GST e-way bill is compulsory for Inter-state from 1 February 2018

Government is planning for an all-India rollout of new GST E-way bill system from February 1, 2018 GST Council has decided that E-Way Bill to be made compulsory from 1st Feb., 2018 on Inter-State Supply of Goods. As of now E-way bill for inter-state movement of goods will be compulsory from 1st February 2018 and for intra-state from 1 June 2018. Let’s see below the process.

All you need to know about e-way bill implementation

GST provision want transporters to carry an electronic way bill or E-way bill when moving goods between states will be execute from February 1, 2018, to boost revenue by up to 20 per cent. After GST implementation from July 1, requirement was postponed due to an unready network. This was done even in 17 states which in pre-GST time had an electronic challan or e-way bill system.

Once e-way bill system is executed, then tax avoidance will become difficult, because government will have details of all goods in transport above value of Rs. 50, 000 and can mismatch if either supplier or purchaser does not file tax returns.

Rules for implementation of nationwide e-way bill system

Rules for implementation of nationwide e-way bill system for inter-state movement of goods with effect from February 1, 2018 and for intra-state movement form June 1, 2018.  This will bring uniformity across states for seamless inter-state movement of goods. States may choose their own timings for implementation of e-way bill for intra-state movement of goods on any date before 1st June, 2018.

There are certain states which are already having system of e-way bill for intra-state as well as inter-state movement and some of those states are early adopters of national e-way bill system for intra-state movement. But in any case uniform system of e-way bill for inter-state as well as intra-state movement will be implemented by 1st June, 2018 across country. How e-way bill can create complications for transporters

Option to exempt movement of goods within 10-km

Also, state have given option to exempt movement of goods within 10-km radius and all essential goods have been exempted from requirement of carrying e-way bill. Must Read GST rate cut 15,000 cases of MRP violations booked across India. Also see GST taxpayer division base between Center and States our post.

Beside tax evasion, e-way bill will boost revenues by 15-20 per cent. E-way bill mechanism has been introduced in GST regime to plug tax evasion loopholes. Tax avoidance was one of reasons mention by government for fall in revenue collection.  Check How GST is charged on under construction Properties.

This mechanism will not only help tax authorities monitor inter-state and intra-state movement of goods but also cut transportation time by reducing loss of time. Also read E-Way Bill under GST Rules and Compliance

E-way bill is compulsory for Inter-state from 1 February 2018

E-way bill has been run successfully in Karnataka and IT system is fully set up to meet any requirement. E-way bill is an electronic way bill for movement of goods which can be generated on GSTN. Movement of goods of more than Rs 50, 000 in value cannot be made by registered person without an e-way bill. E-way bill can generate or cancelled through SMS.

This system will become mandatory for movement of goods within states from June 1. In this month, Goods and Services Tax (GST) Council, decided to go for early implementation of e-way bill for inter-state movement of items from February 1, and uniform mandatory compliance from June one next year.

Here’s how to generate an e-way bill

To generate an e-way bill, supplier and transporter will have to upload details on GST network portal. After uploading, unique e-way bill number (EBN) will be made available to supplier, recipient and transporter on common portal. GST Council had decided that till such time as national e-way bill is ready, that states were authorized to continue their own separate e-way bill systems.

As of now each state has own E-way bill system. Hopefully things will get sorted out on decided date and confusion over E-way bill will be made away with. All documents will be applicable from April 1, 2018 on all-India basis. Read Government Norms for rectifying GST returns relaxed

Less than 10 km within state, supplier or transporter need not furnish details on portal.

Further, this is expected to help the dealers who do inter-state transactions in multiple states as the e-way bill process will now be common across states. Also Read Petroleum products could be taxed above GST. Trade and transporters can start using this system on voluntary basis from January 16.

These regulations meant to bring uniformity across States for seamless movement of goods. An e-way bill is required for movement of goods worth more than Rs 50,000. When goods are transported for less than 10 km within state, supplier or transporter need not furnish details on portal.

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