April 27, 2017

Freight worth more than Rs 50,000 requires prior online registration of consignment and generation of e-way bill: CBEC


Under the Goods and Services Tax (GST) regime, freight worth more than Rs 50,000 will require prior online registration of the consignment and generation of an “Electronic Way (e-way) Bill.” Tax officials would be empowered to inspect the e-way bill any time during the journey to check for tax evasion.

According to draft rules issued by the Central Board of Excise and Customs (CBEC) on e-way bill, registered entities are required to furnish, in a prescribed format, GST-Network (GSTN) website information relating to any goods worth more than Rs 50,000 they intend to move within a state or outside. CBEC also released draft rules for audit and assessment.

GSTN will generate e-way bills that will be valid for 1-15 days from the date of generation depending on distance to be traveled, where one day would equal 100 kilometers and over 15 days would be for more than 1,000 kilometers or more.

The draft rules state that “Every registered person who causes movement of goods of consignment value exceeding Rs 50,000 in relation to a supply, for reasons other than supply, or due to inward supply from an unregistered person, shall, before commencement of movement, furnish information relating to the said goods in Part A of Form GST INS-01, electronically, on the common portal GSTN.”

It further stated that "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."

Moreover, it provided that “The person in-charge of conveyance will be required to carry the invoice or bill of supply or delivery challan and a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device (RFID) embedded on to the conveyance.”

The rules authorize the tax commissioner or an officer empowered by him on his behalf to intercept any conveyance to verify the e-way bill or the number in physical form for all inter-state and intra-state movement of goods.

According to the rules, physical verification of conveyances can be carried out on specific information of tax evasion.

The officer will be required to submit a summary report of every inspection of goods in transit within 24 hours and the final report within three days of inspection.

Further, the rules stated that "Where a vehicle has been intercepted and detained for a period exceeding 30 minutes, the transporter may upload the said information in (prescribed form) on the common (GSTN) portal."

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