E-way bill system in GST | Road Permit Requirement in GST

The e-way bill system in GST is likely to be implemented from October 2017.

Electronic WayBill under GST will be implemented soon as the consolidatedall-India platform is ready. After the successful rollout of GST on 1st July,2017; the toll booths have become unnecessary/ useless. So most of thestates totaling to 22 in number have abolished their border check posts. This has resulted in faster and smoothtransportation of goods across the state borders.

The centralized software platform for e-way bill system is being developed by the National Informatics Centre (NIC) along with GST-Network (GSTN). The same company which had developed the IT backbone for the GST. The software/infrastructure needs to have features like smooth generation of registration and its verification through hand-held devices fortax officials for provisions of e way bills to be successful.

The e-way bill rules are likely to be discussed and finalized in the next meeting i.e. on 5 August, 2017 of the GST Council. Once the rules will be in place, Centralized software platform for ofe-way bill system will be developed bythe NIC along with GSTN. E way bill system dint rollout along with GST on 1st July,2017 as the infrastructure for the same was not ready.

The provision of E way bills under GST requires pre-registration online forany goods more than Rs 50,000 in value before they are moved out.The Central Government has also decided to relax the timeline provisionfor goods that will travel more than 1,000 kms.Earlier the E way bill for more than 1000 kms was going to remain valid only for 15 days which will is expected to be 20 days.

As per draft e-way bill rules which were published in April 2017, the important documents which are required to be carried by person in-charge of conveyance (truck operators) either physically or electronically mapped to a Radio Frequency Identification Device (RFID) which will be embedded on to the conveyance are

• Invoice
• Names of consignors
• Name of consignee
• Point of origin
• Destination of goods
• Route of Transport
• Value of consignment
• Bill of supply/delivery challan

E way bills should be generated irrespective ofwhether supply/sale/ branch transfers/barter/exchange of goods is for consideration or not. Whether the consideration received isin the course of business, ornot.

What is an e way bill

• E way bill can be understood as an electronic permit (electronic way bill) for movement of goods valuing more than Rs. 50,000 that will be required under GST regime.

• This way bill needs to be presented for moving consignment of goods within a state (intra state) or between different states(inter state).

• This can begenerated or cancelled on the GSTN (common portal) by uploading details of consignmentin a prescribed format on the GSTN official website.It can be done through simple SMS as well.
• Once GSTN generates the e way bill, Unique e-way bill number (EBN) will be provided tothe supplier, recipient and transporter. This will serve as an electronic permit for within the state and across state borders as mentioned above.

Who needs to generate an e-way bill

• An e way bill can be generated by both registered and unregistered persons.

• It can be generated by transporter, person registered as consignor, person registered as consignee as well as by an unregistered person.

• An e way bill can also be generated if value of goods is less than Rs 50,000.

• Generation of E way bill is mandatory for movement of goods valuing more than Rs 50,000.

• If a supply is madeby an unregistered person to a registered person, then receiver (the registered person) will have to fulfill all the requirements as if hes the supplier.

• A registered person may upload a tax invoice in Form GST INV-1 on the GSTN common portal. Information from tax invoice will auto populate in Part A Form GST INS-1.

• An e way bill needs to be generated inForm GST INS-1 before the movement of goods by –
  • Every registered personunder GST by filling Part A.
  • A registered person under GST is consignee/consignor or recipient of goodsby filling Part B.It is irrelevant whether Mode of transport used is owned or hired.
  • A registeredperson under GST is consignee or consignor &goods are transferred to the transporter of goodsby filling Part A & Part B.
  • If in case consignor doesn’t complete the above Form GST INS-1 then it is the responsibility of transporter of goods before the movement of goods.

When an e way bill needs to be generated on GSTN Portal

• An e-way bill needs to be generated before the movement of goods
  • In relation to a supply
  • For reasons other than a supply ( e.g. goods return)
  • Due to inward supply from an unregistered person

What is the validity period of e way bills generated

In the table below, we have listed regarding the validity of e-way bills which ranges from 1 day to 20 days that will be generated by GSTN. Validity would depend upon the distance over which the goods are to be transported.

E-way bill system in GST | Road Permit Requirement in GST

The GST Commissioner has the power to extend the validity period of e-way bill for certain categories of goods if he thinks its necessary.

When & who can do the physical verification of the vehicle

• As per draft e way bill rules, if there is any specific input/information ofevasion of tax, then physical verification of conveyance can be done.
• It can be done either by tax commissioner himself or by any officer on direction by tax commissioner on his behalf.
• But in that case, the officer needs to submit his summary report of physical verification/ inspection within 24 hours of inspection and final report within 3 days of inspection

Compiled by CA Ankita Khetan

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