Briefing on E-Way Bill System:
E-way bill, an electronic documentation detailing the movement of goods is a key anti-tax evasion measure in GST anatomy. An electronic way bill is required to be generated in FORM GST EWB-01 by registered person causing all inter-state or intra-state movement of goods exceeding consignment value Rs. 50,000 or exceeding the prescribed limit notified by respective States. However, in case of inter-state movement of goods by principal to job worker or in case of transport of handicraft goods, e-way bill should be generated irrespective of the consignment value. Transporter or e-commerce operator can also generate such bill after being authorized by the registered person. However, the registered recipient shall be deemed to cause movement of goods when procured goods from unregistered supplier. Generation of e-way bill is exempt in certain cases as prescribed1.
The validity of e-way bill generated depends on the distance covered by goods. It will be valid for one day in case of distance covered upto 100 Km and one additional day for every 100 Km. or part thereof thereafter. The e-way bill can be generated or cancelled within 24 hours through portal, SMS, android APP or API.
In case of transhipment of goods, the details of conveyance are required to be updated in the e-way bill on the common portal. The e-way bill number may also be assigned to another registered or enrolled transporter for updating the information. The transporter may also generate a single consolidated e-way bill in FORM EWB-02 containing details of multiple consignments transported in one conveyance.
Facility of generation of unique common enrolment number has also been provided to the transporter having multiple registrations in various States with same PAN, by submitting details in FORM GST ENR-02. Thereafter, the transporter shall not be allowed to use GSTIN of different States for the purposes of e-way bill instead shall use the unique common enrolment number for the purpose of E-way bill.
The person in charge of a conveyance shall carry the invoice, bill of supply or delivery challan, as the case may be. Additionally, e-way bill in physical or electronic form is also required in case of movement of goods by road. In lieu of tax invoice, an Invoice Reference Number may be obtained by uploading details in FORM GST INV-1.
Procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances:
The proper officer is authorized to intercept any conveyance carrying goods for verification of documents required to be carried by person in charge of conveyance and inspection of goods.
If prima facie, no discrepancies are found on verification of documents relating to goods and conveyance, the conveyance shall be allowed to move further.
Proper officer shall record the statement of the person in charge of conveyance in FORM GST MOV-01 in case certain discrepancies are found in the documents or officer decides to inspect the goods. An order of inspection shall be passed in FORM GST MOV-02 and a summary report of inspection in Part A of FORM GST EWB-03 on the common portal shall be uploaded.
Inspection proceedings should be completed within 3 days from the above order or within such period as may extended by Commissioner and a copy of report of physical verification shall be served on the person in charge in FORM GST MOV-04. Moreover, a final report of the inspection in Part B of FORM GST EWB-03 shall be uploaded on common portal.
In absence of discrepancies, conveyance shall be allowed to move further by issuing release order in FORM GST MOV-05. Otherwise detention order shall be issued in FORM GST MOV-06 and a notice specifying the tax and penalty in FORM GST MOV-07 only in relation to such good/conveyance which contravened the provisions of Act or Rules.
On payment of appropriate tax and penalty by owner of goods, the goods and conveyance shall be released by order in FORM GST MOV-05. Further, an order in FORM GST MOV-09 shall also be uploaded on common portal in pursuance of which, accrued demand shall be added in electronic credit ledger with corresponding debit in electronic credit ledger or electronic cash ledger on payment. The owner may also get the goods released after furnishing a bond in FORM GST MOV-08 along with bank guarantee equal to amount of tax and penalty levied.
In case the payment is not paid within 7 days, confiscation proceedings shall be initiated by issuing notice in FORM GST MOV-10 specifying the tax, penalty and fine in lieu of confiscation of goods and conveyance. Thereafter, confiscation order shall be passed in FORM GST MOV-11 after giving an opportunity of being heard to the concerned person and accordingly the electronic credit ledger shall be credited with debit in electronic credit ledger or electronic cash ledger on payment. The title to goods and conveyance shall be transferred to Central Government.
The goods and conveyance shall be auctioned by the proper officer to discharge the liability in case the payment is not made within three months. Time allowed can be modified in case of perishable or hazardous goods.
The procedure narrated above shall be applicable mutatis mutandis for an order or proceeding under the IGST Act, 2017.
It has been stated in law that the goods in transit can be physically verified only once in any State, unless information relating to evasion of tax is made available subsequently. However, since Forms are not available on the common portal currently, it has been clarified that hard copies of the notices or orders can be shown to another tax authority as a proof of initiation of action.
It has also been clarified by the government that only such consignment/vehicle shall be detained or confiscated in respect of which there is a violation of the provisions of the GST Acts or rules made there under.
1Rule 138(14) of Central GST Rules
2Notification No. 28/2018-Central Tax dated 19th June, 2018
3Circular No. 41/158/2018-GST dated 13th April, 2018 as amended by,
Circular no. 49/23/2018-GST dated 21st June, 2018
4Section 129 of Central GST Act, 2017
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