Monday, 15 January 2018

A Fiction- Trouble on transporters due to E-Way bill

Arjuna (Fictional Character): Krishna, There was Festival of Makar Sankrant yesterday. The Government also has given the Til-Gul of E-Way bill to the taxpayers. But now due to E-Way bills on whom the ‘Sankrant’ will come i.e. Trouble?
Krishna (Fictional Character): Arjuna, E-way bill is an electronic document generated on the GST portal evidencing movement of goods. The nationwide e-way Bill system will be ready to be rolled out on a trial basis latest by 16th January, 2018 i.e, from tomorrow and from the 1st February the implementation of nationwide e-way Bill system for interstate supply will be done on a compulsory basis. Therefore, the Sankrant will come on Consignor, Consignee and transporter.
Arjuna: Krishna, what is the importance of E-way bill for Consignor?
Krishna: Arjuna, Consignor means supplier. Every registered person who causes movement of goods of consignment value more than Rs. 50000/- is required to furnish E-way bill. In that the details of GSTIN of recipient, place of delivery (PIN Code), invoice or challan number and date, value of goods, HSN code, transport document number etc are to be given. On the basis of this information, the GSTR 1 of the supplier will be generated on the portal. That’s why it is important for the Consignor.
Arjuna: Krishna, what is the importance of E-way bill for Consignee?
Krishna: Arjuna, Consignee means receiver. The e-way bill is very much important for the consignee. All the details of consignment received can be cross checked by E-way bill. Whether the supply is as per our requirement?, its value, HSN Codes, etc can be verified through E-way bill. ITC allowance may be affected due to this on the proof of receipt of goods. As, ITC is available on receipt of goods only.
Arjuna: Krishna, Is there any relation between transporter and E-way bill?

Krishna: Arjuna, Transporter is an important link between consignor and consignee. If either the consignor or consignee do not generate the e-way bill and the value of goods is more than Rs.50,000/- then responsibility of the generating e-way bill will be of the transporter. Transporter should check whether the consignment is sent to right person, or received from correct supplier, Vehicle no., etc. Where a vehicle has been intercepted and detained, the transporter may upload the said information in FORM GST EWB-04 on the common portal. A taxable person who transports any taxable goods without the cover of e-way bill shall be liable to a penalty of Rs. 10,000/- or tax sought to be evaded whichever is greater.
Arjuna: Krishna, what is the importance of E-way bill for Tax officer?
Krishna: Arjuna, E-way bill and tax officer will come face to face at two times. First, they will check the consignment on the roads at the time of transportation and second, at the time of assessment, the tax officer will check the documents i.e, e-way bill. Where any contravention found, the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure. Unlawful acts of Consignor, consignee, transporter or tax officer may lead to corruption on the road.
Arjuna: Krishna, what lesson the taxpayer should take from this?
Krishna: Arjuna, The E-way bill is starting from 1st February. The Sankrant will come on transporter. Transporter is an important link between consignor, consignee and transportation. If the transporter make any wrong things, then the consignor and consignee will be found in difficulty. Therefore, the transporter should  transport the  goods compliancing with the GST provisions


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