which mandated
for audit of annual accounts by a chartered accountant or cost accountant if
turnover exceeded prescribed limit, is proposed to be omitted. Now after the
amendment there will be no need of GST audit u/s 35(5). Section 44
simultaneously has also been proposed to be amended to provide that every
registered person shall file an annual return which may include a self certified
reconciliation statement, reconciling the value of supplies declared in the
return furnished for the financial year, with the audited annual financial
statement for every financial year electronically, within such time and in such
form and in such manner as may be prescribed.
The
time period earlier prescribed for filing annual return as 31st
December every year now is also proposed to be amended within such time as may
be prescribed.
Amendment in section 50-Interest only
on tax paid through cash ledger:
Section 50 is proposed to be amended to
provide that interest on tax payable in respect of supplies made during a tax
period and declared in the return for the said period furnished after the due
date in accordance with section 39 of
the Act, i.e. after the due date of GSTR-3B, shall
be payable on that portion of the tax which is paid by debiting the electronic
cash ledger.
In
nut shel the proposed amendment provide for levy on interest only on that part
of tax which is paid from the cash
ledger, if the return GSTR-3B is filed late.
This amendment is proposed wef 01.07.2017.
Similar amendment was also carried out in the Finance Act, 2019 however it was
made applicable wef 01.09.2020. Now, the same is done with retrospective
effect.
Amendment in section 75-change in
definition of self assessed tax:
Section
75(12) which provides for the recovery of self assessed tax which remains
unpaid as per GSTR-3b i.e. return filed u/s 39, is proposed to be amended to
add an explanation which defines the word self assessment tax.
The
proposed amendment defines self assessment tax as including the tax payable in respect of
details of outward supplies furnished u/s 37 but not included in a return
furnished u/s 39.
In other words the tax liability declared
in GSTR-1 but not declared in GSTR-3b will be considered as self assessed
tax u/s 75(12) and recovery of such tax can be initiated u/s 79 of CGST Act,
2017. It is pertinent to mention here that section 79 provides various modes of
recovery of tax including attachment of immovable property etc. Amendment
in section 129, 130 and 74: Section
129 of CGST Act which deals with detention, seizure and release of goods and
conveyance in transit has been amended
to a large extent.
Unamended
Section 129(1) provides that goods in
transit detained on the ground of their transportation in contravention
of the provisions of the Act or rules shall be released either
(a) on
100% payment of tax and penalty equal to 100% of tax payable in case of taxable
goods and 2% of value of goods or 25000 which ever is less where the owner
comes forward and (b) on
deposit of applicable tax along with 50% of value of goods and in case of
exempted goods in such case on deposit of 5% of value of exempted goods or
25000 whichever is less where the owner does not come forward
It is proposed to amend the above Clauses
(a) and (b) of section 129(1) to provide that goods shall be released
(a) on penalty of 200% of tax
payable on the goods in question, where owner comes forward
and
(b)on payment of penalty @
50% of the value of goods or 200% of tax payable whichever is higher, where the
owner does not come forward. The
word applicable tax has been omitted in the proposed amendment in both the
above clauses. However the proposed amendment would not result in any relief from
the amount payable under section 129 as with deltetion of the words applicable
tax, penalty amount has been doubled. The unamended provisions give an impression of
double taxation because not only applicable tax is supposed to be paid u/s 129
but also is required to be paid in the returns filed u/s 39, since the ITC of tax
paid u/s 129 is denied u/s 17(5) to the recipient, so in order to give ITC of
the applicable tax on goods in question one has to pay applicable tax again u/s
39 in the return filed by such person. After
the amendment only penalty is payable u/s 129(1)(a) or (b), which can be
further contested in appeal. Amendment in section 74: Consequent to the amendment in section
129(1)(a) and (b) a simultaneous amendment is made in section 74 so as to make
seizure and confiscation of goods and conveyances in transit a separate proceeding
from recovery of tax. No provisional release of goods
detained u/s 129 on bond: Sub-section
2 of section 129 is proposed to be omitted which provides for application of
section 67(6) to the goods detained u/s 129. Section 67(6) provides for
provisional release of goods seized upon execution of bond and furnishing of a
security or on payment of tax, interest
and penalty payable. Now after the
amendment there will no provisional release of goods u/s 129. Proceedings u/s 129 to be completed
within 14 days: Section
129(3) is also proposed to be amended so
as to provide that notice after detention or seizure will be issued within 7
days specifying the penalty payable and thereafter an order shall be passed within a period of seven
days from the date of service of notice for payment of penalty under clasue (a)
or clause (b) of section 129(1). Sub-section
6 of section 129 is also proposed to be amended to provide that if a person transporting the goods or owner of the goods fails to pay the amount of penalty u/s 129(1) within
fifteen days from the date of receipt of
order then goods or conveyance so detained or seized shall be liable to be sold
or disposed off in the manner and within the time prescribed. The
interesting thing in the amendment is that both goods and vehicle can be sold
or disposed off to realize the penalty amount in case of non payment, However
an option is proposed to be given to the transporter to get his conveyance released
on payment of Rs. 1 Lakh or penalty u/s 129(3) which ever is less. So
the proposed amendment in section 129(6) itself provide for a procedure for realization
of penalty instead of initiating proceedings u/s 130 Amendment in section 130: Consequent to amendment in section 129,
amendment in second proviso to section 130(2) is also made to provide for that the aggregate
amount of fine in lieu of confiscation and penalty shall not be less than 100% of
the tax payable on such goods, which in the pre-amended law is the amount equal
to the penalty payable u/s 129(1). Sub-section
3 of section 130 is also proposed to be omitted which makes the owner of the
goods liable for payment of tax, penalty or other charges payable in respect of
goods or conveyance confiscated. That means after the omission of sub section 3
only fine in lieu of confiscation and penalty which shall not be less than 100%
of the tax payable, will be payable u/s 130 where the goods are confiscated. Amendment in section 107-25%
pre-deposit in appeal against order u/s
129 : Amendment in section 83: Section 83 is amended so as to provide that
that whenever proceedings under chapter XII(Assessments) Chapter XIV(Inspection
, search and seizure) or Chapter XV(demand and recovery) are initiated the
Commissioner may for the purpose of protecting interest of the Govt Revenue may
provisionaly attach any propery belonging to any taxable person or any person
specified u/s 122(1A). In the unamended section attachment could be done only
during the pendency of proceedings u/s 62,64,67,73 or 74. Amendment in section 16 of IGST Act- There
is a proposal for a major amendment in section 16 of IGST Act. Section 16(3) of
IGST Act today provides that Export of goods or services can be done in two
ways One
With payment of IGST where refund is automatically given by customs Two
without payment of IGST where refund has to be applied of unutilized Input tax
credit Now
the proposed amendment provides that export of goods or services will be done
only without payment of IGST under a bond or LUT. It
is further provided in the proposed amendment that in case of non-realisation
of sale proceeds within the time limit as specified under The Foreign exchange
Management Act, 1999, the refund obtained would be deposited within 30 days along
with interest. It
is pertinent to mention here that recently a similar Rule 96B was introduced
vide Notification No 16/2020 Dated 23.03.2020. It seems this proposed amendment
u/s 16 is also introduced to give a legal backing to the Rule 96B. It is
strange that rules are introduced before the relevant amendment under the Act. Under
the proposed amendment it is further provided that export of goods or services
with payment of IGST will be made only by those class of persons or in case of
those class of goods, which are notified by the Government on the
recommendation of the GST Council.
All the proposed amendments in the GST
will be applicable from such date as the Central Government may by notification
appoint.
ONE TIME SETTLEMENT SCHEME UNDER PUNJAB VAT ACT AND CST ACTMonday, January 25, 2021With the advent of GST and dawn of
old indirect tax regime in the form of
VAT, service tax and central excise etc, the State and Central
Governments are looking forward to bring an end to the litigation in the older
regime and in consequence thereof we are witnessing lot of dispute resolution
schemes introduced by Central and State Governments. The Punjab Government, Department of
Excise and Taxation has also introduced a one time settlement scheme for
outstanding dues under Punjab VAT Act , 2005 and CST Act, 1956(hereinafter
called as relevant Acts) on 18.01.2021 and implemented wef 15.01.2021. The
scheme aims at giving relief to the small taxpayers in the form of waiver from
interest penalties and partial waiver from tax already due in the assessments.
The various features of the scheme are as under: 1. Applicability: The scheme is applicable for all
the outstanding dues created in assessments completed till 31st
December 2020 under the Punjab VAT Act, 2005 and CST Act, 1956. One has to
apply under the scheme by 30th April 2021.
2. Who
can apply: Any
persons whose assessment has been made under the relevant Act till 31st
December 2020 is eligible to apply under the scheme. Scheme is not applicable
for those persons on whom penalty or other demand has been imposed/raised
without assessment, for example scheme is not applicable for road side penalty
u/s 51 of the Punjab VAT Act, 2005.
3.
Procedure: (a) A person seeking to apply under
the scheme has to file an application in form OTS-1.
(b) Additional statutory forms for example C, F, H , I etc if any, which could not be produced at the
time of assessment can also be submitted
along with application for further reduction in additional demand.
(c)Along with the application proof
of payment of tax determined under the scheme after waiver has also to be
submitted.
(d) Once application is submitted an
acknowledgement in form OTS-2 shall be issued.
(e) If all the tax determined and
deposited is found to be correct along with other particulars required to be
mentioned in the application, an order of settlement in form OTS-4 shall be
passed or
(f) If there is any deficiency the a
notice in OTS-3 will be issued to complete the same within 7 days.
4. Appeal
cases: The scheme
is also applicable for appeal cases i.e cases where appeal is pending before
any of the appellate authorities i.e the Deputy Excise and taxation
commissioner (Appeals) or Tribunal or High Court or Supreme court. However in
appeal cases a declaration shall be submitted that once the dues are settled
under the scheme , the applicant shall withdraw such appeal within a period of
seven days from the date of communication of order of settlement and the proof
thereof shall be submitted to the concerned officer.
5. Extent
of waiver: The
scheme provides for waiver of 100% of interest and penalty upto an additional
demand of Rs. 500000/- and additional 90% waiver from tax in case where
additional demand is upto Rs. 100000/-. There is no relief to taxpayers whose
additional demand is more than Rs. 5 lakh. It is pertinent to mention here that
additional demand is ussualy the sum total of tax interest and penalty imposed
in the assessment order.
The slab of additional demand has to
be calculated (so far CST Act is concerned ) after reduction on account of
additional statutory declaration forms.
It can be explained with the help of
an example as follows:
Now in above example although
additional demand as per assessment order is 150000/- but after submission of
additional statutory forms if the reduction in tax and interest comes to Rs.
50000/- then the slab for giving waiver under the scheme would be Rs. 100000/-
and thus there will be waiver from tax element
left after reduction @ 90% apart
from 100% waiver from interest and penalty.
In case of appeal where 25% of
additional demand is already deposited which was a pre-requisite for
entertaining an appeal on merits u/s 62(5) of Punjab VAT Act, 2005, the waiver
will be such 25% of additional demand or the amount of waiver as per scheme as
discussed above whichever is higher.
Certain
terms and conditions:
(a)Application in form OTS-1 has to
be filed saperately for every assessment year and accordingly order of
settlement shall be issued under the relevant Act.
(b) No refund shall be given in
respect of 25% deposited of additional demand in appeal cases.
(c) In appeal casee appeal has to be
withdrawn within 7 days from the communication of order of settlement otherwise
the order stands cancelled.
(d) An order of settlement shall not
be reopened in any proceedings by way of review or revision or any other
proceedings under the relevant Act.
(e) Any determined amount paid
undrer the scheme shall not be refundable.
(f) No appeals against the
settlement order shall lie before any of the appellate authorities
(g) Any tax shown as paid in the assessment
order if is later found to be actually unpaid, then the same shall be
recoverable along with applicable interest and penalty, if any, under the
relevant provisions of the Act, notwithstanding with the scheme.
Table
of waiver
The
Notification of scheme can be downloaded herebelow: AADHAR Authentication process under GST RegistrationSaturday, August 22, 2020
Legality of withholding refunds of exporters as per circular No. 131/1/2020-GSTSaturday, May 23, 2020
Exports
under GST are considered as zero rated i.e. no tax is payable on export of
goods or services. A person making zero rated supply is eligible under GST to
claim for refund of unutilized input tax credit. The refund can be claimed by
an exporter in two ways as stated in section 16 of IGST act, 2017:
Retrospective amendment in section 140 of CGST Act-An overviewWednesday, May 20, 2020
Whenever
a new tax regime replaces an old tax regime there are numerous changes which a
taxpayer faces and there are lot of
legal challenges in the transition from old regime to new regime. For the
smooth transition of the new tax regime it is quite common to introduce the
transitional provisions under the new tax law.
RECENT LEGAL ISSUES IN GST REFUNDSSaturday, May 16, 2020
Refunds
are the important part of any tax legislation. Refund is a drawback of the
excess taxes paid to the Government subject to the conditions laid down in any
law. Article 265 of our constitution provides a base behind legislation of
refund provisions under any tax law, which provides that no tax shall be levied
or collected except with the authority of law.
Power to extend due date of TRAN-1 AND TRAN-2 in certain cases enhanced to 31.03.2020 and 30.04.2020Thursday, January 2, 2020
The Central Government has enhanced the date upto which the submission of Tran-1 and Tran-2 may be allowed to be filed to 31.03.2020
and 30.04.2020 respectively. Earlier this date was 31.12.2019 for Tran-1 and
31.01.2020 for Tran-2 form. This has been done by amendment in CGST Rules, vide
Notification No. 2/2020 Central Tax.
Certain amendments in CGST Act, 2017 made vide Finance Act, 2019 notified wef 01.01.2020.
Central Government has implemented certain provisions of Finance Act, 2019 wef 01.01.2020. It is pertinent to mention here that clauses 92 to 112 and section 114 of the finance Act, 2019 which related to amendment in the CGST Act, 2017 are to come into force on such date as the
Central Government may, by notification in the Official Gazette, appoint. Section 103 of the Finance Act, 2019 has already been notified wef 01.09.2019 which related to the amendment in section 54 providing of Sub-section 8A which allowed the Government to disburse the refund of State tax in the manner as may be prescribed.
Blocking of input tax credit-New Rule 86A introduced under GST.Friday, December 27, 2019
Rule
86A in the CGST Rules vide notification No 75/2019 has been introduced w.e.f.
26.12.2019 to empower the revenue to impose additional condition/restriction on
use of amount of input tax credit available in the electronic credit ledger. This
rule has given drastic powers to the Department to restrict the credit of any
person in certain cases where there is reason to believe that ITC is availed
fraudulently or is ineligible.
ITC not reflected in GSTR-2A to be allowed only to the extent of 20%-Due date of Tran-1 and Tran-2 extended in some casesThursday, October 10, 2019
The
CGST Rules have been amended vide notification no 49/2019 CGST dated 09.10.2019.
Two of the most important amendments are highlighted herebelow:
Compulsory Payment of tax before filing of GSTR-3B-Inconsistent working of GST portalSaturday, May 11, 2019
Section 146 of the CGST
Act, 2017 provides that the Government may notify the common elecronic portal
for facilitating the registration, payment of taxes, furnishing of
returns and carrying out other purposes under the said Act. In exercise of the
powers u/s 146 common e-portal (gst.gov.in) and eway bill portal have
been notified and are in operation. It is pertinent to mention here that the
said e-portals are for facilitating the law laid down under the GST laws and
such e-portals cannot override the provisions of law.
Proper officer can't invoke the bank guarantee till assessee exhausted statutory remedyWednesday, November 28, 2018
Where Competent Authority had detained goods of assessee under
transport and demanded tax as well as penalty and assessee furnished bank
guarantee for tax and penalty imposed and had goods released, Competent
Authority was restrained from invoking bank guarantee till assessee exhausted
statutory remedy
No Detention of goods on the issue of misclassification or undervaluation under GSTSunday, June 10, 2018
The Kerala High Court in a
very important judgement namely Sameer Mat Industries vs the State of
Kerala has held that Issue
of misclassification and under valuation of goods has to be gone into by
respective Assessing Officers and not by detaining officer.
GSTN has enabled online filing of letter of Undertaking for exportsSaturday, February 24, 2018GSTN enabled online filing of LuT. Instructions for filing LUT online on GST Portal are given below:- 1. Go to User Services and Select the Tab “Furnishing Letter of Undertaking” 2. Select the Financial Year for which you want to furnish the LUT 3. If you have already furnished LUT Offline, for previous period, please attach the same here and continue to file your application 4. If you're filing LUT, please read and select all the three checkboxes for accepting the conditions prescribed in Letter of Undertaking 5. Enter the details of two independent witnesses 6. Primary Authorized signatory or other Authorized signatory can sign the Application Form 7. Once signed and filed, Form cannot be edited. Eway bills officially suspended as notification issued.Saturday, February 3, 2018Government of India has recisended the notification No 74/2017 of CGST which made eway bill compulsory under rule 138 to 138D of CGST Rules. For this purpose notification No 11/2018 CGST has been issued. The implications of this notification is that eway bill is no more compulsory as Rules 138 to 138D have been made inoperative as they were before the issuance of notification No 74/2017 CGST. GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF EXCISE AND CUSTOMS New Delhi: 02.02.2018 Notification No. 11/2018 – Central Tax [F. No. 349/58/2017-GST(Pt.)] Dr. SREEPARVATHY S.L., Under Secy. Compulsory generation of e-way bill deferred-GOI tweetsThursday, February 1, 2018
The official handle of GST
of Government of India has tweeted that the trial phase of generation of eway
bill both for intra-state and inter-state will continue and the date from which
it will be made compulsory will be notified shortly.
No e-way bill required till 01.04.2018 for intra-state supplies of goods in PunjabTuesday, January 30, 2018
Punjab Government has
notified under Rule 138(14)(d) of Punjab GST Rules, 2017 that e-way bill will
not be required to be generated for a period of two months from 1st Feburary,
2018 for intra-state supply of goods provided such goods do not cross the
State boundry during the transit. However, a person may voluntarily generate
e-way bill for intra-state supplies.
GST Rate on old and used motor vehicles reduced-latest notificationsMonday, January 29, 2018
Government has
issued the Notification No. 8/2018 Central Tax Rate read with state Tax
Notification, whereby it has reduced the Rate of GST on old and used vehicle as
follows:
E-way bill under GST - an overviewSunday, January 28, 2018
E-Way Bill is knocking at the door as the date of its
implementation has been notified 01.02.2018. This article focuses certain main
points in the eway bill mechanism.
What is e-way bill: Section 68 of the
CGST Act, 2017 empowers Government to require any person in charge of a
conveyance carrying any consignment of goods of value exceeding the prescribed
amount to carry with him prescribed documents. In pursuance of provisions of
section 68, Rules 138 to 138D have been legislated prescribing Eway Bill in
form GST EWB 01 along with other documents which a person incharge of
conveyance carrying goods of value exceeding Rs. 50000/-, is required to carry
during the movement of goods.
Who is required to generate Eway bill and when it is required: Eway
bill is required to be generated by the following persons:
1. every registered person who causes the movement of goods of
consignment value exceeding Rs. 50000/-
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an unregistered person,
It is pertinent to mention here that Eway Bill has to be generated
before the movement of goods start and is required only by a registered person,
and not by an unregistered person, however, unregistered person may voluntarily
generate eway bill. Eway bill may be generated voluntarily even where the
consignment value does not exceed Rs. 50000/-.
2. where goods are sent by a principal located in one State
to a job worker located in any other State, the e-way bill shall be generated
by the principal irrespective of the value of the consignment.It is to be noted
that limit of Rs. 50000/- in case of intra-state movement of goods for job work
purposes will continue to apply.
3. where handicraft goods are transported from one State to
another by a person who has been exempted from the requirement of obtaining
registration under clauses (i) and (ii) of section 24, the e-way bill shall be
generated by the said person irrespective of the value of the consignment.
Consignment value of Rs. 50000/- as stated above has to be
determined in accordance with Section 15 of CGST Act, which deals with
valuation of supply and the consignment value of Rs. 50000/- shall be counted
by including not only the value of goods but also the GST and Cess if any
charged on it.
Generation of E-way bill: Eway bill has two
parts,Part-A and Part-B. Part-A includes details of invoice/challan/credit note
and the details of receipient and transporter, whereas Part-B only has
information with regard to vehicle no. when you
have prepared invoice relating to your business transaction, but don’t have the
transportation details. You can enter invoice details in Part-A of eway bill
and keep it ready for transportation, once the transportation is ready.
It is worth mentioning here that mere filing
Part-A is not valid for movement of goods on road, except for the movement of
goods from the place of the supplier or the receipient as the case may be to
the place of transporter where the distance between the two is less than 10
KMs.
Who is to file Part-A: Part-A has to be
filed mandatorily by the registered person who causes the movement of goods
whether as consignor or as consignee or as recipient, whether the goods are
transported in his own conveyance or by railways or by air or by vessel.
Part-A can also be filed by the transporter and it is mandatory
for the transporter to file Part-A, if the supplier or receipient fails to do
so and the consignment value exceed Rs. 50000/-
For example if A transporter is carrying 5 different
consignments of five different suppliers and receipients in one vehicle the
value of each consignment is say Rs. 20000/-, in such case the total value of
consignments carried in the vehicle comes to Rs. 100000/- In such case although
it was not mandatory for supplier of receipient of each consignment to
generate eway bill but in such case it is mandatory for the transporter to
generate eway bill by filing both Part-A and Part-B.
Part-A can also be filed by an unregistered person voluntarily,
however, it has been stated in Explanation 2 of Rule 138(3) that if goods are
supplied by an unregistered person to a registered recipient and recipient is
known at the time of commencement of movement of goods, then the movement shall
be said to be caused by such registered receipient.
In other words meaning thereby if supply is by an unregistered
person to a registered person, then it is mandatory for the registered
receipient to generate eway bill, ofcource if the consignment value exceed Rs.
50000/-.
Where the goods to be transported are supplied through an
e-commerce operator (for example: amazon, flipkart etc), Part-A may also be
furnished by such e-commerce operator.
Who is to file Part-B: As stated above
also, Part B only contains information with regard to vehicle number.
In case movement is caused by own conveyance or a hired
conveyance, it is the person causing the movement has to file Part-B
In case of movement by rail or by air or vessel Part
-B has to be mandatorily filed by the registered person and along with it the
serial number and date of Railway Receipt or the Air consignment note or Bill
of Lading are also required to mentioned in the Part-A.
If the goods are handed over to a transporter for
transportation by Road Part-B will be filed by the transporter.
The unique feature of Eway bill is that Part B of eway bill can be
updated in the following circumstances:
1. where the goods are transferred from one
conveyance to another, in such case Part-B will be mandatorily updated with new
vehicle number before such transfer and further movement of goods.
For
example: If the vehicle breaks down when the goods are
being carried with EWB, then the transporter can cause to repair the vehicle
and continue the journey. If he is going to change the vehicle, then he has to
enter the new vehicle details for that EWB on the web-site using ‘Update
vehicle number’ option and continue the journey with new vehicle.
Part-B can be updated as many times as it Is required but
should be done within validity period. It has also been further provided in 2nd proviso
to Rule 138(9) that the unique number generated by filing Part-A shall be valid
for 72 hours for updation of Part-B.
2. There may be instances that transporter assign
the consignment to other transporter after booking from the supplier or recipient.
In such situation Rule 138(5A) provides that the transporter may assign the
e-way bill number to another registered or enrolled transporter for updating
the information in Part-B. It is worth noting here that whenever Part-A is
filed by the registered person and he has to mention the transporter’s GSTIN or
enrollment id in Part-A, if the goods are handed over to transporter.
However,
once the details of the conveyance are updated by the transporter in part-B
then supplier or recipient who had furnished Part-A will not be allowed to
assign the eway bill number to another transporter.
Validity of E-way Bill: E-way Bill’s validity
has been prescribed under Rule 138 in terms of distance involved in the
movement of goods. It as follows:
It should be noted here that the period of validity shall be
counted from the time at which the e-way bill has been generated and each day
shall be counted as twenty four hours.
Rule 138(10) further provides that where, under circumstances of
an exceptional nature, the goods cannot be transported within the validity
period of the e-way bill, the transporter may generate another e-way bill after
updating the details in Part B of FORM GST EWB-01.
Cancellation of E-way Bill: Rule 138(9) provides
for cancellation of eway bill within 24 hours of generation of the e-way bill,
which can be done in the following circumstances:
-Where goods are not transported at all or
-are not transported as per the details furnished in the e-way
bill.
However, an e-way bill cannot be cancelled if it has been
verified in transit in accordance with the provisions of rule 138B.
Consolidated E-way bill: Where multiple
consignments are 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.
Acceptence and rejection of e-way bills: The
eway bills generated shall be made available to a registered supplier if
generated by recipient or transporter and vice versa to the registered
recipient if generated by supplier or transporter. The same has to be accepted
or rejected by the supplier or recipient as the case may be, however if nothing
is done within seventy two hours then it shall be deemed that he has accepted
the said details.
When no e-way bill is required:Rule 138(14) provides with
a non-abstante clause the circumstances where no eway bill is required, these
are as follows:
(a) where the goods being transported are specified in Annexure;
(b) where the goods are being transported by a non-motorised
conveyance;
(c) where the 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;
(d) in respect of movement of goods within such areas as are
notified under clause (d) of sub-rule (14) of rule 138 of the Goods and
Services Tax Rules of the concerned State;
(e) where the goods, other than de-oiled cake, being transported are
specified in the Schedule appended to notification No. 2/2017- Central tax
(Rate) dated the 28th June, as amended from time to time;(the schedule is
for tax free or nil rated goods)
(f) where the goods being transported are alcoholic liquor for
human consumption, petroleum crude, high speed diesel, motor spirit (commonly
known as petrol), natural gas or aviation turbine fuel; and
(g) where the goods being transported are treated as no supply
under Schedule III of the Act.
Documents and devices to be carried with a conveyance: Rule 138A
prescribes following documents which a person incharge of a conveyance must
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.(there is
no such notification till the date when this article is written).
(c) Rule 138A(2) also provides facility of generation of Invoice
reference number by uploading on the e-way bill portal the tax invoice in form
GST INV-1, which will be valid for thirty days from the date of uploading and
in which case no physical invoice is required to be carried along with the
conveyance.
Verification of documents and conveyance: Rule
138B and Rule 138C empowers the proper officer (who is duly authorized to do so
either by Commissioner or an officer empowered in this regard)to intercept any
conveyance to verify the e-way bill or number thereof.
Physical verification of conveyance can be done only by the proper
officer who is duly athorised to do so, however physical verification of
conveyance can also be done by any officer other than proper officer after
obtaining necessary approval, if there is receipt of specific information on
evasion of tax.
Rule 138C also mandates the proper officer to record online
summary inspection report of every inspection of goods in transit in Part-A of
form GST EWB 03 and a final report within three days in Part-B of the said
form.
Once a physical verification of a conveyance is done in a state or
in any other State then further physical verification can be done unless a
specific information with regard to evasion of tax is made available
subsequently.
Certain important FAQs
Question: How to enter multiple modes of
transportation, i.e., road, rail, ship, air for the same e-way bill?
Answer: One e-way bill can go
through multiple modes of transportation before reaching the destination. As
per the mode of transportation, the EWB can be updated with new mode of
transportation by using ‘Update Vehicle Number’.
Let us assume the goods are moving from Cochin to Chandigarh
through road, ship, air and road again. First, the taxpayer generates the EWB
by entering first stage of movement (by road) from his place to ship yard and
enters the vehicle number. Next, he will submit the goods to ship yard and
update the mode of transportation as Ship and transport document number on the
e-way bill system. Next, after reaching Mumbai, the taxpayer or concerned
transporter updates movement as road from ship to airport with vehicle number.
Next the taxpayer or transporter updates, using ‘update vehicle number’ option,
the Airway Bill number. Again after reaching Delhi, he updates movement through
road with vehicle number. This way, the e-way bill will be updated with
multiple mode of transportation.
Question: How to handle the goods which moves through
multiple transshipment places?
Answer: Some of the consignments move
from one place to another place till they reach their destinations. Under this
circumstance, each time the consignment moves from one place to another, the
transporter needs to enter the vehicle details using ‘Update Vehicle Number’
option, when he starts moving the goods from that place or the transporter can
also generate ‘Consolidated EWB’ with the EWB of that consignment with other
EWBs and move to the next place. This has to be done till the consignment
reaches destination. But it should be within the validity period of EWB.
Question: How to
generate e-way bill for multiple invoices belonging to same consignor and
consignee?
Answer: If multiple invoices are
issued by the supplier to recipient, that is, for movement of goods of more
than one invoice of same consignor and consignee, multiple EWBs have to be
generated. That is, for each invoice, one EWB has to be generated, irrespective
of same or different consignors or consignees are involved. Multiple invoices
cannot be clubbed to generate one EWB. However after generating all these EWBs,
one Consolidated EWB can be prepared for transportation purpose, if they are
going in one vehicle.
Question: How to enter invoice having different states for
“Bill to” and “Ship to” places and what will be the tax rates?
Answer: If the addresses involved in 'Bill to' and 'Ship to' in a
invoice/bill belongs to one legal name/taxpayer as per GSTIN within the state,
then one e-way bill has to be generated. That is, if the 'Bill to' is principal
place of business and 'Ship to' is additional place of business of the GSTIN or
vice versa in a invoice/bill, then one e-way bill is sufficient for the
movement of goods.
If the addresses involved in 'Bill to' and 'Ship to' in a
invoice/bill belongs to different legal names/taxpayers, then two e-way bills
have to be generated. One e-way bill for first invoice, second e-way bill is
from 'Bill to' party to 'Ship to' party based on the invoice/bill of the 'Bill
to' party. This is required to complete the cycle of transactions and taxes
will change for inter-state transactions.
For example, A has issued invoice to B as 'Bill to'
with C as 'Ship to'. Legally, both B and C are different taxpayers. Now, A will
generate one e-way bill and B will issue invoice and generate one more e-way
bill. As goods are moving from A to C directly, the transporter will produce
both the invoices and e-way bills to show the shortcut movement of goods.
Question: How to generate e-way bill, if the goods of one
invoice is being moved in multiple vehicles simultaneously?
Answer: Where the goods are being transported in a semi knocked down
or completely knocked down condition the EWB shall be generated for each of
such vehicles based on the delivery challans issued for that portion of the
consignment and;
(a) the supplier shall issue the complete invoice before dispatch
of the first consignment;
(b) the supplier shall issue a delivery challan for each of the
subsequent consignments, giving reference of the invoice;
(c) each consignment shall be accompanied by copies of the
corresponding delivery challan along with a duly certified copy of the invoice;
and
(d) the original copy of the invoice shall be sent along with the
last consignment
Please note that multiple EWBs have to generate
under this circumstance. That is, the EWB has to be generated for each
consignment based on the delivery challan details along with the corresponding
vehicle number.
“semi knocked-down”
is used to describe a product that is exported in a set
of parts that have been
partly put together, and which are then all put together for sale to customers:
"completely knocked-down" is
used to describe a product that s sold or transported in a
set of parts, which must be put
together before the product can be used by
the customer:
For example: Motorcycles can be transported in
completely knocked-down kits, hich reduced transport costs because less space was needed to transport them.
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