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The Electronic Way Bill (E-way bill) is a crucial component of the Goods and Services Tax (GST) regime in India. Introduced to facilitate the seamless movement of goods across state borders and to monitor the movement of goods in real-time, the E-way bill system aims to prevent tax evasion and ensure the proper documentation of goods in transit.

Introduction

An E-way bill (Form GST EWB-01) is a digital record essential for the transportation of goods exceeding a designated threshold value (INR 50,000) across state borders. It encompasses information like the nature of the goods, their quantity, value, and the points of origin and destination.

Under Rule 138 of the CGST Rules, 2017, any registered individual initiating the movement of goods, even if not necessarily due to a supply, with a consignment value exceeding Rs. 50,000, must provide the mentioned details in Part A of the e-way bill. 

Note: – However, there is no restriction on the generation of E-Way bills even if the value of the consignment is less than Rs. 50,000.

The E-Way Bill, also known as GST EWB-01, is segmented into two sections: Part A and Part B. Part A comprises details about the products, whereas Part B includes the identification number of the transporting vehicle.

In the E-Way Bill system, Part A and Part B serve distinct purposes and contain different sets of information:

Part A: Product Information

Details Included: Part A of the E-Way Bill contains information about the goods being transported.

Key Elements:
GSTIN of Recipient
Invoice or Challan Number
Invoice or Challan Date
Description of the goods
HSN (Harmonized System of Nomenclature) code of the goods
Declared value of the goods
Reason for Transportation
Place of origin of the goods
Destination of the goods

Usage: Part A is crucial for understanding the nature and specifications of the goods being transported. It is filled out by the person responsible for the movement of goods.

Part B: Vehicle Information

Details Included: Part B contains information related to the vehicle that is transporting the goods.

Key Elements:
Vehicle number (transport vehicle registration number)
Transporter ID (if applicable)

Usage: Part B is particularly relevant for tracking the vehicle and ensuring that the goods are being transported by the authorized transporter. This part is generally filled out by the person responsible for the transportation or the transporter.

In summary, while Part A focuses on the details of the goods, including their description, quantity, and value, Part B is concerned with the identification of the vehicle transporting the goods. Both parts work together to provide a comprehensive overview of the goods in transit, aiding in effective monitoring and regulation.

Common Portal for generating E-Way bill under GST

The common portal for generating E-Way Bills under the Goods and Services Tax (GST) regime is the official GST E-Way Bill portal. This portal serves as a centralized platform for businesses and individuals to create and manage electronic way bills for the movement of goods. Here are key aspects of the common portal:

Top of Form

GST E-Way Bill Portal:

• The official website for generating E-Way Bills is https://ewaybillgst.gov.in/.
• Users need to log in to the portal using their GSTIN (Goods and Services Tax Identification Number).

User Authentication:

• To use the common portal, users must authenticate themselves by providing valid GSTIN credentials.

Dashboard and Navigation:

• The portal provides a user-friendly dashboard with options to create, update, and manage E-Way Bills.
• Navigation menus and links guide users through various functionalities.

Who Should Generate the E-Way Bill

The generation of E-Way Bills is typically the responsibility of the person who is causing the movement of goods. This responsibility can fall on various parties involved in the supply chain, and the obligation to generate an E-Way Bill arises under specific circumstances. Here’s a breakdown of who should generate E-Way Bills:

Supplier/Consignor:

The supplier or consignor of goods is generally responsible for generating the E-Way Bill when the value of the consignment exceeds the prescribed threshold, which may vary across states.

The E-Way Bill includes details about the goods, such as their description, quantity, value, and place of origin.

Recipient/Consignee:

In cases where the supplier doesn’t generate the E-Way Bill, the recipient or consignee may be required to do so. This often occurs when the movement of goods is due to reasons other than a supply transaction, such as for a sales return or transfer between branches of the same business.

Transporter:

If the supplier or recipient does not generate the E-Way Bill, the transporter can take on the responsibility. Transporters are required to carry a copy of the E-Way Bill or the E-Way Bill number while transporting goods and can update vehicle details in Part B of the E-Way Bill.

Note: – Moreover, when the transportation of goods occurs within the State or Union territory and covers a distance of up to 50 kilometres from the consignor’s business location to the transporter’s business location for subsequent transportation, the supplier, recipient, or transporter, as applicable, may not be required to provide conveyance details in Part-B of FORM GST EWB-01.

Furthermore, if handicraft goods are being transported from one state to another by an individual exempted from the obligation of obtaining registration, the person in question must generate the e-way bill, regardless of the consignment’s value.

Validity of E-Way Bill

The validity of the e-way bill commences upon the initial entry recorded in Part-B, which is the first instance of vehicle entry for road transportation or the first transport document number entry for rail/air/ship transportation, whichever occurs first.

The validity of the E-Way Bill depends on the Type of Transport Distance:

• Over Dimensional Cargo* One day for distances up to 20 kilometres, and subsequently, an extra day for every 20 kilometres or a fraction thereof.

• Other than Over Dimensional Cargo One day for distances up to 200 kilometres, and thereafter, an additional day for every 200 kilometres or part thereof.

*Over Dimensional Cargo refers to goods or a consignment that exceeds the standard dimensions or weight limits set for transportation as per the Centre Motor Vehicle Rules, 1989. This type of cargo is larger or heavier than the typical goods transported on the roads, and it may require special arrangements, permits, or precautions during transit.

Within the framework of a Goods and Services Tax (GST) system, Input Tax Credit (ITC) serves as a mechanism enabling businesses to offset the taxes paid on their inputs (purchases) against the taxes they accrue from their outputs (sales). However, there are certain situations in which GST input tax credit cannot be claimed for goods or services falling within the purview of Section 17(5) of the Central Goods and Services Tax Act, 2017.

Credits that are restricted or ineligible under Section 17(5):

Section 17(5) of the Central Goods and Services Tax (CGST) Act specifies certain inputs and input services on which ITC cannot be claimed. This provision outlines 11 clauses for which the claiming of Input Tax Credit (ITC) is not available.

Clause (a) of section 17(5) Conveyance & Transportation

ITC cannot be availed on vehicles acquired for the transportation of persons, including:

• Four-wheeler motorcars
• Three-wheelers or auto rickshaws
• Two-wheeler motorbikes or cycles
• Tempo Travellers (TT) or buses with a seating capacity of 13 or fewer, including the driver.
• Any other road-used vehicle.

Sub-clause (aa) of Section 17(5) specifies that input tax credit cannot be availed for the acquisition of vessels and aircraft.

However, there are exceptions to these restrictions in certain circumstances, hence in the following cases, ITC can be claimed when used for specific taxable supplies or transportation of goods such as:

• Further supply of such vehicles
• Transportation of passengers
• Imparting training on driving, flying, and navigating such vehicles.

ITC cannot be claimed in case of purchase of ships, vessels or aircraft. However, an exception is given if the buyer is involved in the business of reselling the ships, vessels or aircraft.

Sub-clause (ab) of Section 17(5) specifies the Services related to general insurance, as well as the servicing, repair, and maintenance of motor vehicles, vessels, or aircraft mentioned in clause (a) or clause (aa), are included by this provision.

Subject to the condition that input tax credit for such services will be accessible-

1. In cases where the motor vehicles, vessels, or aircraft mentioned in clause (a) or clause (aa) are employed for the designated purposes as outlined therein;
2. Where acquired by a taxable entity involved- (I) in the production of said motor vehicles, vessels, or aircraft; or (II) in providing general insurance services for such motor vehicles, vessels or aircrafts insured by him.

Clause (b) of section 17(5) Acquisition of food, catering, vehicle rental, club services, and travel

You are not eligible to avail of Input Tax Credit (ITC) on the procurement of the following:

• Expenditure incurred for outdoor catering, food, or beverages.
• Payments for health services, beauty treatment, plastic surgery, and cosmetic surgery.
• Providing vessels, aircraft, or motor vehicles for rent, lease, or hire. However, ITC claims may be permitted for exceptional cases as specified in clauses (a) and (aa) above.
• Expenditure on life insurance and health insurance.
• Costs related to obtaining club memberships or expenses for health and fitness centres.
• Expenses associated with leave, home travel concession, or travel benefits for employees on vacation.

You remain eligible to avail of Input Tax Credit (ITC) on expenses related to food, health services, renting of conveyances, and insurance if:

1. The goods or services are used by a registered person for making an outward taxable supply of the same category of goods or services or both (termed as reselling of the goods or services), or as an element of a taxable composite or mixed supply.
2. Employer is providing the facility of Membership of a club, or health and fitness centre to its employees,

• Travel benefits are extended to employees on vacation, including leave or home travel concession.

In the case of (ii) and (iii), The input tax credit for such goods or services, or both, is accessible when an employer is obligated to provide its employees under any prevailing law.

Clause (c) and (d) – Construction of Immovable Property (Other than Plant & Machinery)

A GST-registered individual is ineligible to assert Input Tax Credit (ITC) for GST paid on building construction or job work expenses, whether the buildings are intended for commercial or residential use. This restriction also encompasses any GST paid on construction materials.

ITC cannot be claimed for renovation or repair expenses related to buildings, provided they are capitalized in the accounts.

Nevertheless, construction companies, builders, and promoters engaged in the resale of such constructed buildings are permitted to claim ITC on the mentioned expenses. Additionally, ITC remains applicable for the purchase or construction of plants or machinery.

Clause (e) – Composition Scheme

Businesses registered under the composition scheme are not eligible to claim ITC. Section 10 requires that a composition taxpayer is not eligible to avail of Input Tax Credit (ITC) on GST paid for purchases since they are taxed based on their quarterly turnover. Correspondingly, Section 17(5) of the CGST Act specifies that ITC is not accessible for composition-taxable individuals, irrespective of whether they supply goods or services.

Clause (f) – Non-Resident Taxable Person

A non-resident taxable person is required to prepay taxes. They have the option to seek Input Tax Credit (ITC) for Integrated Goods and Services Tax (IGST) paid on imported goods but are ineligible to claim ITC for any other domestic purchases.

Clause (g) – Personal Use

Claiming Input Tax Credit (ITC) is not permitted for purchases intended for personal use instead of business purposes. In instances where purchases are utilized both for business and personal purposes, the Input Tax Credit will only be granted for the portion used in business, employing the common credit formula

Clause (h) – Free Samples or Gifts

Input Tax Credit (ITC) cannot be claimed if acquired goods are lost, stolen, damaged, written off, or provided as free samples or gifts.

Clause (i) – Fraudulent case of Input Tax Credit

Input Tax Credit (ITC) cannot be asserted for taxes paid in the following circumstances:

• Previous instances of non-payment or underpayment of tax,
• Overpayment of tax leading to excess refunds,
• Fraudulent utilization or availing of excess ITC,
• Wilful misstatements or suppression of facts,
• Confiscation of goods and seizure.

Businesses must have robust systems and processes in place to ensure accurate and compliant claiming of Input Tax Credit. Regular internal audits, adherence to tax regulations, and staying informed about changes in tax laws can help mitigate the risks associated with ineligible ITC claims. Our tax professionals help you to ensure compliance with tax laws and regulations and mitigate the risks associated with non-compliance.

GSTR-9 is an annual return form that is required to be filed by regular taxpayers registered under the Goods and Services Tax (GST) regime in India. This return provides a comprehensive summary of all the monthly or quarterly returns filed during the entire financial year.

There are different forms of GSTR-9 based on the type of taxpayer. The main form is GSTR-9, but there are also other variations like GSTR-9A for composition scheme dealers and GSTR-9C for taxpayers whose annual turnover exceeds a specified limit, requiring them to get their accounts audited.

GSTR-9 requires reconciliation with the audited annual financial statements of the taxpayer. This ensures consistency between the financial records and the GST returns filed.

Criteria for filing GSTR-9 forms

GSTR-9: – Every person registered under the regular GST scheme is required to file GSTR-9 if  their turnover exceeds INR 2 Crores.

GSTR-9A: – Every person registered under the composition scheme is required to file form GSTR-9A for each financial year.

GSTR-9C: – Every GST registered person whose turnover exceeds INR 5 crores in a particular financial year.

The due date for filing the GSTR-9 forms: – 31st December of the succeeding financial year or as extended by government notification from time to time.

Filing of Nil GSTR-9: – A person is required to file NIL GSTR-9, If

• Not made any outward supply of goods/services.
• Not received any supply of goods/services.
• Not claiming any credit.
• Not claiming any refund.
• No other liability is pending.
• No pending litigation.

Exemption for filing GSTR-9 form: The following are the persons exempted from filing GSTR-9 and  GSTR-9C respectively

• Taxpayers having turnover up to INR 2 Crores for a particular financial year are exempt from GSTR-9.
• Taxpayers having turnover up to INR 5 Crores for a particular financial year are exempt from GSTR-9C.
• Casual Taxable Person
• Input Service Distributor
• Non-Resident Taxpayers.
• OIDAR Services Providers.

Where to file GSTR-9: – Log in to the portal at https://www.gst.gov.in/ (Go to Services> Returns>Annual Return)

Late Fee and Penalties for delayed/non-filing of GSTR-9

• Late fee for filing of GSTR-9 after due date: – 200 per day (CGST Rs 100/- and SGST Rs 100/-) Maximum Rs. 5000 OR One-Fourth of the  Total Turnover, whichever is less.

• Late fee for delayed filing of GSTR-9 on interstate supplies: – 200 per day.

• Late fee for delayed filing of Nil GSTR-9: – 100 per day (CGST Rs. 50/- and SGST Rs. 50/-)

• Late fee for Non-filing of GSTR-9: – 200 per day (CGST Rs 100/- and SGST Rs 100/-) Maximum ½ of the taxpayer’s turnover in the state or union territory

It’s important to note that GST regulations are subject to changes, and there might be updates to forms and procedures. Our tax experts assist you in staying informed about the most recent guidelines and notifications issued by the Goods and Services Tax Network (GSTN).