Movement of Goods and Inspection E -way Bill and its Reco Analysis of Issues and Case Laws - Hiregange Academy GST Certificate Course-Webinar Series
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Movement of Goods and Inspection
E –way Bill and its Reco
Analysis of Issues and Case Laws
Hiregange Academy
GST Certificate Course-Webinar Series
Date – 26-04-2020
CA. Annapurna Srikanth, F.C.A, D.I.S.A, C.S
Approach to the Session Conceptual Practical Aspects Demo through Screen shots Analysis
Session - Synopsis
Conceptual Demo through Screen shots
• Important terminologies • Registration/Enrolment
• Important concepts • Dashboard and Menu
• Provisions overview Options
o Act • E-way Bill generation
o Rules
o Implications of Non Analysis
compliances
• Acceptable & Fatal Errors
Practical Aspects • Myths
• Records • Case studies
• Forms Summary • Issues
• Procedurals • Judgements - Orders and
• Reconciliation Rulings
Conceptual
Important terminologies Movement V Supply Transportation V Delivery Transfer V Assignment Ship to V Address of delivery Consignor V Supplier Consignee V Recipient Inter-state supply - Intra-state movement Intra-state supply - Inter-state movement
Movement of goods Commencement of movement? Completion of movement? Modes of Movement – By Road – By Rail – By Air – By Vessel – Or even multi-modal Movement could be through – Own conveyance – Hired one – Public conveyance
Circumstances necessitating movement
Movement owing to outward – Movement owing to other than
Supply
Supply 1. Sales return
1. Supplier to recipient 2. Job Work
2. Supplier to any other 3. Repair
person on behalf of 4. Exhibitions
recipient 5. Demo
6. Line Sales
3. Supply in Parts 7. Sent on Approval – Sale or
(CKD/SKD)/Batches/Lots return
8. Sample
Movement owing to inward 9. Tools, Jigs, Dies
supply from unregistered 10. Disposal
person 11. Gift
1. Procurements from 12. Auction
13. Stock transfer to unregistered
unregistered persons branch in the state
2. Import of goods 14. Own Use
What is an e-Way Bill?
1. A document required to be carried by a person in charge of the
conveyance (person transporting goods) carrying any consignment of
goods of value exceeding Rs 50,000.
2. The E-Way Bill contains details of the sender, receiver and the transporter
(if seller is not the transporter). It excludes the value of exempt supplies of
goods where both taxable and exempt supplies are billed together but
Includes IGST/CGST & SGST
3. e-Way Bill has to be generated movement of goods starting from 1st April
2018 or even earlier period if states have implemented.
8
Who can generate an e- way Bill • Supplier/Consignor • Recipient/Consignee • Importer • Principal • Registered Job Worker • Transporter • Ecommerce Operator • Courier Agency • Unregistered persons/Citizens Exclusion : Public transporter (In such case consignor/consignee must generate)
WHO SHOULD RAISE RULE 138(1)
• Every registered person who causes movement of goods of consignment value exceeding ‘Fifty Thousand Rupees’
In relation to Supply
For reasons other than Supply
Inward Supply from Un-Registered Person
shall, furnish information relating to the said goods in Part A of FORM GST EWB-01, electronically. The way bill is to
be generated before the commencement of movement
10Rule 138 (1) : Consignment Value
Includes Excludes
11Rule 138 (1) : Consignment Value < 50k – Inter State Transfer
Definition of Handicraft goods vide 32/2017-CT
The products mentioned below when made by craftsman predominantly by hand even though some
machinery may also be used in the process.
1. Leather articles 12. Leather footwear
2. Carved wood products 13. Carved stone products
3. Wood turning and lacquer ware 14. Stones inlay work
4. Bamboo products 15. Pottery and clay products
5. Grass, leaf and reed and fibre products 16. Metal statues & kitchen ware
6. Paper made articles 17. Musical instruments
7. Textile , Textiles hand printing & embroidery 18. Horn and bone products
8. Zari thread 19. Conch shell crafts
9. Carpet, rugs and durries 20. Bamboo, cane/Rattan furniture
10. Theatre costumes 21. Dolls and toys
11. Coir products 22. Folk paintings, Mahbubani etc.
13Rule 138(14): E-way bill is NOT required
a) Specified Goods in Annexure
b) Transport by a non-motorised conveyance
c) Transport of goods from customs 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 rule
138(14)(d) of the SGST or UTGST Rules in that particular State or Union territory
e) Where the goods being transported, are specified in the Schedule appended to
Notn. 2/2017 (Exempted) other than de-oiled cake
f) Transport of alcoholic liquor for human consumption, petroleum crude, high
speed diesel, motor spirit, natural gas or aviation turbine fuel
g) Transport of schedule III items
14Rule 138(14): Cases for which E-way bill is not required
h) Where the goods are being transported under customs supervision,
bond or seal
i) Where the goods being transported are transit cargo from or to Nepal
or Bhutan
j) Specified Suppliers (CSD 7/2107 + Department of Atomic Energy etc)
k) Movement caused by Defence
l) Where the consignor of goods is the CG, SG or a local authority for
transport of goods by rail
m) Transport of empty cargo containers
n) To Weighment bridge for weighting upto 20kms
o) Empty Cylinders for packing/filling of LPG
15Annexure :: Cases for which E-way bill is not required
LPG
Kerosene
Coral
oil
Used
personal and
household
effects
Goods Postal
baggage
Pearls,
stones and
Jewellery
precious
metals
Currency
16Provisions of the Law
Sec 68: Inspection of goods in movement
Section 68 (1) : Carry e-Way Bill
– The Government may require the person in charge of a conveyance carrying any
consignment of goods of value exceeding such amount as may be specified to carry with him
such documents and such devices as may be prescribed.
Section 68 (2) : Validation of e-Way Bill
– The details of documents required to be carried under sub-section (1) shall be validated in
such manner as may be prescribed.
Section 68(3) : Interception of Conveyance, Production of Documents/Devices for
verification and Allow Inspection
– Where any conveyance referred to in sub-section (1) is intercepted by the proper officer at
any place, he may require the person in charge of the said conveyance to produce the
documents prescribed under the said sub-section and devices for verification, and the said
person shall be liable to produce the documents and devices and also allow the inspection of
goods.E-way Bill Journey
• Certain states Voluntarily implemented E-way bill for intra/inter state movement even
before nation wide roll out
• Announcement of 1st Feb 2018 for roll out of e-way bill for inter state movement (Could
not be implemented and hence rescinded)
• Announcement of 1st April 2018 for roll out of e-way bill for nation wide inter state
movement and intra statement movement in Karnataka & other states latest by 1st June
2018.
• Phase-wise implementation for intra state movement in various states
– 15th April 2018 - Andhra Pradesh, Gujarat, Kerala, Telangana and Uttar Pradesh.
– 20th April 2018 - Bihar, Jharkhand, Haryana, Himachal Pradesh, Tripura and Uttarakhand
– 25th April 2018 - Arunachal Pradesh, Madhya Pradesh, Meghalaya, Sikkim and Puducherry
– 16th May 2018 – Assam
– 20th May 2018 – Rajasthan
– 25th May 2018 - Maharashtra, Manipur and Union Territories (without legislature) -Andaman &
Nicobar Islands Chandigarh, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep
– 1st June 2018 - Chhattisgarh, Goa, Jammu & Kashmir, Mizoram, Odisha & Punjab
– 2nd June 2018 – Tamilnadu
– 3rd June 2018 – West BengalSnapshot of Material on E-way Bill Sl.No. Document Description No. of documents 1. Notifications 22 2. Circulars 7 3. Press Releases 14 4. FAQs 5 5. E-flyers 2
Summary of the content
Sl.N Document No. of Summary
o. Description documen
ts
1. Notifications 22 Rules were substituted thrice
Certain insertions in the rules
Notified the effective dates
Validity extension
2. Circulars 7 Procedure for interception by officers
Minor penalty for minor breaches
Clarifications on certain aspects
3. Press Releases 14 Roll out updates
Bill to Ship to clarifications
4. FAQs 5 Compilation of Frequently Asked questions
5. E-flyers 2 Snapshot of the provisionsE-Way Rules
eWay Bill
138 138A 138B 138C 138D 138E
Verification of Inspection & Upload info of Blocking/
Documents to
EWB Generation Documents & Verification of Vehicle Unblocking of E
Carry
Conveyance Goods Detention way Bill
Before Person in charge Summary >30 min Report
And Conveyance
Movement of vehicle Report EWB -03 in EWB - 04Rule Summary
Rule Rule Description and Content
138 Information to be furnished prior to commencement of movement of goods and generation of e-way bill
138(1) Specified registered persons must fill Part A of the E-way Bill and generate unique number
First proviso Transporter may fill Part A of the E-way Bill and generate unique number subject to Authorization
Second proviso E-commerce operator/courier agency may fill Part A of the E-way Bill and generate unique number subject to
Authorization
Third proviso E-way bill to be compulsorily generated (irrespective of the consignment value) in case of goods sent by
principal to job worker being inter-state movement either by principal or by registered job worker
Fourth proviso E-way bill to be compulsorily generated (irrespective of the consignment value) in case of handicraft goods
being inter-state movement by person claiming exemption from registration.
Explanation 1 Meaning of handicraft goods to be inferred from Notification No. 56/2018 Central Tax dtd 23rd October 2018
Explanation 2 Consignment Value as per Sec 15 (declared in Tax Invoice/BOS/DC) plus Tax (CGST/SGST/IGST/UTGST/Cess) and
excludes value of exempt supply
138(2) E-way bill to be compulsorily generated by filling in Part B when goods are transported by road irrespective of
whether through own conveyance or a hired one or a public conveyance.
138(2A) Where goods are transported through railways, air or vessel, Part B to be filled either before or after
commencement of movementRule Summary
Rule Rule Description and Content
Proviso Railways not to deliver the goods unless e-way bill is produced at the time of delivery
138(3) Transporter details to be mentioned in Part A to enable the transporter to fill Part B
First Proviso E-way bill generation is optional in case of consignment value < Rs.50,000/-
Second Proviso E-way bill may be generated even in case of unregistered persons (URP) causing movement. Either such
URP or transporter may generate.
Third Proviso Part B not required in case of distance up to 50kms (intra state movement) from consignor’s place to
transporter’s place
Explanation 1 In case of unregistered supplier movement deemed to be caused by the registered recipient.
Explanation 2 If Part B not filled then it is not a valid e-way bill for movement except for 50 kms distance within the state
I. From consignor’s place to transporter’s place
II. From transporter’s place to consignee’s place
138(4) On generation of e-way bill, Unique E-way Bill No. made available to supplier, recipient and transporter
138(5) When goods transferred from one conveyance to another person who filled the Part A must update Part B
Proviso Updation of Part B not required in case of distance up to 50kms (intra state movement) from
transporter’s place to consignee’s place.Rule Summary
Rule Rule Description and Content
138(5A) Assignment of E-way bill No. to another registered or enrolled transporter by updating Part B
Proviso After assignment, re-assignment to another transporter is not possible
138(6) In case of multiple consignments in one conveyance, transporter can generate consolidated e-way bill
indicating the serial nos. of e-way bills
138(7) If consignor/consignee not generated e-way bill, but aggregate consignment value of all consignments
carried in the conveyance > Rs.50,000/-, in case of road transport pursuant to inter-state supply, shall
generate e-way and may generate consolidated e-way bill. (Sub Rule 7 is not yet notified)
138(8) Details in Part A of E-way is made available to the Supplier which could be imported to GSTR 1
Proviso In case of unregistered supplier or recipient it shall be made available electronically, either through SMS or
email
138(9) In case of non-transport of goods but e-way bill generated the same may be cancelled within 24 hours of
generation
First Proviso No cancellation if verified in transit as per Rule 138B
Second Proviso Validity of Part A and unique number generated therewith is for 15 days from the date of generationRule Summary
Rule Rule Description and Content
138(10) Validity of e-way bill generated for movement within the country, based on the distance. - Categories
I. Over dimensional cargo
II. Multi-modal shipment – one leg involves transport by ship
III. Other than the above two
First Proviso Extension of validity period of e-way bill for certain category of goods by Commissioner
Second Proviso Extension of validity period of e-way bill in case of transhipment or such other exceptional circumstances.
Third Proviso Extension of validity within 8 hours of its expiry
Explanation 1 Relevant date – Date on which e-way bill is generated
Time – Validity to be counted from the time of e-way bill generation
Count of a day – Midnight of the day following the e-way bill generation date
Explanation 2 Meaning of “Over dimensional cargo”
138(11) Making available of details of e-way bill generated to the counter party/ies (Supplier/Recipient/Transporter) for corresponding
“Acceptance” or “Rejection”
138(12) If the counterparty does not communicate “Acceptance” or “Rejection” within 72 hours of details made available or at the
time of delivery of goods, then it leads to “Deemed Acceptance”
138(13) E-way bill generated to be valid in every state/UT
138(14) Circumstances where e-way bill not required – Cases (a) to (o) and a gives reference to Annexure which lists 8 items
Explanation The facility of generation, cancellation, updation and assignment of e-way bill shall be made available through SMS to the
supplier, recipient and the transporterRule Summary
Rule Rule Description and Content
138A Documents and devices to be carried by a person-in-charge of a conveyance
138A(1) Documents
1. Invoice/BOS/DC
2. E-way Bill – Physical or Electronic form or mapped to RFID embedded on conveyance
First Proviso Nothing above applies to movement of goods by Rail/Air/Vessel
Second Proviso In case of imported goods, copy of Bill of entry to be carried and details to be specified in Part A
138A(2) RP may obtain IRN – Invoice Reference Number in GST INV 1 and produce in lieu of tax invoice & shall be valid
for a period of 30 days from the date of uploading
138A(3) Based on GST INV 1 – details of Part A of E-way Bill to auto-populate
138A(4) Notified class of persons to obtain a unique RFID, get it embedded on the conveyance & map e-way bill to RFID
prior to movement
138A(5) In exceptional circumstances, commissioner may notify the following documents to be carried instead of e-way
bill
Tax Invoice/BOS/BOE or DCRule Summary
Rule Rule Description and Content
138B Verification of documents and conveyances
138B(1) Power to proper officer to intercept and verify e-way bill in physical or electronic form for all inter-state and
intra-state movement of goods
138B(2) Verification of movement of vehicles through installation of RFID readers (by commissioner)
138B(3) Physical verification by proper officer as authorised by the commissioner or an officer empowered by him
Proviso On receipt of specific information on evasion of tax, physical verification of a specific conveyance can also be
carried out by any other officer after obtaining approval of the Commissioner or an officer authorised by himRule Summary
Rule Rule Description and Content
138C Inspection and verification of goods
138C(1) A summary report of every inspection to be recorded online in EWB 03 – Part A and final report in Part B within
3 days.
Proviso Time limit for final report could be extended to further 3 days owing to sufficient cause.
Explanation The period of 24 hours or, as the case may be, 3 days shall be counted from the midnight of the date on which
the vehicle was intercepted
138C(2) Physical verification cannot be carried out more than once in the same state/UT unless specific info relating to
tax evasion providedRule Summary
Rule Rule Description and Content
138D Facility for uploading information regarding detention of vehicle
If vehicle intercepted and detained for a period > 30 minutes such info may be provided by the transporter in
EWB 04
Explanation Transport or movement of goods by rail/railways does not include cases where leasing of parcel space takes
place
138E Restriction on furnishing of information in PART A of FORM GST EWB-01
No person including
Consignor/consignee/transporter/e-commerce operator/courier agency can fill Part A whether as a supplier or
recipient if,
A composition registered person fails to furnish CMP 08 for 2 consecutive quarters
Other cases if returns not furnished for 2 consecutive months
Statement of Outward Supplies(GSTR 1) for any 2 months or quarter
First Proviso Commissioner may unblock on application received in EWB 05 and order in EWB 06 on sufficient cause, subject
to such conditions/restrictions
Second Proviso No rejection order unless opportunity of being heard provided
Third Proviso Permission/Rejection by State/UT Commissioner deemed to be by Central Commissioner.
Explanation Commissioner means jurisdictional commissionerIMPLICATIONS OF NON - COMPLIANCE
31Actions post Inspection
• If documents are proper
Allow the continuity of movement by Release Order (MOV 05)
• If documents are not proper
Penalty – (Section 122 (xiv)) and 129(1))
Detention of goods and conveyance (Section 129(1))
Prohibition to deal with the goods (in case of no seizure)
Seizure of goods and conveyance
Dispose the goods after a specific time limit/ or immediately in case of exceptional
circumstances
Confiscation or option to pay fine in lieu of it (fine as officer may deem fit-(subject to
upper cap)
Order of demand of tax and penalty (MOV 09)
Release based on payment of tax/penalty or execution of bond/furnishing of security
(MOV 05) post detention or confiscation
Auction & Sale proceeds to CGRule 138E: Restrictions on furnishing of information in Part A of GST EWB-01
Commissioner may allow
Whose details are restricted from being furnishing the said
furnished in Part A of EWB-01? information.
“Commissioner” shall mean
the jurisdictional
Composition taxpayer Other registered commissioner in respect the
not furnished returns taxpayers not furnished persons
for two consecutive tax returns for two
periods consecutive months
33Penalty for no – e-way bill – Section 122 Where a taxable person who– (i) ………………. (ii) ………… (xiv) transports any taxable goods without the cover of documents as may be specified in this behalf; He shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax evaded
Sec 129 Detention seizure, and release of goods
Notwithstanding anything contained in this Act,
– where any person transports any goods or
– stores any goods while they are in transit
– in contravention of the provisions of this Act or the rules made
thereunder,
– The following shall be liable to detention or seizure
• all such goods and
• conveyance used as a means of transport for carrying the said goods and
• documents relating to such goods and conveyance
35Section 129(1) – Detention, Seizure, Release
129(1)(a) : If owner comes forward to pay –
– Taxable goods –on payment of applicable tax + penalty = 100% of tax payable
– Exempted Goods: amount equal to 2% of the value of goods or 25000/-,
whichever is less.
129(1)(b) : If the owner of the goods does not come forward to pay
– Taxable goods on payment of the applicable tax and penalty = 50% of value of
goods
– Exempted goods: amount equal to 5% of the value of goods or 25000/- ,
whichever is less.
129(1)(c) : Alternatively
– furnishing a security equivalent to the amount payable under clause (a) or
clause (b) in such form and manner as may be prescribed
36129(2) : Provisional Release of Goods
The provisions of sec 67(6) shall, mutatis mutandis, apply for detention and
seizure of goods and conveyances.
Sec 67(6) read with Rule 140(1) and (2)
This Section states that the seized goods shall be provisionally released upon
execution of a bond and furnishing security.
Bond and Security for Release of Seized Goods – Rule 140(1)
1. The seized goods must be released on a provisional basis
2. Upon execution of a bond for the value of goods in form GST INS-04 and
3. Furnishing of a security in the form of a bank guarantee
4. Equivalent to the amount of tax, interest and penalty payable
37Failure to Produce Goods that were Provisionally
Released – Rule 140(2)
1. Where the person to whom goods were released
provisionally
2. Fails to produce the goods at the appointed date and place
indicated by the proper officer
3. The security shall be encashed and adjusted against the
tax, interest and penalty in respect of such goods.
38Sec 129: Detention , Seizure and release of goods and
conveyances in transit
129 (3) : Issue Notice
The proper officer detaining or seizing goods or conveyances
shall issue a notice specifying the tax and penalty payable and
thereafter, pass an order for payment of tax and penalty under
clause (a) or clause (b) or clause (c).
129 (4) : Opportunity of being Heard
No tax, interest or penalty shall be determined under sub-section
(3) without giving the person concerned an opportunity of being
heard.
39Contd.. Sec 129
• 129 (5) : On Payment
– On payment of amount referred in sub-section (1), all proceedings in respect
of the notice specified in sub-section (3) shall be deemed to be concluded.
• 129 (6) : Non - Payment
– Where the person transporting any goods or the owner of the goods fails to
pay the amount of tax and penalty as provided in sub-section (1) within
seven days fourteen days of such detention or seizure, further proceedings
shall be initiated in accordance with the provisions of section 130:
– If detained or seized goods are perishable or hazardous in nature or are
likely to depreciate in value with passage of time, the said period of 14 days
may be reduced by the proper officer
40PRACTICAL ASPECTS
Records by Supplier/ Recipient
Records
– Movement owing to Supply
1. Supplier to recipient – A regular Tax Invoice/Bill of Supply
2. Supplier to any other person on behalf of recipient - A Bill to Ship to Tax Invoice/Bill of Supply
3. Supply in Parts (CKD/SKD)/Batches/Lots – A complete invoice for 1st consignment and Delivery Challan (DC)
for subsequent consignments with reference of invoice
4. Import of goods – Bill of Entry
– Movement owing to other than Supply
1. Sales return – DC by person returning and Credit Note by Supplier
2.
3.
Job Work – DC / DC + Job Work Invoice
Repair - DC
Plus E- way Bill
4.
5.
Exhibitions - DC
Demo - DC
(unless
6.
7.
Line Sales – DC & Tax Invoice/BOS as and when supply happens
Sent on Approval – Sale or return - DC specifically
8. Sample - DC
9.
10.
Tools, Jigs, Dyes - DC
Disposal - DC
exempt)
11. Gift – DC
12. Auction – DC
13. Stock transfer to unregistered branch in the state - DCRecords by Transporter
Section 35 (2) read with Rule 58
Sec 35(2) - Every owner or operator of warehouse or go-down or any other place used for storage of goods
and every transporter, irrespective of whether he is a registered person or not, shall maintain records of the
consigner, consignee and other relevant details of the goods in such manner as may be prescribed
Rule 58(1) – Submission of business details by the above referred persons in form GST ENR-01 and obtaining
of a unique enrolment number (TRANSIN – 15 digits)
58(1A) – A common enrolment number PAN India vide GST ENR-02 & the same to be used for E-way rules
(Not GSTIN)
58(2) – Deemed enrolment in State/UT
58(3) – Amendment of details through GST ENR-01
58(4)(a) – The transporter must maintain records, for each of his branches, of
– Goods transported
– Goods delivered
– Goods stored in transit
with GSTIN number of registered consignor and consigneeFORMS SUMMARY
Forms Summary Form Description and Content EWB 01 – Part A & E-way Bill Part B EWB 02 Consolidated E-way Bill EWB – 03 – Part A & Summary Report and Final Report of Inspection Part B EWB 04 Details of detention and interception beyond 30 minutes to be uploaded EWB 05 Application for Unblocking EWB 06 Order for Unblocking
https://mis.ewaybillgst.gov.in/
46PROCEDURALS
48
RECONCILIATION
Reconciliation – Eway Bill Vs. GSTR 1 Vs. GSTR 3B Reasons for Reco Cancelled E-way Bills Rejected E-way Bills Part A filled and pending for Part B Consignment Value less than 50K Exemption available for raising E-way bill Value differences… Reasons other than supply
DEMO THROUGH SCREENSHOTS
Enrolment for Transporters
Enrolment for Transporters
Registration at E-way Bill portal
Login at E-way Bill portal
Dash board
Other menu options
Reports – Sub Menu
E- Way Bill – Part A
E- Way Bill – Part B
E- Way Bill – Part B
Bulk E- Way Bill generation
ANALYSIS
Acceptable Errors in E-way Bill • Spelling mistakes of consignor/consignee (provided GSTIN is correct) • Error in PIN Code (provided address of consignor/consignee is correct and such error does not extend the validity of e-way bill) • Error in address of the consignee but locality and other details are correct • Error in 1 or 2 digits of document number mentioned in e-way bill • Error in 4 or 6 digit level of HSN where the first 2 digits of HSN are correct and the rate of tax mentioned is correct • Error in 1 or 2 digits/characters of the vehicle number.
Fatal Errors in E-way Bill • Non generation of e-way bill when required • Non – filling/ updation of Part B (except 50kms from consignor to transporter to consignee) • Wrong GSTIN • Error in PIN code as well as address of consignor/consignee • Error in address of the consignee including errors in locality and other details • Error in 3 or more digits of document number mentioned in e-way bill • Error in 4 or 6 digit level of HSN where the first 2 digits of HSN are also wrong and/or the rate of tax mentioned is also wrong • Error in 3 or more digits/characters of the vehicle number. • All other errors not covered under Acceptable errors
Myths & Realities about E-way Bill
• E-way bill not required within 50kms movement
– Only filling part B is not required from consignor’s place to transporter’s place/
updation of part B not required from transporter’s place to consignee’s place.
Part A is mandatory
• Multiple E-way bills required in case of transhipment
– Not required – Same –e-way bill Part B to be updated in case of same transporter
or Assignment to another transporter & in turn he will update the Part B
• Start of Validity period – When Part A filled
– Validity period starts from the date of filling Part B
• E-way bill can be generated only on Web(Online)
– E way bill can be generated through various modes like Web (Online), Android
App, SMS, using Bulk Upload Tool and API based site to site integrationMyths & Realities about E-way Bill
• Only single user for each registration/enrolment
– Multiple Sub users and allocation of roles are possible within a single
registration/common enrolment. This way large transporters can declare
their various offices as sub-users.
• No. of E-way bills is equal to No. of Invoices/documents
– No of e-way bills is equal to No. of movements (transportation to be more
specific)
• Start of Validity period – When Part A filled
– Validity period starts from the date of filling Part BCase Study on Bill to Ship to Ref Press Release dated 23rd April 2018
Case 1 – E-way Bill generated by B
Case 2– E-way Bill generated by A
E-way bill in case of exports and Imports How the distance has to be calculated, if the consignments are imported from or exported to other country? The approximate distance for movement of consignment from the source to destination has to be considered based on the distance within the country. That is in case of export, the consignor place to the place from where the consignment is leaving the country, after customs clearance and in case of import, the place where the consignment is reached the country to the destination place and cleared by Customs
Key Issues
1. If e-way Bill expires and the same is not extended within the permitted time period what to do?
2. If e-way bill is generated but movement itself was not done?
3. Sales return where recipient is not willing to issue to delivery challan?
4. Different distinct person selected.
5. Documentation in case of supply involving no movement. (Supplier Address and Address of delivery
both are same)? – Purchase orders, same line of business, procure and deliver other goods.
6. What Value to be specified in case of goods sent for the purpose of job work and while job worker
returning back the same? – Cost plus 10% valuation – Hard & fast
7. What value to be reckoned when goods are moved pursuant to a service supplied?
8. When is the movement terminated?
9. Human errors – Inspection done and orders passed, Bond/Security a better option…
10. A supplies to B, B Supplies to C and C Supplies to D.
A raises Bill to B and Ship to D
B raises Bill to C
C raises Bill to D
How does B prove that it is a genuine transaction?
11. Transport of empty containers & cylinders?ORDERS & RULINGS
METRO INSTITUTES OF MEDICAL SCIENCES PVT LTD Vs STATE OF U.P.
• Migration Not Complete
– Pending Migration of existing tax payers, issuance of provisional ID and a Password
– failure of the Department to issue PW corresponding to correct the provisional ID –
– the petitioner is unable to complete the process of migration
• the petitioner could not file returns or pay taxes,
• generate the E-way bill and access various online services –
– The petitioner contention that for no fault of his but on account of laches at the hands of the competent
authority the petitioner-company may suffer adverse financial consequences which may be arbitrary –
• HELD –
– the concerned respondent authority are directed to immediately issue a password to the petitioner for
completing migration process on the GST Portal for upload its returns and to deposit the due tax.
– It is further directed that the concerned respondent authority will allow the petitioner to complete migration
to GST upon the receipt of such password as such issued to the petitioner-company, in accordance with law -
the writ petition is allowed
74IQRA ROADWAYS (INDIA) Vs STATE OF U.P.
• validity and jurisdiction of detention and seizure of goods
– obligation to carry E-Way Bill – HELD – At the time of detention,
– the detaining authority has clearly mentioned in the detention memo that the necessary
physical verification is required
– as the E-Way Bill, which was produced, was not relevant as the date and time mentioned
have already expired –
– the goods which were covered with the documents have already been released by the
respondent.
– However, the goods which were not accompanied with proper documents have been
seized for which a notice under Section 129(3) of the U.P. G.S.T. Act has been issued –
– it is directed that the goods and vehicle be released forthwith on payment of the amount
of tax as has been indicated in the show cause notice - any observation of this order will
not affect any of the proceedings which is to be carried out by the respondents - the writ
petition is dismissed
75Bhushan Power & Steel Limited – Minor Breach
Appellate Authority: Finds imposition of penalty for minor procedural lapse in e-way bill ‘harsh and
unsustainable’
Facts
– the goods accompanied by proper documents were transhipped into another vehicle at Chandigarh and the
vehicle no. was updated by the appellant and
– e-way bill was valid at the time of transhipment of vehicle,
– however, the validity of e-way expired on the midnight of the same day and vehicle was inspected and
detained;
– The appellant was not given a reasonable opportunity to update the Part-A of e-way bill,
– whereas Part- B was duly filled which puts to rest any doubts about intention of the appellant to evade tax;
– Remarks, Section 68 read with Rule 138-A, provides that ‘non-furnishing of information in Part B 01 of FORM
GST EWB -01 amounts to the e-way bill becoming not a valid document’;
– Therefore, “It appears that e-way bill is invalid only if Part B of E-way bill is not filled or a considerable time to
update Part-A has gone by”;
Order :
– Imposes a penalty of Rs. 1000 u/s 125 of CGST/HPGST Act r/w Rule 138(10)
76Neva Plantation Pvt. Ltd – Valuation
• Appellate Authority: Sets-aside order citing improper valuation methodology,
imposes penalty for not carrying ‘valid documents’
• Facts
– transporting goods without proper documents such as e-way bill in respect of machinery
sent for repairs outside the State;
– that goods sent in the conveyance were not for 'sale', the transaction has no tax
implications,
– Officer considered 9-month old invoice value for valuation of transaction.
– Adjudicating Authority has set-aside order passed by proper officer
– Also Directed for refund of tax & penalty deposited
• Order
– Penalty of Rs. 10,000 levied stating that the taxpayer has violated provisions of Section
122(1) of CGST Act/HPGST Act.
77Other Cases
• Godrej Consumer Products Ltd : Typographic error in entering distance in E-way bill a minor
lapse, sets aside order -
• Directs Revenue to consider Petitioner’s contention, allows goods release upon furnishing
bank-guarantee Pact Machines Pvt. Ltd. vs. The Asst. State Tax Officer (Intelligence)
• Invoice and E-way bill showing different address, a clerical error, directs vehicle release M R
Traders
• Vehicle number being hand written on E-Way Bill. Held there was no irregularity in transaction
and seizure was not sustainable. MAA Vindhyavasini Tobacco Pvt. Ltd.
78ADVANCE RULING
79Sonkamal Enterprises Private Limited
Query : Whether the procedure to raise the invoice from Mumbai HO for imports
received at Haldia Port Kolkata where we do not have any separate GST Registration
and Charge IGST from Mumbai to our Customers is correct? or do we have to take
separate Registration in the State of West Bengal for the below mentioned
transactions?
Ans: For this transaction NO separate registration in the state of West Bengal is
required.
Query : If we do not need separate registration in west Bengal, can we do the
transaction on Mumbai HO GSTIN, then in case of issuance of e way bill is it correct to
Mention the GSTIN of Mumbai and Dispatch place of Haldia Port ?
Ans: Answered in affirmative subject to following procedure and payment of taxes as
per law.
80Sanjog Steels Pvt. Ltd.
Query
1) Whether the supply from M/s SSPL to M/s X on a "Bill to ship to "mode as per
provisions of Section 10(1)(b) of IGST Act, 2017 is permissible?
2) Whether as per the press note dated 23.04.2018 issued in relation to the
transactions of supply u/s 10(1)(b) of the IGST Act, 2017, the use of e-way bill in
the aforesaid facts in the column of "ship to "of ultimate customer M/s X is
permissible?
Ruling
1) The supply from M/s SSPL to M/s. X on a "Bill to Ship to" mode as per provisions
of section 10(1) (b) of IGST Act, 2017 is permissible.
2) The applicant can issue an e-way bill in which the 'bill to 'will be mentioned in
the name of M/s RSE/RPG whereas 'ship to 'would be in the name of final
customer i.e. M/s X.
81KEY TAKE AWAYS • When in doubt Raise E-way Bill • Diligence and Due care while generating E-way Bill • Maker Checker verification preferred • If you wish to contest - Bond and Security could be a better option • E-way Bill theory and Practice • Reconciliation a must to carry out
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