GST E-Way : Major Relief

GST E-Way Bill: Major Relief – 8TH March 2018

The government has announced major relief in the E Way Bill Rules in its decision on 8th March 2018, with key points as below:-

E-WayBill Filing

  • Limit of Rs. 50,000/- for E Way Bill to be applied to Individual Consignment and not on the Total Value of Consignment in a Vehicle.
  • Rs. 50,000/- Limit will be calculated after reducing the value of Exempted Goods if any in an Invoice.
  • Vehicle details are not required on E Way Bill for Intra State movement of good to 50 Kms (earlier 10 Kms)
  • Job Workers can also generate E Way Bill for Inter-State movement of Goods.
  • Mandatory requirement for production of E Way Bill (wherever applicable) at the time of delivery by Railways to plug leakage from transportation through Railways.

These changes will be a major relief for E-Commerce companies, Transport Agencies, Courier Companies and Small Businesses.

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GST revenues

GST revenues: Growing uncertainty

The slow revenues of GST would mean greater government debt and, consequently, a worsening of the fiscal deficit situation. A delayed implementation of the e-way bill will allow more preparation time for companies that are already fed up with the government’s ad hoc decisions on the subject.

 

 

On the other hand, it leaves one wondering how long it will take to stabilize the GST revenue collection (taxes on goods and services). Distrustful of the decline in GST tax collections, the GST Council in December last year advanced the implementation of electronic invoices from its originally scheduled date of April 1 to February 1, 2018.

But the e-way bill portal failed the test of fire and once again, the deployment had to be deferred.
Last week, the group of ministers overseeing developments related to GST recommended that the electronic invoice for the interstate movement of goods be put into effect as of April 1 of this year.

Implementation of intrastate electronic invoices

A final decision on the date of the GST Board meeting on March 10 is likely to be made. There is still not much clarity in the implementation of intrastate electronic invoices and the invoice matching system. The revenue entry of the new fiscal regime has been below expectations so far. The official data of the GST collection for the month of January have not yet been announced.

As shown in the attached chart, there is no clear trend in GST revenue collection, which was more or less expected given the initial problems.

But the concern is that despite government efforts to close tax leaks and increase compliance, it is difficult to predict whether collections will begin to stabilize next fiscal year or so.

We reestablish our opinion that the assumptions of GST for fiscal year 201019 (budgeted estimates) are on the upper side.While we do not rule out a rise in compliance, it is unlikely that it will feed on the beginning of the year.

This will complicate the arithmetic The July-November data indicate (on a cash basis) that the monthly execution rate is around Rs940 billion and the execution rate of FY2019E is likely to be Rs1.1 billion, which implies a growth rate of around 17.4% This goal could be difficult to achieve if compliance does not resume from the beginning of the fiscal year 2019, “said a Kotak Institutional Equities report dated February 21.

GST Revenew

If GST revenues do not achieve an adequate recovery in fiscal year 19, it could mean a condemnation for the markets. The slow revenues of GST would mean greater government borrowing and, consequently, a worsening of the fiscal deficit position. This, together with high inflation, is a perfect recipe to scare the bond market and raise yields on 10-year bonds.

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In a domino effect, the Indian stock markets could see a pronounced correction. Equity analysts have reiterated the downside risks emanating from the deterioration of macros due to low GST revenues. The fate of India’s costly stock valuations now depends much more on macroeconomic conditions than the long-awaited revival of corporate profits.

E-Way Bill New Features

E-pay bill is mandatory from February 1 onwards for freight revenue of Rs 50,000.

The check posts stopped when the GST came up. Stress exemption on C on Form for Inland State sales and Stage Transfer facility without paying taxes on using an F form has been lost. The cost of inter-state sales in the GST Act and sales within the state are the same. Also, input tax credit is eligible (prior to CST credit was not available).

Important role in the GST provision

The e-wave bill plays an important role in the GST provision for preventing tax evasion. The notification issued on 29th December 2017, will be effective from February 1, 2018, as per the Central Tax Act.

The e-Way Bill website was also notified by the Notification 9/2018 (23-1-2018). The trial began on January 16. It is a 1.4 lakh e-wave (4 states) a day. The portal can handle 50 lakh bill daily.

E-vee Bill is required by the seller or buyer, if one of them has GST registration, the e-way bill is mandatory if the cost of goods is Rs 50,000.

(E-way bill should be purchased from non-GST registrations and purchase of goods for stock transfers and repair). Principal e-vee bill should be prepared if the value is less than Rs. 50,000 while the goods are sent to another state for Job Varks and sent back to work.

The e-way bill should also be made when it comes to owning a car, a railway, a plane or a cargo ship.

Take the e-money bill

Contractors, Suppliers, Vendors- Any of these can take the e-vee bill from the portal.

Form e-wave bill on Form GST E-mail should be filled before it can start rolling. The expiration of e-way bill for up to 100 km of cargo is a day. Every hundred kilometers for each subsequent day is an extra day.

If you can not move the cargo within the time limit, the e-voucher bill is invalid. Special conditions can be prepared again.

The e-way bill can also be made through Internet Mobile App. E-Vase bill can also be generated through SMS system using unregistered mobile phones. Codes and explanations for generating e-vee bill using SMS are available on the Kerala State GST website.

One needing 200-500 invoices a day for those who need an e-wake bill can also be prepared through an API interface. Bulk e-way bill generation is also designed for those with difficulties. There is a bill to cancels Bill.

There is no need to the e-way bill along with items included in Annexure under Section 138 A (14). Ie, postal baggage handled by kerosene and postal department in the LPG and PPS scheme, Pearl of 71, and other gems, stones, jewelry, currency, used appliances (kerosene and households effects) and coral.

From the port, airports, air cargo complex and customs station, you will need an inland container depot for customs clearance and the e-way bill to cargo freight stations. The e-wages are also mandatory for commodity contracts within the area notified according to state regulations.

Notification 2/2017 The tax exemptions on GST tax on central tax rate require e-waybill.

The list of 149 items includes disposal of living animals, birds, milk, eggs, fish, vegetables, fruits and vegetables. They do not need an e-way bill.

The e-laws are not applicable for alcohol, petrol, diesel, natural gas and aviation fuel. It does not apply to items not counting in CSTC III.

Vehicle number is mandatory

The vehicle number must be shown on e-way bill. But the number of cargo lower than 10 km is not mandatory.

The information on the e-pay bill prepared by the supplier can be seen on the portal to the buyer. (With registrations). You can accept or reject it properly. If not within 72 hours, the information will be considered acceptable. [(Article 138 (12)]