Insights on E-way Bill under GST

GST e-way bill is an electronic bill that would be needed for the goods movement if at all the goods value goes above INR 50,000. GSTN portal will be a designated place from which one can generate this bill and this bill must be possessed by every registered taxpayer along with the goods that are transferred. The Central Board of Excise and Customs (CBEC) have laid down several rules and regulations for the handling of this specific bill.

What does ‘supply’ refer to in GST e-way Bill?

A supply could be:

• Supplied for a payment in the course of business
• Supplies made for a payment which could not be in the course of business
• Supplies without any consideration

GST is about to roll from July 01, 2017 and it is going to change the way organizations conduct the businesses. All the business irrespective of their sizes would need to file their IT returns through GST which would be mainly through Tally ERP 9 software as it’s completely integrated with GST and majority of the businesses in India work with Tally software.

Under the GST regime, for transiting goods amounting to INR 50,000 or more, CBEC has proposed a GST e-way bill. What this will do is ask for online registration of the goods consignment which will provide the tax authorities a right to evaluate the products anytime if they doubt a situation where tax has been evaded. The board has also issued a rule of draft over the way of electronic billing, i.e. e-way billing. As per this draft the registered establishments would need to upload the details of concerned commodities which they desire to move in or out of the state in a prescribed format.

In this scenario, the GSTN would create e-way bills valid for a term of 1 to 15 days. Here there is a condition of distance travelling wherein one day is considered as 100 km and 15 days for over 1000 km in transit. The draft rule also states that once the e-way bill gets generated on the common portal, the recipient, supplier and transporter would receive a unique e-way bill number (EBN) on the common portal.

The person who is in charge of conveyance will mandatorily require keeping the invoice of supply or delivery challan along with the copy of the e-way bill or the EBN either in physical or in the format of Radio Frequency Identification Device (RFID) and needs to be attached to the conveyance. This associated EBN can be asked upon by the tax commissioner or an authorized officer to authenticate the details as far all the intra state and inter-state movement of goods are concerned.

As laid down by the rules, the authentication of physical conveyance can be taken out in the particular information of stealing of taxes.

E-way bill under the GST will bring about a good coordination between the transporters and the government and would lead to a good function of the business thus elimination any tax evasion.