{"id":425,"date":"2018-03-05T09:40:49","date_gmt":"2018-03-05T09:40:49","guid":{"rendered":"http:\/\/www.classiciasacademy.com\/blog\/?p=425"},"modified":"2024-06-06T15:13:00","modified_gmt":"2024-06-06T09:43:00","slug":"complications-in-gst-and-e-way-bills","status":"publish","type":"post","link":"https:\/\/www.classiciasacademy.com\/blog\/complications-in-gst-and-e-way-bills\/","title":{"rendered":"Complications in GST and E-Way Bills"},"content":{"rendered":"<h3><\/h3>\n<h3>Complications in GST and E-Way Bills<\/h3>\n<h3>In News:<\/h3>\n<ul>\n<li>Recently GST Council decided e-way bills will be introduced in a phased manner by March 2018.<\/li>\n<\/ul>\n<h3>Background<\/h3>\n<ul>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">The e-way bill can be electronically generated (on the government portal) either by the supplier or recipient of the consignment, before the movement of goods.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">The transporter needs to carry an electronically generated way bill or a permit, with every consignment having value exceeding INR 50,000.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">The person can carry the invoice book with him and issue the invoice once the supply is delivered.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">All such supplies will be inter-state supplies and attract integrated tax in terms of Section 5 of the Integrated Goods and Services Tax Act, 2017.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">Till this completely gets implemented, the states have been allowed to follow their own way bill\/road permit system, including the ones used prior to GST.<\/span><\/span><\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">Recent decisions are based on communications received particularly from the suppliers of jewelry regarding issue of invoices when goods are sent on approval basis.<\/span><\/span><\/span><\/li>\n<\/ul>\n<h3>Complications in the Decisions<\/h3>\n<ul>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\"><b>Numerical challenge &#8211;<\/b><\/span><span style=\"color: #000000;\">Under the GST law, invoices are supposed to be serially numbered.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">If invoice books are sent through transporters, maintaining serial numbers could pose a numerical challenge during invoice uploading and subsequent assessments since one set of invoices will be at the head office and the other in a remote location.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\"><b>State taxes &#8211;<\/b><\/span><span style=\"color: #000000;\">This would create confusion when a truck starts its journey in one State, travels through three other States before completing its journey in a Union Territory.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\"><b>Approval slips &#8211;<\/b><\/span><span style=\"color: #000000;\">Complications can arise if the goods are sent on approval basis since there would be no invoice.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">The circular assumes that acceptance or rejection of goods sent on approval will be done instantaneously.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">A machining part sent by a supplier to a first time customer would take a few weeks to be approved, some parts may be approved while others rejected.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\"><b>Jewelry based &#8211;<\/b><\/span><span style=\"color: #000000;\">Clarification would be applicable to all goods supplied under similar situations, it appears that the draftsman has kept only jewelers in mind.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">To how many suppliers (apart from, maybe, jewelers) can send the invoice book along with the vehicle in which the goods are transported is not specified.<\/span><\/span><\/span><\/li>\n<\/ul>\n<h3>E-way bill<\/h3>\n<ul>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">The e-way bill can be electronically generated (on the government portal) either by the supplier or recipient of the consignment, before the movement of goods.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">The transporter needs to carry an electronically generated way bill, with every consignment having value exceeding INR 50,000.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">It may possibly subject to few exemptions such as agricultural commodities<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">There are indications that it could come into effect from October 1, 2017.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">Till then, the states have been allowed to follow their own way bill\/road permit system, including the ones used prior to GST.<\/span><\/span><\/span><\/li>\n<\/ul>\n<h3>Complexities with E-Way Bills<\/h3>\n<ul>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">The e-way bill, once generated, is valid for one day for consignment up to 100 km and then one additional day for every 100 km thereafter.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">If e-way bill is generated, but the goods are not transported then it has to be cancelled electronically.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">If the transporter transfers goods from one vehicle to another in the course of transit, then he will be required to generate a new e-way bill, before commencement of the movement.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">Transporters may be required to obtain a unique Radio Frequency Identification Device (RFID) and get it imbedded on the vehicle and map the e-way bill to the RFID prior to the movement of goods.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">It is important to note that e-way bill is required even in case of intra-state movement (beyond 10 km), which was not the case earlier.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">Also, there were many states which did not have a system of way bill or a road permit in the erstwhile regime.<\/span><\/span><\/span><\/li>\n<\/ul>\n<h3>Concerns<\/h3>\n<ul>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">The industry is sceptical that this could result in Inspector Raj and the associated corruption, which GST was otherwise supposed to eliminate.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">There is a fear that the e-way bill system could undo reduction in commodity prices<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">The GST rates are uniform across states against this backdrop, e-way bill would serve limited purpose.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">The mechanism proposed requires a certain level of maturity in terms of technology, systems and processes.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">Large proportion of transport sector is still unorganized and may not be equipped to deal with technology-led compliances.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\"><span style=\"color: #000000;\">It appears to be too stringent in terms of the reporting requirement.<\/span><\/span><\/span><\/li>\n<\/ul>\n<p style=\"text-align: left;\" align=\"JUSTIFY\"><strong>Classic IAS Academy:\u00a0<\/strong><\/p>\n<p>The Classic IAS Academy is regarded as the <a href=\"https:\/\/www.classiciasacademy.com\/best-upsc-coaching-in-delhi\"><strong>Top IAS Institute in Delhi<\/strong><\/a>. The Academy steadily works towards realizing the dreams of both the Hindi and English students to participate in the civil service examination. The Academy also conducts seminars and workshops with the help of experts in order to train the student to think, feel and express like civil servants.<\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>Complications in GST and E-Way Bills In News: Recently GST Council decided e-way bills will be introduced in a phased manner by March 2018. Background <a class=\"mh-excerpt-more\" href=\"https:\/\/www.classiciasacademy.com\/blog\/complications-in-gst-and-e-way-bills\/\" title=\"Complications in GST and E-Way Bills\">    [read more]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[15],"tags":[84],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Best IAS Coaching in delhi, Best ias Institute in delhi<\/title>\n<meta name=\"description\" content=\"Best IAS Coaching in delhi - Classic IAS Academy is the India&#039;s Best civil services coaching institute in Delhi. 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