Way Bill under GST

Electronic Way Bill

1. Information to be furnished prior to commencement of movement of goods and generation of e-way bill

(1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees —

(i) in relation to a supply; or

(ii) for reasons other than supply; or

(iii) due to inward supply from an unregistered person,

shall, before the commencement of movement, furnish information relating to the said goods in Part A of FORM GST INS-01, electronically, on the common portal and

(a) where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one, the said person or the recipient may generate the e-way bill in FORM GST INS-1 electronically on the common portal after furnishing information in Part B of FORM GST INS-01; or

(b) where the e-way bill is not generated under clause (a) and the goods are handed over to a transporter, the registered person shall furnish the information relating to the transporter in Part B of FORM GST INS-01 on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST INS-01:

Provided that the registered person or, as the case may be, the transporter may, at his option, generate and carry the e-way bill even if the value of the consignment is less than fifty thousand rupees.

Provided further that where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the e-way bill in FORM GST INS-01 on the common portal in the manner prescribed in this rule.

Explanation. - For the purposes of this sub-rule, where the goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of movement of goods.

(2) 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. 2

(3) Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, generate a new e-way bill on the common portal in FORM GST INS-01 specifying therein the mode of transport.

(4) Where multiple consignments are intended to be transported in one conveyance, the transporter shall indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST INS-02 shall be generated by him on the common portal prior to the movement of goods:

Provided that where the consignor has not generated FORM GST INS-01 in accordance with provisions of sub-rule (1) and the value of goods carried in the conveyance is more than fifty thousand rupees, the transporter shall generate FORM GST INS-01 on the basis of invoice or bill of supply or delivery challan, as the case may be, and also generate a consolidated e-way bill in FORM GST INS-02 on the common portal prior to the movement of goods.

(5) The information furnished in Part A of FORM GST INS-01 shall be made available to the registered supplier on the common portal who may utilize the same for furnishing details in FORM GSTR-1:

Provided that when information has been furnished by an unregistered supplier in FORM GST INS-01, he shall be informed electronically, if the mobile number or the e mail is available.

(6) Where an e-way bill has been generated under this rule, but goods are either not being transported or are not being transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, within 24 hours of generation of the e-way bill:

Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 3.

(7) An e-way bill or a consolidated e-way bill generated under this rule shall be valid for the period as mentioned in column (3) of the Table below from the relevant date, for the distance the goods have to be transported, as mentioned in column (2):

Table

Sr. no.	Distance	Validity period
(1)	(2)	(3)
1.	Less than 100 km	One day
2.	100 km or more but less than 300km	Three days
3.	300 km or more but less than 500km	Five days
4.	500 km or more but less than 1000km	Ten days
5.	1000 km or more	Fifteen days

Provided that the Commissioner may, by notification, extend the validity period of the e-way bill for certain categories of goods as may be specified therein.

Explanation.— For the purposes of this rule, the “relevant date” shall mean the date on which the e-way bill has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated. (8) The details of e-way bill generated under sub-rule (1) shall be made available to the recipient, if registered, on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the e-way bill. (9) Where the recipient referred to in sub-rule (8) does not communicate his acceptance or rejection within seventy-two hours of the details being made available to him on the common portal, it shall be deemed that he has accepted the said details. (10) The e-way bill generated under rule 1 of the CGST rules or GST rules of any other State shall be valid in the State. Explanation. - The facility of generation and cancellation of the e-way bill may also be made available through SMS. 2. Documents and devices to be carried by a person-in-charge of a conveyance (1) The person in charge of a conveyance shall carry — (a) the invoice or bill of supply or delivery challan, as the case may be; and (b) 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 in such manner as may be notified by the Commissioner. (2) A registered person may obtain an Invoice Reference Number from the common portal by uploading, on the said portal, a tax invoice issued by him in FORM GST INV-1, and produce the same for verification by the proper officer in lieu of the tax invoice and such number shall be valid for a period of thirty days from the date of uploading. (3) Where the registered person uploads the invoice under sub-rule (1), the information in Part A of FORM GST INS-01 shall be auto-populated by the common portal on the basis of the information furnished in FORM GST INV-1. (4) The Commissioner may, by notification, require a class of transporters to obtain a unique RFID and get the said device embedded on to the conveyance and map the e-way bill to the RFID prior to the movement of goods: (5) Notwithstanding anything contained clause (b) of sub-rule (1), where circumstances so warrant, the Commissioner may, by notification, require the person-in-charge of conveyance to carry the following documents instead of the e-way bill: (a) tax invoice or bill of supply or bill of entry; or (b) a delivery challan, where the goods are transported other than by way of supply. 4 3. Verification of documents and conveyances (1) The Commissioner or an officer empowered by him in this behalf may authorise the proper officer to intercept any conveyance to verify the e-way bill or the e-way bill number in physical form for all inter-State and intra-State movement of goods. (2) The Commissioner shall get RFID readers installed at places where verification of movement of goods is required to be carried out and verification of movement of vehicles shall be done through such RFID readers where the e-way bill has been mapped with RFID. (3) Physical verification of conveyances shall be carried out by the proper officer as authorized by the Commissioner or an officer empowered by him in this behalf: Provided that on receipt of specific information of evasion of tax, physical verification of a specific conveyance can also be carried out by any officer after obtaining necessary approval of the Commissioner or an officer authorized by him in this behalf. 4. Inspection and verification of goods (1) A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST INS - 03 within twenty-four hours of inspection and the final report in Part B of FORM GST INS - 03 shall be recorded within three days of the inspection. (2) Where the physical verification of goods being transported on any conveyance has been done during transit at one place within the State or in any other State, no further physical verification of the said conveyance shall be carried out again in the State, unless specific information relating to evasion of tax is made available subsequently. 5. Facility for uploading information regarding detention of vehicle Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in FORM GST INS- 04 on the common portal

Returns under GST

A return is a statement of specified particulars relating to business activity undertaken by the taxable person during a prescribed period. Return is a very critical aspect of any tax administration since it is the formal mode for submission of information important for administration of tax in a structured and time bound manner. Return provides a framework for working out the tax that become payable in the prescribed period applying the legal principles laid down in the tax law to the transaction during the period. A taxable person has a legal obligation:

(i) To declare his tax liability for a given period in the return;
(ii) Furnish about the taxes paid in accordance with that of return;
(iii) File correct and complete return within stipulated time frame.


The submission and processing of return is an important link between the taxpayer and tax administration as it is an important tool for:

(i) Compliance verification program of tax administration
(ii) Providing necessary inputs for taking policy decision
(iii) Management of audit and anti- evasion programs of tax administration
(iv) Finalization of the tax liabilities of the taxpayer within stipulated period of limitation


GST is a self assessed destination based taxation system. It is a transaction based tax and the unit for calculation of tax liability is individual transaction, both outward as well as inward. This document explains the legal provisions with respect to returns , the underlying principles and processes involved. Returns in GST are totally electronic without any requirement of physical submission. The efforts has been to make it as transaction based as possible so that once the tax payer gives the details of transactions, most part of the return is auto generated from details of underlying individual transactions. There shall be one common retrun for IGST, CGST and SGST that shall be submitted on the GST common portal and tax departments will pull the return data relevant to them from the portal for further processing and analysis.



Periodicity of Return Filing

Common periodicity of returns for a class of taxpayer is enforced.There is different frequency for filing of returns for different class of taxpayer, after payment of due tax, either prior to or at the time of filing return.The return can be filed without payment of self assessed tax as per the return but such return would be treated as an invalid return and would not taken into consideration for matching of invoices and for inter governmental fund statement among states and the center. The periodicity of return for different categories of tax payer is as follows:

1. GSTR 1        It is used for outward supplies made by taxpayer(other than compounding taxpayer
                         and input service distributor . To be filed by 10th of next month
2.GSTR 2        It is used for inward supplies received by a taxpayer ( other than compounding
                         taxpayer and ISD)  .To be filed 15th of the next month  
3. GSTR 3       Monthly return (other than compounding taxpayer and ISD). 20th of next month
4. GSTR 4       Quarterly return for compounding taxpayer  . To be filed 18th of the month next to
                         quarter
5. GSTR 5      Periodic return by Non- Resident Foreign Taxpayer. To be filed within seven days from
                       last day of registration.
6. GSTR 6      Returns for Input Service Distributor. To be 13th of the next month
7. GSTR 7      Returns for Tax Deducted at source. To be filed 10th of next month
8. GSTR 8      E commerce Operator. To be filed 10th of next month
9. GSTR 9      Annual Return. To be filed by 31 December of next FY
10. GSTR 10  Final Return . To be filed 3 months from the date of cancellation

Other Important Points relating to periodicity of return filing

 to be continued.......................

TDS UNDER GST

Tax Deduction at Source (TDS) is a system, initially introduced by the Income Tax Department. It is one of the modes/methods to collect tax, under which, certain percentage of amount is deducted by a recipient at the time of making payment to the supplier. It is similar to “pay as you earn” scheme also known as Withholding Tax, in many other countries. It facilitates sharing of responsibility of tax collection between the deductor and the tax administration. It also ensures regular inflow of cash resources to the Government. It acts as a powerful instrument to prevent tax evasion and expands the tax net, as it provides for the creation of an audit trail. Under the GST regime, section 51 of the CGST Act, 2017 prescribes the authority and procedure for ‘Tax Deduction at Source’. The government may order the following persons (the deductor) to deduct tax at source:

(a) A department or an establishment of the Central

Government or State Government; or

(b) Local authority; or

(c) Governmental agencies; or

(d) Such persons or category of persons as

may be notified by the Government on the

recommendations of the Council.

The tax would be deducted @1% of the payment made to the supplier (the deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh fifty thousand rupees (excluding the amount of Central tax, State tax, Union Territory tax, Integrated tax and cess indicated in the invoice). Thus, individual supplies may be less than Rs. 2,50,000/-, but if contract value is more than Rs. 2,50,000/-, TDS will have to be deducted. However, no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory, which is different from the State, or as the case may be, Union Territory of registration of the recipient. The earlier statement can be explained in the following situations:

(a) Supplier, place of supply and recipient are in the same state. It would be intra-State supply and TDS (Central plus State tax) shall be deducted. It would be possible for the supplier (i.e. the deductee) to take credit of TDS in his electronic cash ledger.

(b) Supplier as well as the place of supply are in different states. In such cases, Integrated tax would be levied. TDS to be deducted would be TDS (Integrated tax) and it would be possible for the supplier (i.e. the deductee) to take credit of TDS in his electronic cash ledger.

(c) Supplier as well as the place of supply are in State A and the recipient is located in State B. The supply would be intra-State supply and Central tax and State tax would be levied. In such case, transfer of TDS (Central tax + State tax of State B) to the cash ledger of the supplier (Central tax + State tax of State A) would be difficult. So in such cases, TDS would not be deducted. Thus, when both the supplier as well as the place of supply are different from that of the recipient, no tax deduction at source would be made.

Registration of TDS deductors: A TDS deductor has to compulsorily register without any threshold limit. The deductor has a privilege of obtaining registration under GST without requiring PAN. He can obtain registration using his Tax Deduction and Collection Account Number (TAN) issued under the Income Tax Act, 1961.

Deposit of TDS with the Government: The amount of tax deducted at source should be deposited to the Government account by the deductor by 10th of the succeeding month. The deductor would be liable to pay interest if the tax deducted is not deposited within the prescribed time limit.

TDS Certificate: A TDS certificate is required to be issued by deductor (the person who is deducting tax) in Form GSTR-7A to the deductee (the supplier from whose payment TDS is deducted), within 5 days of crediting the amount to the Government, failing which the deductor would be liable to pay a late fee of Rs. 100/- per day from the expiry of the 5th day till the certificate is issued. This late fee would not be more than Rs. 5000/-. For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the Central tax, State tax, Union territory tax, Integrated tax and cess indicated in the invoice. For instance, suppose a supplier makes a supply worth Rs. 1000/- to a recipient and the GST @ rate of 18% is required to be paid. The recipient, while making the payment of Rs. 1000/- to the supplier, shall deduct 1% viz Rs. 10/- as TDS. The value for TDS purpose shall not include 18% GST. The TDS, so deducted, shall be deposited in the account of Government by 10^th of the succeeding month. The TDS so deposited in the Government account shall be reflected in the electronic cash ledger of the supplier (i.e. deductee) who would be able to use the same for payment of tax or any other amount. The purpose of TDS is just to enable the Government to have a trail of transactions and to monitor and verify the compliances.

TDS Return: The deductor is also required to file a return in Form GSTR-7 within 10 days from the end of the month. If the supplier is unregistered, name of the supplier rather than GSTIN shall be mentioned in the return. The details of tax deducted at source furnished by the deductor in FORM GSTR-7 shall be made available to each of the suppliers in Part C of FORM GSTR-2A electronically through the Common Portal and the said supplier may include the same in FORM GSTR-2. The amounts deducted by the deductor get reflected in the GSTR-2 of the supplier (deductee). Thesupplier can take this amount as credit in his electronic cash register and use the same for payment of tax or any other liability. Consequences of not complying with TDS provisions:

Sr. no	Event	Consequences
1	TDS not Deducted	Interest to be paid along with the TDS amount; else the amount shall be determined and recovered as per the law
2	TDS certificate not issued or delayed beyond the prescribed period of five days	Late fee of Rs. 100/- per day subject to a maximum of Rs. 5000/-
3	TDS deducted but not paid to the Government or paid later than 10th of the succeeding month	Interest to be paid along with the TDS amount; else the amount shall be determined and recovered as per the law
4	Late filing of TDS Returns	Late fee of Rs. 100/- for every day during which such failure continues, subject to a maximum amount of five thousand rupees

Any excess or erroneous amount deducted and paid to the Government account shall be dealt for refund under section 54 of the CGST Act, 2017. However, if the deducted amount is already credited to the electronic cash ledger of the supplier, the same shall not be refunded.


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GST FOR GOODS TRANSPORT AGENCY

What is a GTA?

As per  Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017, “goods transport agency” or GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.

This means, while others might also hire out vehicles for goods transportation, only those issuing a consignment note are considered as a GTA.  As per Explanation to Rule 4B, Service Tax Rules, 1994, a consignment note is a document, issued by a goods transport agency against the receipt of goods for the purpose of transport of goods by road in a goods carriage. The consignment note  is serially numbered, and contains the names of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods, place of origin and destination, and person liable for paying service tax whether consignor, consignee or the GTA .

The courts held only persons issuing consignment notes are covered within GTA. So, individual truck owners who do not book cargo and issue consignment note in normal course of business are, not GTA and accordingly, services provided by them are not liable to service tax.

Goods Transport Agency under GST

GST will not apply on transport of following goods by a goods transport agency-

1. agricultural produce
2. milk, salt and food grain including flour, pulses and rice
3. organic manure
4. newspaper or magazines registered with the Registrar of Newspapers
5. relief materials meant for victims of natural or man-made disasters
6. defence or military equipment
7. goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage is less than Rs. 1,500
8. goods, where consideration charged for transportation of all such goods for a single consignee does not exceed Rs. 750

Is a GTA liable to register?

As per Notification No. 5/2017- Central Tax dated 19/06/2017, a person who is only engaged in making supplies of taxable goods/services, where the total tax on which is liable to be paid on reverse charge basis by the recipient as the category of persons exempted from obtaining registration under GST.

Thus, a GTA does not have to register under GST if he is exclusively transporting goods even if the turnover exceeds 20 lakhs as the total tax is required to be paid by the recipient under reverse charge basis.

Reverse Charge in case of GTA

Normally a service provider is required to pay taxes, but in case a GTA provides the services to the following persons, recipient of services is required to pay GST under reverse charge (notification No. 13/2017- Central Tax (Rate) dated 28th June, 2017) :-

1. Factory registered under the Factories Act,1948
2. A society registered under the Societies Registration Act, 1860 or under any other law
3. A co-operative society established under any law
4. A person registered under GST
5. A body corporate established by or under any law; or
6. A partnership firm whether registered or not (including AOP)
7. Casual taxable person

Who will pay under Reverse Charge Basis?

As per Notification No. 13/2017- Central Tax dated 28/06/2017 the person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the receiver of service.

Payment is by sender

If the supplier of goods (consignor) pays the GTA, then the sender will be treated as the recipient. If he belongs to the category of persons above then he will pay GST on reverse charge basis

Payment by Receiver

If the liability of freight payment lies with the receiver (Consignee), then the receiver of goods will be treated as a receiver of transportation services. If he belongs to any of the above category of persons, then he will pay GST on reverse charge basis.

 Note- As per notification Notification No.8/2017-Central Tax (Rate) dated 28th June 2017, intra-State supplies of goods or services or both received by a registered person from any supplier, who is not registered, is exempted from GST if it does not exceed Rs. 5,000 in a day.

Input Tax Credit

*** Notification No. 11/2017 – Central tax (Rate) dated 28.06.2017 mentions that the restriction of ITC is only on goods or services used in supplying the GTA service.,i.e., they are referring the GTA itself. In case of reverse charge, the person paying tax is the service recipient who is not supplying the GTA service so the concern of using any inputs to supply GTA service does not arise. He is liable to pay GST only because of RCM.

So GST paid on GTA under RCM can be availed as ITC by the person paying the tax.

Place of Supply

The place of supply of services by way of transportation of goods, including by mail or courier to––

(a) a registered person, shall be the location of such person

(b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation.

Invoicing for GTA

Any GST compliant invoice of a GTA must have following details-

1. Name of the consignor and the consignee
2. Registration number of goods carriage in which the goods are transported
3. Details of goods transported
4. Gross weight of the consignment
5. Details of place of origin and destination
6. GSTIN of the person liable for paying tax whether as consigner, consignee or goods transport agency
7. Name, address and GSTIN (if applicable) of the GTA
8. Tax invoice number (it must be generated consecutively and each tax invoice will have a unique number for that financial year)
9. Date of issue
10. Description of service
11. Taxable value of supply
12. Applicable rate of GST (Rates of CGST, SGST, IGST, UTGST and cess clearly mentioned)
13. Amount of tax (With breakup of amounts of CGST, SGST, IGST, UTGST and cess)
14. Whether GST is payable on reverse charge basis
15. Signature of the supplie

Payment of Tax by a GTA

A GTA cannot enjoy any ITC on any of the inputs. So, payment of tax will be only through cash in the normal modes of card/netbanking/cash (only for taxes upto Rs.10,000)

Returns to be Filed by a GTA

If all the services of the GTA fall under RCM then a GTA is not required to register.

If a GTA registers, then it will have to file the normal 3 monthly returns – GSTR-1 (sales), GSTR-2 (purchases-no ITC available) & GSTR-3 (monthly summary & tax liability)

FAQs on GTA

Sumit hired a GTA to transport his goods. The consideration charged was Rs. 1,200.  Will Sumit pay GST?

Sumit will not pay GST under RCM as the consideration for transportation of goods on a consignment transported in a single carriage is less than Rs. 1,500.

Sumit hired a GTA to transport goods. The GTA was asked to come 2 days as Sumit would receive the goods in batches. The entire consideration was Rs. 600. Will Sumit pay GST?

Sumit will not pay GST because the consideration charged for transportation of all such goods for a single consignee does not exceed Rs. 750.

Mr. Rohit, a working professional, is moving houses and hires Pundu GTA to transport his household items. Pundu demands Rohit to pay GST under RCM as moving charges are Rs. 6,000. Rohit is confused.

Ans: Rohit is unregistered and if Pundu GTA is also unregistered under GST then, GST is not applicable.

If Pundu is registered, then it will pay GST of 5%. RCM will not apply on Rohit.

Sumit, a garments shop owner in Kolkata, hires a truck to deliver goods from wholesaler to his (Sumit’s) shop. Sumit’s turnover is less than 20 lakhs and he has not registered under GST. The GTA demands that Anand should pay tax under RCM. Anand argues that since he is not registered, he does not have to pay any GST.

Ans: Only the persons above (Notification No. 13/2017- Central Tax (Rate) dated 28th June, 2017) are required to pay GST under RCM. Unregistered dealers (Sumit) purchasing goods/services from unregistered GTA do not have to pay GST under reverse charge mechanism. If the URD hires from  a registered GTA, then the registered GTA is liable to pay GST.

So, Sumit is not liable to pay GST under RCM.

Sumit now purchases garments from Assam and pays for a truck to deliver the goods to his shop in Kolkata. The GTA says that Sumit has to register for GST as he is making an inter-state purchase as only registered dealers can have inter-state trade.

Ans: An unregistered person can make inter-state purchases. For making inter-state sales, he will have to be compulsorily registered.

Since Sumit is an unregistered dealer and the GTA is also unregistered then the concept of RCM does not arise.

The GTA is registered at Assam and its branch is collecting cash in kolkata on his behalf. Recipient of service Sumit is in kolkata. If Sumit was registered, would he have charged IGST or SGST/CGST under RCM?

If the original transporter in Assam sends the bill to Sumit, then IGST should be charged. If the branch sends the bill then SGST/CGST will apply.

Abhisek has received a one-time contract to sell garments to a dealer in Mumbai. Abhisek hires a truck to send the goods.

Since, Abhisek is not registered under GST, he cannot make any inter-state sale. To make an inter-state sale, he must register as a casual taxable person. Then when he hires a truck to send the garments, automatically he is liable to pay GST under RCM.

Neha decides to voluntarily register. He hires a truck again to transfer goods from the wholesaler to his shop. GTA asks him to pay GST on RCM as he is registered. But Anand’s view is that his turnover is still below 20 lakhs.

Ans: The threshold of turnover does not matter if a person is voluntarily registered. All provisions of GST Act will apply to a registered person. Neha is liable to pay GST under RCM.

Sumit’s turnover has increased to 54 lakhs. He wants to shift to composition scheme as he sells mainly to end consumers. But he is worried as his GTA has told him they would not deliver his goods if he is registered under composition scheme as the GTA become liable for GST.

Ans: This is a myth. Even composition dealers are liable to pay GST under RCM. Sumit will pay GST on RCM if he hires a GTA whether he is registered as a composition dealer or as a normal dealer

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