Wednesday 31 January 2018

Case law on e-way bill provisions

2018-VIL-45-KER

M/s AGE INDUSTRIES (P) LTD Vs THE ASST. STATE TAX OFFICER

Kerala State GST Act – Section 129, Rule 138(2) – power to detain goods – conveyance of goods for quality appraisal on job work basis - detention since the goods were transported on delivery chalan instead of uploading declaration in accordance with Rule 138(2) of the State SGST Rules and since goods intended to be supplied to an unregistered dealer – HELD - the power of detention contemplated under Section 129 of the SGST Act can be exercised only in respect of goods which are liable to be confiscated under Section 130 of the SGST Act - there is no taxable supply when goods are transported on delivery chalans so long as the authenticity of the delivery chalan is not doubted and therefore, such goods cannot be detained merely for infraction of Rule 138(2) of the State SGST Rules -  the first reason on which the goods are detained, that the goods were not accompanied by the document provided for under Rule 138(2) State GST Rules, is unsustainable - The question whether the person to whom such goods are supplied has registration is irrelevant in the context of the statutes - The defect, if any, of the delivery chalan being not a reason mentioned in the detention notice, the same cannot be permitted to be urged to sustain the detention, as the same is not the reason for the detention. It is all the more so, as this Court is not examining the question as to whether the delivery chalan in question is one issued in accordance with the State SGST Rules - the impugned detention is held to be illegal and the respondent is directed to release the consignment to the petitioner forthwith - the writ petition is allowed

Thursday 25 January 2018

Note on E-way Bill under GST Regime

Note on E-way bill under GST Regime
E-way bill is a pre-intimation on the common portal of the department regarding the movement of goods of consignment where the amount exceeds fifty thousand Rupees in relation to supply or for the reasons other than supply, or due to the inward supply from an unregistered person. Here it is pertinent to point out that no e-way bill is required to be generated where the goods being transported are specified in Annexure [See Rule 138 (14)], or where the goods are being transported by a non-motorised conveyance, or 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, and 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
In terms of section 68 of Goods and Services Act and Rule 138 of The Goods and Services Tax Acts mandates that the Govt. may require the person incharge of the conveyance carrying any consignment of goods, exceeding 50,000/- is under an obligation to generate e-way bill.
Now the question arises, who can generate the e-way bill.
Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees in relation to supply; or reasons other than supply; or inward supply from unregistered person shall generate e-way bill. It means, the consignor or consignee, as a registered person or a transporter of the goods can generate the e-way bill. The unregistered transporter can enroll on the common portal and generate the e-way bill for movement of goods for his clients. Any person can also enroll and generate the e-way bill for movement of goods for his/her own use.

What is the validity period for e-way bill?
Validity of the e-way bill or consolidated e-way bill depends upon the distance the goods have to be transported. The validity is one day upto 100 km and for every 100 km or part thereafter it is one additional day.

How validity is calculated?
The validity period of the EWB is calculated based on the ‘approx. distance’ entered while generating the EWB. For every 100kms one day is a validity period for EWB as per rule and for part of 100 KM one more day is added. For ex. If approx. distance is 410KMs then validity period is 4+1 days.

What has to be done if validity of the e-way bill expires?
If validity of the e-way bill expires, the goods are not supposed to be moved. However, under circumstance of ‘exceptional nature’, the generator of the e-way bill can generate another e-way bill, by entering the e-way bill number and part-B. Now, the system generates the new e-way bill with part-A information of previous e-way bill and new Part-B information.

Constitution of E-way bill?
E-way bill is divided into two parts i.e. part-A and part-B
Part-A is a temporary number generated after entering all the details in PART-A. This can be shared or used by transporter or yourself later to enter the PART-B and generate the E-way Bill. This will be useful, when you have prepared invoice relating to your business transaction, but don’t have the transportation details. You can enter invoice details and keep it ready for transportation, once the transportation is ready.
If one will not enter the vehicle number for transportation by road or transport document number in other cases, the system will show you the PART-A slip. It indicates that still you have not completed the e-way bill generation process. Once you enter the part-B details for this unique number, e-way bill be generated.

How to generate e-way bill?
Part-A is entry made by user to temporarily store the document details on the e-way bill system. Once the goods are ready for movement from the business premises, the user can enter the Part-B or vehicle details and generate the e-way bill for movement of goods. Hence, Part-B details convert the Part-A into e-way bill.

Documents required to be carried alongwith the goods?
The person in charge of a conveyance shall carry the tax invoice or bill of supply or delivery challan, bill of entry as the case may be; and a copy of the e-way bill or the e-way bill number generated from the common portal.

How one can enter part-A details and generate e-way bill later by entering part-B?
The taxpayer can enter Part-A details and generate the Part-A slip. Sometimes, the taxpayer wants to move the goods himself but wants to update the Part-B later as vehicle number is not available at that point of time. E-way bill expects the user to enter transporter ID or vehicle number. If he wants to move the goods himself, he can enter his GSTIN as transporter Id and generate Part-A. This indicates to the system that he is a transporter and is going to enter Part-B later.

E-way bill in case of multiple invoices belonging to same consignor and consignee?
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. How ever after generating all these EWBs, one Consolidated EWB can be prepared for transportation purpose, if they are going in one vehicle

If consignee refuses to take goods or rejects the goods, then how to deal with that situation?
There is a chance that consignee or recipient may reject to take the delivery of consignment due to various reasons. Under such circumstance, the transporter can get one more e-way bill generated with the help of supplier or recipient by indicating supply as ‘Sales Return’ and with relevant document details and return the goods to supplier as per his agreement with him.

How to enter invoice having different states for “Bill to” and “Ship to” places and what will be the tax rates?
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.

How to generate e-way bill when one invoice of bulk quantity is being moved in multiple vehicles?
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
e) 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.

How to deal with the situation if the vehicle breaks down?
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.

If in any case, e-way bill is changed then how to deal with this situation?
The e-way bill for transportation of goods always should have the vehicle number that is physically carrying the goods. There may be requirement to change the vehicle number after generating the e-way bill or after commencement of movement of goods due to transhipment or due to breakdown of vehicle. In such cases, the transporter or generator of the e-way bill can update the changed vehicle number.

One can transport the goods with e-way bill without vehicle details in it?
No. One needs to transport the goods with a e-way bill specifying the vehicle number, which is a carrying the goods. However, where the goods are transported for a distance of less than 10 KM within the State from the place of business of consignor to the place of transporter for further transportation, then the vehicle number is a not mandatory.

If both consignor and consignee is not having GSTIN?
If the consigner or consignee is unregistered taxpayer and not having GSTIN, then user has to enter ‘URP’ [Unregistered Person] in corresponding GSTIN column.

Whether part-B or vehicle number can be updated for an e-way bill?
Yes, part-B can be updated (vehicle details) as many times has he wants for movement of goods to its destination. Subject to the condition, the updating should be done within the validity period.

Is it possible to delete or cancel the e-way bill?
The e-way bill once generated cannot be deleted. However, it can be cancelled by the generator within 24 hours of generation. If it has been verified by any proper officer, then it cannot be cancelled. Further, e-way bill can be cancelled if either goods are not transported or are not transported as per the details furnished in the e-way bill.

Who can reject e-way bill?
The person who causes transport of goods shall generate the e-way bill specifying the details of other person as a recipient of goods. There is a provision in the common portal for the other party to see the e-way bill generated against his/her GSTIN. As the other party, one can communicate the acceptance or rejection of such consignment specified in the e-way bill. If the acceptance or rejection is not communicated within 72 hours from the time of generation of e-way Bill, it is deemed that he has accepted the details.

Modes of e-way bill generation?
The e-way bill can be generated by the registered person in any of the following methods;-
·         Using Web based system
·         Using SMS based facility
·         Using Android App
·         Bulk generation facility
·         Using Site-to-Site integration
·         Using GSP ( Goods and Services Tax Suvidha Provider)

SMS facility to generate e-way bill?
The taxpayer has to register the mobile numbers through which he wants to generate the e-way bill on the e-way bill system. Please see the user manual for SMS based e-way bill generation, on the portal

Android App to generate e-way bill?
The taxpayer has to register the EMEI numbers of the mobiles through which he wants to generate the e-way bill on the e-way bill system. Please see the user manual for Mobile App based e-way bill generation, on the portal.

Procedure to download mobile App?

The mobile app is available only for the taxpayers and enrolled transporters. The main user has to login and select the ‘for mobile app’ under registration menu. The system requests to select the user/sub-user and enter the IMEI number of the user. Once it is entered, the concerned user gets the link in his registered mobile to download the app through SMS. Now, the user has to download the app by clicking that link and enable to it get it installed on the mobile.

Penalties for violation of E-way bills?
Regarding penalties, the same is governed by Section 129 of the GST Act, as if, there is a bill GR then penalty leviable for any violation is equal to applicable tax and penalty to 100% of the tax payable on such goods and in case owner of the goods does not come forward, means thereby the E-way bill is not generated then penalty leviable is equal to 50% of the value of the goods reduced by the tax amount paid thereon alongwith applicable tax.

Conclusion:
In fact E-way bill proves to be very useful for the honest tax payers as it is a pre-intimation to the department so there is no harassment to the honest dealer if the tax payer will generate the E-way bill for movement of goods and as per my opinion it proves to be very efficient system in comparison to the system prevalent under the Punjab Vat Act, 2005 there is no doubt whenever any new concept came into existence then one has to face hurdles but if we adopt the honest policy of tax paying then the honest tax payer will be highly beneficiary for the same. 

Wednesday 24 January 2018

Latest update on Goods & Services Act, 2017 and E-Way Bill


Get the latest update on Goods & Services Act, 2017 and E-Way Bill


Judgment delivered by the Hon'ble Supreme Court of India in the case of "Commissioner of Trade and Taxes Delhi V/s Arise India Limited" decided on 10-01-2018, in which, the judgment of Delhi High Court was upheld, which is in favor of dealers and the appeal of the revenue was dismissed.

This is very important judgment on the issue of Input Tax Credit, important judgment delivered by Hon'ble Supreme Court on the issue of input tax credit that burden of selling dealer cannot be fastened on purchasing dealer. Beside this, Article 141 of the Indian Constitution clearly lays down that it has binding effect beside this judgment plays vital role in GST Act on the issue of purchases made by purchaser who has paid tax to seller and later on, his claim has denied on flimsy grounds that the purchases are bogus.