How movement of Goods shall take place in India!

INTRODUCTION

We have reading from a long time that there will be free flow of movement of goods under GST and thousands of man hours will be saved which are currently wasted on the borders of the cities and states. Now, this thought has been converted into set of draft rules the government and the whole procedure which was only an idea before has taken a shape of reality.

The electronic way bill rules has been released by the government and you should understand these rules to continue free flow of movement of goods once GST is in place from 1st July, 2017.

WHAT IS THE CONCEPT OF ELECTRONIC WAY BILL?

Electronic way bill (or e-way bill) is the new concept that requires every registered person to furnish details online before commencement of movement of goods.

In other words, every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees –

• In relation to a supply; or
• For reason other than supply; or
• Due to inward supply from an unregistered person,

Shall furnish the information in PART A of FORM GST INS – 01 electronically before commencement of movement of goods.

The couple of points are also important in this regard:

a) If the goods are transported by the recipient of goods as the consignee, whether in his own conveyance or a hired one, then he shall generate the e-way bill by furnishing information in PART B of FORM GST INS – 01.

b) If the e-way bill is not generated and goods are handed over to the transporter, the registered person shall furnish the information relating to the transporter in PART B of FORM GST INS – 01 and the transporter shall generate e-way bill on its own.

c) If the movement of goods is caused by unregistered person either in his own conveyance or a hired one or through a transporter then he or the transporter generate the e-way bill.

d) If the goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be caused by such recipient if the recipient is known at that particular time.

THE PROCEDURE OF E-WAY BILL FOR MOVEMENT OF GOODS UNDER GST

#Step 1 – Generate e-way bill: The first step is to generate e-way bill as explained above.

#Step 2 – Generate unique e-way bill number: After generating the e-way bill, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.

#Step 3 – New E-way bill if mode of transport is changed: The transporter who is transferring goods from one conveyance to another in the course of transit shall generate a new e-way bill on the common portal. This has to be done such transfer and further movement of goods.

#Step 4 – Consolidated E-way bill for multiple consignments: 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 consignment electronically on the common portal and a consolidated e-way bill in FORM GST INS – 02.

#Step 5 – Cancellation of e-way bill: Where an e-way bill has been generated but the goods are either not being transported, the e-way bill may be cancelled electronically.

#Step 6 – Validity of e-way bill: An e-way bill or a consolidated e-way bill generated shall be valid for the following period:

Sno.	Distance	Validity Period
1.	Less than 100 km	One day
2.	100 km or more but less than 300 km	Three days
3.	300 km or more but less than 500 km	Five days
4.	500 Km or more but less than 1000 km	Ten days
5.	1000 Km or more	Fifteen Day

DOCUMENTS AND DEVICES TO BE CARRIED BY A PERSON-IN-CHARGE OF A CONVEYANCE

The person in charge of a conveyance shall carry the invoice and a copy of the e-way bill number.

Further, a registered person may obtain an invoice reference number form the common portal and produce the same for verification by the proper officer in lieu of the tax invoice which shall be valid for three years.

VERIFICATION OF DOCUMENTS AND CONVEYANCES

Any authorised officer may intercept any conveyance to verify the e-way bill number in physical form for all inter-state and intra-state movement of goods.

CONCLUSION

We have tried to explain youthe concept of the e-way billt and in case you have any query, do write to us at paras@hubco.in

Register for GST in India