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Compliance Rules of E-Way Bill in GST

Compliance Rules of E-Way Bill in GST

What is E- Way Bill in Goods & Service Tax?

Basically, GST E-Way Bill is an electronic bill required for transportation of goods under GST. Every taxpayer who transports goods of consignment value of more than Rs. 50,000 is required to get E-way Bill generated by the GSTN portal. This Bill needs to be carried along with the goods transferred.

Movement of goods in relation to:

  1. Supply
  2. Reasons other than supply
  3. Inward supply by an unregistered dealer

call for the generation of Bill.

Supply means

  1. Sale: Sale of goods in lieu of payment
  2. Transfer: Branch transfers
  3. Barter: Payment of goods instead of money

Following supplies shall be taken into consideration in context to E-Way Bill

  1. Supplied for consideration (means payment) in course of business
  2. Supplied for consideration (means payment) which may not be in course of business
  3. Supplies without consideration

Central Board of Excise & Customs had proposed the introduction of E-Way Bill under GST in the transition of goods above INR 50,000. This would require an online registration that will give the tax authorities the right to inspect goods anytime if they suspect tax evasion.

Once the taxpayer files for electronic bill and uploads the same in the prescribed format of GSTN official website, GSTN will create E-Way Bills that would be valid for a period of 1 to 15 days in which one day is considered as 100 km and 20 days is counted as more than 1000 km in transit.

Note: Once the E-Way Bill is generated, a unique Bill number is made available to the supplier, recipient, and transporter on the portal.

Validity of E-Way Bill According to Distance

  • Less than 100 km: 1 Day
  • 100 km or more but less than 300 km: 3 Days
  • 300 km or more but less than 500 km: 5 Days
  • 500 km or more but less than 1000 km: 10 Days
  • 1000 km or more: 20 Days

Documents to be Carried by Person in Charge of Conveyance

  1. The Invoice or Bill of Supply or Delivery Challan
  2. Copy of E-Way Bill or E-Way Bill Number,
  3. Delivery Challan, where goods are transported other than by way of supply

Also Read: Know Your GSTIN Number

Methods of Generating GST E-Way Bill

Case I

  • Who: Registered person in GST
  • Time: Ahead of Goods Movement
  • Annexure: Complete Part A
  • Form: GST INS- 1

Case II

  • Who: Registered person is consignee or consignor
  • Time: Ahead of Goods Movement
  • Annexure: Complete Part B
  • Form: GST INS- 1

Case III

  • Who: Registered person is consignee or consignor and goods are transferred over to the transporter of goods
  • Time: Ahead of Goods Movement
  • Annexure: Complete Part A & B
  • Form: GST INS- 1

Case IV

  • Who: Recipient is registered to the unregistered person
  • Time: Recipient undertakes compliance assuming as supplier

Case V

  • Who: Transporter of Goods
  • Time: Ahead of Goods Movement
  • Annexure: Complete the Form GST INS-1

Inspection & Verification of Goods

  1. A summary report of every inspection of goods shall be recorded online by Inspecting Officer in Part A of Form GST INS -03 within 24 hours of inspection
  2. The final report is recorded in Part B of Form GST INS -03  within 3 days of inspection
  3. If the inspection and physical verification of goods is carried out at one State or the other during the transit, no further inspection shall be carried out in the State unless there is a subsequent suspicion regarding tax evasion

Also Read: Offences & Penalty Provisions Under GST

Information Regarding Detention of Vehicle

If the vehicle is detained for more than 30 minutes, the transporter should upload the Form giving the information in GST INS- 04.

 

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