Introduction

Goods and Services Tax’s (GST) e-Way bill system is a crucial measure against tax evasion and it also promises to enable faster movement of goods through a seamless portal-driven payment system. The e-way bills were rolled out with much of fanfare on 01.02.2018., however, the with the eway bill generation platform facing technical glitches, the Government had aborted the full fledged rollout of the system.

Inter-state E-way bill to be rolled w.e.f 01.04.2018 out with certain simplification in E-way bill rules

The GST Council headed by Finance Minister Arun Jaitley approved the rollout of inter-state e-Way bill or electronic-Way from April 1, while E-Way Bill for intra-state movement of goods will be introduced in a phased manner. Also The GST Council also relaxed certain rules related to e-Way Bill, which will essentially reduce the load on the portal. The relaxation was provided by way of an amendment to Rule 138 of the Central Goods and Service Tax Rules, 2017 by Notification No. 12/2018-Central Tax dated 07.03.2018. Major changes bought around to further simplify the procedure for movement of goods under the Goods and Services Tax regime is as follows –

1. Under the new rules, in the case of inter-state movement of goods, there will be no need for e-way bill if the consignment’s total value is over Rs 50,000 but the individual consignment is valued at less than Rs 50,000.
2. If both exempted and taxable goods are moved, only the value of the taxable supply will be considered for the purpose of generating an e-way bill.
3. Earlier movement of Goods within a state did not need fill Part B (Conveyance details) of the e-way bill for distances of up to 10 km. This limit has now been increased to 50 km.
4. Earlier, after the expiry of the validity period, the transporter had to generate a new e-way bill.However, in terms of the amendment, if the goods cannot be transported within the validity period of the e-way bill, the transporter may extend the validity period in case of trans-shipment or in case of circumstances of an exceptional nature.An additional field place of dispatch has been added in the e-way bill to address vehicle breakdown or such other contingencies.
5. Earlier the unique number generated was valid for 72 hours for updating of Part B of the E-way bill, however, vide this amendment, the same has been extended upto 15 days.
6. The e-way bill will be deemed to be accepted upon delivery of goods or the expiry of 72 hours of its generation, whichever is earlier.
7. No e-way bill is needed for transit cargo from/to Nepal or Bhutan.
8. In case of movement of goods on account of job-work from one state to another, now the registered job worker can also generate e-way bill.
9. Extra validity period has been provided for Over Dimensional Cargo (ODC).
10. Validity of one day will expire at midnight of the day immediately following the date of generation of e-way bill.
11. In case of movement of goods by railways, airways and waterways, the e-way bill can be generated even after commencement of movement of goods. However, in terms of amendment, the Railways shall not deliver goods unless it is produced with e-way bill at the time of delivery of goods
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Conclusion

Due to hardship faced by the tax payers under the GST Regime the Government has come up with the relief and relaxation by the virtue of this amendment. The government has changed e-way bill rules which are expected to help business entities in smooth transportation of goods and ease of doing business.Thus by the virtue of these notification the Government has again tried reiterate its stand on “ease of doing business”.

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Founder Member

Bhaskar Thakkar

Chief Executive officer

BT Associates, India

thakkar@btassociate.com

Twenty years of experience in tax practice. Specialist in structuring & planning and tax optimization under indirect tax. Lead eastern India indirect tax practice of Ernst & Young in past.