E WAY BILL- “The document requisite”


In the event of movement of goods, there are certain pre-requisites which ought to be taken care of :

Earlier in the older Indirect tax regime of India, the movement of goods had to be accompanied by certain documents . They served as information to the taxation authorities with respect to bona fides of the goods being transported in a vehicle. To simply put, earlier with out “e sugam”(erst while “the document requisite”) , goods were deemed to be moved illegally .

It is imperative that every Indirect tax legislation has this blockade built-in, in order to curb the illegal movement of goods, which we often call as smuggling. Hence even in the new GST taxation regime the same is built-in.

Section 68 of the CGST Act clearly states that certain documents be carried by the person in charge of conveyance, if certain X-Y-Z conditions (which will be later discussed) are met, in order to persent the same for verification if a proper officer intercepts the vehicle carrying goods. Hence due to the requirement of this section and by virtue of the power granted under this section 164 of the CGST Act (the section which gives government to make rules) E-WAY Bill was introduced .

Certain basic Questions and Answers:

What is E-WAY Bill?

Simply put it is the information which has to be provided to the GST department before movement of goods.

When should I file E-WAY Bill?

If your consignment value is in excess of Rs 50,000/-  before the movement of goods.

Who is liable to issue E-WAY Bill?

The Supplier (Registered or Un-registered). If un-registered supplier is in the equation then the registered receiver has to take care of the compliance.

Transporter- On his own motion or if supplier has not generated e way bill

How should I issue E-WAY Bill?

Through the online portal

Karnataka, Rajasthan, Uttarakhand, Kerala, Jharkand, Sikkim, Gujarat and Maharashtra have notified e way bill. Hence transporters and suppliers in these states can issue e way bill by logging in to the common portal.

Till when will the E-WAY Bill be valid?

Its kind of unique validity period One day validity for every 100 kms.

Documents required to generate E-WAY Bill?

Invoices and other documents such as bill of supply , challan related to consignment.

Transporter information: Transporter ID or Vehicle No (if transported by road) along with transport document number and date of document (if transportation is by any means other than road)

Any exemption to E WAY Bill?

E way bill need not be obtained if you are transporting certain specified goods (Annexure available in link ) -http://www.cbec.gov.in/resources//htdocs-cbec/gst/Ntfn%2027_2017.pdf

If means of transportation is non motorised

If you are transporting goods 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 such other notified areas as may be prescribed.

Authors Comments:

As said in the introduction it is quite expected out of every law that it in itself provides for certain safe guards to ensure that the very purpose for which the law is built, does not get defeated.

Though E- WAY Bill is necessary to ensure smooth implementation of GST and governance of the same, there are certain shortcomings which have to be dealt with – every project has a shortcoming in its pilot phase. But more than that, over and above the shortcomings of the IT Infrastructure which majority are debating on , I would like to throw light on another intrinsic shortcoming of this compliance.

As only few states have notified E-WAY Bill system, only suppliers and transporters from that state can issue E-WAY Bill through common portal. This has led to lot of difficulties in inter state supply. For a mere demonstration let us assume that I am a purchaser from Karnataka, and my supplier is from Tamil Nadu. Tamil Nadu has not yet notified E-WAY Bill , for this reason the supplier cannot issue the same. But on the other hand, movement of goods in Karnataka need E-WAY Bill. Hence it has become an unnecessary burden on purchasers in the notified states. The same shall persist(for a short period of time) untill all the states notify E WAY Bill.

Tough the hype around the readiness of infrastructure of E-WAY bill must be heeded to, nevertheless there will always be certain inherent lags, despite the readiness – un hyped and intrinsic.