Analysis of New e-Way Bill Rules

1. E-Way Bill Rules notified vide Rule 138 through Notification 27/2017 dated 30-08-2017. Download Complete Official Notification from here

2. The date of implementation has not been spelt. And it shall be notified later

3. E- Way Bill is not applicable to

  • Movement of goods between two unregistered persons
  • Where Consignment value of goods is lesser than Rs. 50,000. Consignment value shall include tax also (in the opinion of the author) [R.138(1)}
  • Transportation of goods by a non motorized conveyance [Rule 138(14)(b)] [Motorized two wheeler, three wheeler not excluded]
  • Postal baggages transported by Department of Posts [R.138(14)(a)]
  • Goods for personal use [R.138(14)(a)]
  • House hold effects [R.138(14)(a)]
  • Jewellery and Jewellery articles, Precious or Semi Precious Stones, under Chapter 71 R.138(14)(a)]
  • Corals [R.138(14)(a)]
  • Currency [R.138(14)(a)]
  • LPG for supply to Household and non domestic exempted category and
  • Kerosene oil [R.138(14)(a)]
  • Exempted Goods [R.138(14)(a)] like a) live animals (b) unfrozen meat,
  • fish ( c) Fresh Milk, curd, lassi, (d) unbranded paneer, (e)fresh fruits, (f) vegetables, (g) Unbranded rice,flour etc., (h) salt (i) bread (j) plastic and glass bangles, (k) firewood,( l) newspaper, books( m) Mannnually operated or Animal driven agri implements, (n)puja samagri
  • Transportation of goods from port, airport, air cargo complex and land
  • customs station to an inland container depot or a container freight station for clearance by Customs [R. 138(14)(c)]
  • Movement of goods with in notified area. [R.138(14)(d)]

4. Following items though exempted from GST have not been exempted form E- Way Bill Rules

  1. Prasadam supplied by religious places like temples, mosques, churches, gurudwaras, dargahs, etc.
  2. Electrical Energy
  3. Supply of Lottery that has already suffered tax in the hands of state ,

Union territory or local authority when supplied to distributor or selling agent

Following items though not leviable to GST have not been exempted

from E-Way bill rules:

  1. a) Alcohlic liquor for human consumption b)  Petroleum Products

E-Way Bill Rules are applicable to a registered person who causes movement of goods. It means the E-Way Bill Rules are not applicable to:

  • Unregistered Person
  • Where no movement is involved.

Comments:

1. As per Explanation 1 to Rule 138(3), where the goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of the movement of goods.

2. Further where supply takes place between two registered person and recipient undertakes to collect the goods from the supplier through his conveyance, it is the recipient and not the supplier who causes movement of goods and hence E Way bill should be generated by recipient and not the supplier.

6. E- Way Bill Rule is applicable where consignment value exceeds Rs. 50,000/- .

7. E- Way Bill is applicable for movement of goods:

i) In relation to Supply

ii) For reasons other than supply

iii) Due to Inward Supply from Unregistered Person

Hence E-Way bill is applicable to movement caused by registered person of consignment value exceeding Rs. 50,000 through motorized conveyance for

  • Movement of goods between branches of same concern.
  • Movement of  goods for Job Work
  • Goods Sent for Repair and sent back
  • Purchase Return
  • Sale on approval basis
  • Door to door movement

8. Exemption for Movements with transporter up to 10 Kms

As per 3rd Proviso to Rule 138(3) Where the goods are transported

a) for a distance of less than ten kilometres

b) within the State or Union territory

c) from the place of business of the consignor to the place of business of the transporter for further transportation the supplier or transporter may not furnish vehicle number.

As per proviso to R. 138(5), where the goods are transported for a distance of less than ten kilometres within the State or Union territory from the place of business of the transporter  finally to the place of business of the consignee, the details of conveyance may not be updated in the e-way bill.

Comments:

It means that there is no exemption from providing vehicle details where:

a) Place of business of transporter is more than 10 Kms away from consignor or consignee

b) Place of business of transporter is in some other state or union territory e.g. in case of

i) Chd, Mohali, Panchkula or

ii) Gurgaon, Delhi, Noida

If goods do not finally reach the consignee’s place of business, there is no exemption from providing conveyance details.

Furnishing of Information

Following in formation in Part A of E- Way Bills to be compulsorily furnished before commencement of movement of goods :

A.1 GSTIN of Recipient

A.2 Place of Delivery (PIN Code of place of delivery)

A.3 Invoice or Challan Number

A.4 Invoice or Challan Date

A.5 Value of Goods

A.6 HSN Code

A.7 Reason for Transportation (Supply, Export or Import, Job Work, SKD or CKD , Recipient not known ,  Line Sales , Sales Return , Exhibition or fairs , For own use , Others)

A.8 Transport Document Number (Transport Document number indicates Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number)

10. Generation of E-Way Bill

1. As per Rule 138(2), Where goods are transported by registered person as:

a) consignor or

b) the recipient of supply as the consignee

In

a) His Own Conveyance

b) Hired Conveyance [i.e. GTO]

c) By railways

d) By Air Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, update the details of conveyance in the e-way bill on the common portal in FORM GST EWB-01 By Vessel

E- Way bill may be generated by consignor or above recipient after furnishing Vehicle Number in Part B of EWB-01

2. If due to vehicle number not being known to consignor or consignee, it is not generated by him and as per Rule 138(3) goods are handed over to a transporter for transportation by road,

  • the registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01 on the common portal and
  • the e-way bill shall be generated by the transporter on the said portal
  • on the basis of the information furnished by the registered person in Part A of FORM GST EWB-01 (it should be Part A and Part B, in the opinion of the author)

3. As per Explanation 2 to Rule 138(3), The information in Part A of FORMGST EWB-01 shall be furnished by the consignor or the recipient of the supply as consignee  where the goods are transported by railways or by air or by vessel.

  • Comments: There is no requirement to generate E-Way bill in such cases4.  As per Rule 138(4), Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.

11. Updation of EWB in case of Transshipment

As per Rule 138(5),

  • Any transporter transferring goods from one conveyance to another
  • in the course of transit
  • shall,
  • before such transfer and further movement of goods,
  • update the details of conveyance in the e-way bill on the common portal in FORM GST EWB-01

Comments: Since the movement of goods commences from the place of business of consignor, the goods can be said to be in course of transit even while they are lying at the store of transporter.

12. Transporter to generate Consolidated EWB for Multiple Consignments

12.1 Optional Generation of Consolidated bill under R. 138(6)]

  • After e-way bill has been generated in accordance with the provisions of sub-rule (1),
  • Where multiple consignments are intended to be transported in one conveyance,
  • the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and
  • a consolidated e-way bill in FORM GST EWB-02 maybe generated byhim on the said common portal prior to the movement of goods [Comments: E Way Bill is generated under Rule 138(1), only where bill is consignment value is more than Rs. 50,000. Generation of Consolidated E- Way bill in such cases is optional]

2. Compulsory Generation of E Way Bill under Rule 138(7)

  • Where the consignor or the consignee has not generated FORM GST EWB-01 in accordance with the provisions of sub-rule (1) and
  • the value of goods carried in the conveyance is more than fifty thousand rupees,
  • the transporter shall generate FORM GST EWB-01 on the basis of invoice or bill of supply or delivery challan, as the case may be, and
  • may also generate a consolidated e-way bill in FORM GST EWB- 02 on the common portal prior to the movement of goods

Download Complete Information on eWay Bill Rules

Download Complete Official Notification from here

By: CA VINAMAR GUPTA

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