Everything you need to know about the recent amendments in the E-way Bill system 2018

e-way-bill

E-Way (Electronic way) bill is a document required to be carried by a person in charge of the conveyance carrying any goods of value for more than Rs. 50,000.  It was introduced earlier this year with an aim to make the interstate movement of goods smoother, swifter and easier. An E-Way bill is created via  GST common portal for E-Way bill system.

E-way Bill needs to be generated in relation to the following given transactions:

  • Movement of goods in relation to their supply for a consideration
  • Movement of goods for some reason apart from the supply of goods, e.g., sales returns or movement for repair of goods, free of cost supplies, etc.
  • Domestic acquisition of goods from an unregistered person.
  • Import of goods from outside India.

Pincode Based State Validation.

The user has to enter the input based on the Pin Code and the E-Way Bill system will auto-populates the state.  If the pin code has reference to multiple states then the taxpayers can select the suitable state by clicking.

Real-Time GST Rate Validation

Now, we have an error-free system which will auto validate tax rates entered by the user. Though it is not mandatory for the system user to feed tax rates if they do so then the system will cross check with standard rates which are fixed by the GST Council.

CGST (%) SGST (%) IGST (%) CESS-Advol (%) CESS-Non-Advol. (Rs.)
0 0 0 0 or 1 or 3 or 5 0
or 11 or 12 or
12.5 or 15 or 17
0.05 0.05 0.1 or 21 or 22 or 36 400
0.125 0.125 0.25 or 49 or 60 or 61 2076
1.5 1.5 3 or 65 or 71 or 72 2747
2.5 2.5 5 or 89 or 96 or 3668
6 6 12 142 or 160 or 4006
9 9 18 204 or 249 4170
14 14 28 400

Validation of Supply Type with Document Type

A consignee needs to carry proper documents of supply of goods for a stress-free transportation. The E-way Bill contains the fields to select document types and the taxpayer can enter the type of suppliers and buyers involved. In case the bill is being generated by consignees columns related to ‘From GSTIN (Supplier)’ and ‘To GSTIN (Buyer)’ validations will change accordingly.

Transaction Type Transaction Sub-Type Document Type From GSTIN (Supplier) To GSTIN

(Buyer)

Outward Supply Tax Invoice Self Other GSTIN/URP
Bill of Supply Self Other GSTIN/URP
Export Tax Invoice Self URP
Bill of Supply Self URP
Job Work Delivery Challan Self Other GSTIN/URP
SKD/CKD Tax Invoice Self Other GSTIN/URP
Bill of Supply Self Other GSTIN/URP
Delivery Challan Self Other GSTIN/URP
Recipient not Known Delivery Challan Self Self
Others Self Self
For Own Use Delivery Challan Self Self
Exhibition or Fairs Delivery Challan Self Self
Line Sales Delivery Challan Self Self
Others Delivery Challan Self Self/Other
Others Self Self/Other
Inward Supply Tax Invoice Other GSTIN/URP Self
Bill of Supply Other GSTIN/URP Self
Import Bill of Entry URP Self
SKD/CKD Bill of Entry URP Self
Tax Invoice Other GSTIN/URP Self
Bill of Supply Other GSTIN/URP Self
Delivery Challan Other GSTIN/URP Self
Job Work Return Delivery Challan Other GSTIN/URP Self
Sales Return Delivery Challan Other GSTIN/URP Self
Exhibition or fairs Delivery Challan Self Self
For Own Use Delivery Challan Self Self
Others Delivery Challan Self/Other Self
Others Self/Other Self

The movement to Transporter’s place

If a consignment has multiple legs supplier then he will need to input details of the first leg of movement only. Unlike the present practice, the supplier does not have to fill Part-B details. The consignment legality and movement for the remaining leg of the journey would be considered valid.

 Automatic Distance calculation between Consignor and consignee

Your E-way Bill will auto calculate the distance (in KMs) between source PIN code and destination PIN code. This process will make your data entry easier as it will auto-populated on the entry of source PIN code and destination PIN code.

One E–waybill for One Invoice Number

Your E-way Bill System will also check and alert you against multiple E-way Bill generations for a single invoice number. The consignor would be permitted to carry with the multiple e-way bills practice if and only if original invoice with the correct number is available and validated.

Bill To– Ship To’ Transactions

Now, E-way Bill System will auto capture details of Bill To – Ship To’ Transactions. These are those transactions where the invoice and the consignment are shipped to two different entities. The person who receives the invoice from the supplier then sales the product/consignment to a third party further gets it delivered from the supplier itself.

Category:

  • Regular OR Bill to –Ship To OR Bill From – Dispatch From OR Both
  • GSTIN and Name of Dispatching Party, if a category is ‘Bill From – Dispatch From’ or ‘Both’
  • GSTIN and Name of Shipping Party, if a category is ‘Bill to – Ship to’ or ‘Both’

Mandatory GSTR-1 data for users of API and Offline (Excel) tool

Post the upgrade, it will be compulsory for those who use API and other Offline tools to include information related to Form GSTR-1 with the E-way bill basic data to produce e-way bills.

Hence, we need to implement technology-based solutions to manage our compliance with E-way Bill to mandate our business. This will make everyone aware of the importance of putting such solutions in place for organizations and that doing so will significantly enhance the efficiency of our operations.  Our business needs to closely monitor new developments in the E-way Bill compliance process and quickly adapt to changing requirements.

All you need to know about the proposed changes in the Single Return Forms under GST

A recent GST Council meeting was all about discussions on providing a more simplified set of return forms. The new layouts for GST Return Forms have now been approved by the Central Government and by the GST Council. From FY 2019 these new set of GST return forms will be applicable.

GST Return

Here are some of the key changes that will be the part of the new GST Return Forms:

  • Single, Simpler and Time Saving

Unlike the previous ones, now the new forms will be less prone to human error and also a simpler form structure comprising of at max 5 to 6 tables. 80% of the form will be auto-populated and this will include sections such as details of supply and purchase/input details. Further, the information will be auto-populated based on the invoices uploaded by the taxpayers. Moreover, most of the data will be auto fetched and dealers will be required to fill the remaining 20% details only.

  • Less Taxing

Across the country taxpayer and trader, the community has a common complaint that the tax filing procedure in itself taxing. To fill returns it required an internet connection and also a desktop or laptop system which ultimately increases the expenditures for traders and taxpayers of buying system, electricity, internet connection and maybe manpower (if needed). But not any longer now A welcome change is seen in a new return filing method through SMS and will the facility to allow taxpayers to file their GST returns through SMS will begin.

  • One Nation One Return Form

The good news is that from next FY onwards the Central Government will do away with the existing multiple returns with a single return filing. Currently, the list of mandatory return file forms under GST include the likes of GSTR-1, GSTR-3B, GSTR-2A (for reconciliation purpose), etc. All these will be replaced with one. While earlier India’s PPP makes it difficult to implement a true one nation One Tax structure, a lot of hue and cry was directed towards the excessive compliance burden the GST framework imposed on the taxpayers (especially honest taxpayers and medium to small-scale traders).

  • Amendments

Unlike the current forms, the new single form will also enable amendments. The maximum number of amendments/changes that can be made will be limited to two though. Additionally, taxpayers will also be able to report negative balance or liability.

  • Profile Based Return Filing

The new FY 2019 will also see profile-based dealer’s filing of returns. The profile could be selected based on the questionnaire filled by the dealer post which returns can be files
“upload – lock – pay” System

Experts call the new returns as a three-step procedure for easy hassle free cost effective return filing. These include:

  • Invoice Uploading by Suppliers (Provide return details)
  • Approval/Acceptance by Recipients of goods or service.
  • GST Payment post return locks by Recipients

sugam sahaj gst return filing

The GST will also make room for new provisions like the Sahaj and Sugam schemes for dealer along with new return forms. Currently, dealers with an annual turnover of fewer than 5 crores file quarterly returns and such dealers can either continue with quarterly returns or they can opt for a simpler two return system which is Sahaj return and another one is Sugam return.

Sajah return is for B2C suppliers. With less number of fields and easy to file it has become much simpler. It will be filed monthly. For those who are involved in both B2B and B2C supplies, they can opt for Sugam. Rest of the process is the same. The Sajah and Sugam are only available to dealers with less than 5 crore turnover.

Key outcomes of the 28th GST Council Meeting

Held on 21st July 2018, the all-powerful 28th GST Council Meeting was headed by the Hon’bleUnion Finance Minister Mr.PiyushGoyalwith an agenda:

  • To review the rates on the basis of representation made by the Industries and Trade Enterprises
  • To simplify the GST return filing
  • Discuss bringing-on the Aviation Turbine Fuel and natural gas under GST net

There have been many other GST council meets, but this one was in particular important because of the GST slab rate adjustments and few other compliance-related issues which will be on the cards during the discussion. Few other points why this meeting was important was because of the discussion on:

  • To reduce tax rates on close to 30 items and simplify return forms
  • To simplify compliance-related norms
  • To discuss the three-bench National GST Appellate Tribunal
  • To discuss the key issues on the e-way bill and reverse the charge mechanism
  • To talk over the sugar cess issue

GST Council

Key takeaways from the meeting:

Items that come under GST exemption

Milk
Sanitary Pads
Raw materials used in brooms
Commemorative coins circulated by the government
Saal leaves
Deities made of marble, stone, or wood

Items under 12% to 5% GST rates

Fertilizer grade phosphoric acid
Handloom Dari

Items under 18% to 5% GST rates

Footwear below 1000 INR

Items under 28% to 18% GST rates

  • Lithium-ion batteries, Bamboo Flooring, Paint, Varnishes, Putty, wooden frames for painting, photographs, mirrors
  • Food grinders, juicer, mixers, Vaccum cleaners
  • Perfumes, Cosmetics, Scents
  • Shaver’s, Hair Clippers, Hand Dryers, Toilet Spray, Hair Curlers
  • Trailers, Special Purpose Vehicle, Work Truck, Concrete Mixer
  • Storage water heaters, Watercooler, Ice cream freezer, Electric smoothing irons, Refrigerators, Washing Machines, TV (up to 68 cm i.e. 27 inches)

Certain transactions to be treated as no supply

The following transactions to be treated as no supply (no tax payable) under Schedule III:

  • Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
  • Supply of warehoused goods to any person before clearance for home consumption;
  • Supply of goods in case of high sea sales.

Issuing credit/debit notes

Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a financial year.

j) The cap on the amount payable for filing the appeal

Reversal of ITC

In case the recipient fails to pay the due amount to the supplier within 180 days from the date of issue of invoice, the input tax credit availed by the recipient will be reversed, but the liability to pay interest is being done away with.

These recommendations will now be placed before the Parliament and the legislature of State and Union territories for approval and amending relevant GST Acts.

The new model proposes uploading of invoices by the supplier before 10th of next month that shall be subsequently posted in the viewing facility of the buyer by 12th of next month, who will then lock those invoices. The new returns filing model proposes single monthly return for all taxpayers except composition dealers, TDS/TCS and staggered return filing dates based on the turnover of the registered person.

Other major changes:

  • Simpler GST return filings
  • For almost 93% traders or SME’s with up to 5 crore turnover – fillings would be quarterly instead of monthly. However, tax payment would be monthly
  • Exemption limit of 10 Lac increased to 10 Lac for traders in – Sikkim, Assam, Himachal Pradesh and Arunachal Pradesh
  • Also, taxpayers who still haven’t registered under GST will be given an extension up till 31st August 2018 and any late penalty would be waived off.
  • Input credit for fabric allowed in the textile industry
  • Relief for hotel industry as the 28% GST would not apply on tariffs less than Rs. 7,500 even though the printed rates are more.

27th GST Council Meeting Updates Highlights

On 4th May 2018, Goods and Service Tax Council (GST Council) in its 27th GST Council Meeting finally approved the filling of new return based on the recommendations of the Group of Ministers on IT. Along with that it also announced a few rate changes and some structural changes in the shareholding pattern on the GSTN.

27th GST Council Meeting Latest GST Updates

The key feature of new return is as under:

  • Periodicity: Under the new regime, a single return will be filed by every taxpayer, except few like composition dealer, on monthly basis unlike multiple returns filing under the existing system. Due date of return filing will depend upon turnover. A dealer with nil transaction may file a quarterly return.
  • Under the new system, uploading of invoices will be unidirectional by the seller. Seller may upload such invoice at any time during the month and such invoice will be available to the buyer on a real-time basis. Buyer will not be required to upload purchase invoices separately. HSN of 4 digits or more will be required on all B2B invoices to achieve uniformity.
  • Simplified return: The system will automatically compute GST liability based on the uploaded sales details and it will also automatically calculate Input tax credit based on sales invoice uploaded by the supplier.
  • To control misuse of Input Tax credit, person defaulted in payment of GST will not be allowed to upload sales invoice and accordingly, no credit will be available to the buyer on purchases made from such supplier.

Transition to new GST return will be in 3 stages:

Stage-1: will be the present system of filing of GSTR-1 and GSTR 3B. GSTR-2 and GSTR-3 will continue to suspend. This stage will continue for not more than 6 months.

Stage-2: The new return will have an invoice wise sales uploading facility will be available; however, input tax credit will be available on a self-declaration basis. This phase will continue for next 6 months.

Stage-3: In this stage, credit will be automatically computed by the system based on invoices uploaded by the supplier and window for provisional credit will close.

Rates:

  • Sugar Cess implementation has been postponed. The government believes that for the benefit of the farmers there should be a better way to increase revenue.
  • Duties on Ethanol – Reduction in rate suggested.
  • A group of ministers is expected to work on above two mentioned points and make recommendations within two weeks.

De-Privatization of GST

With the government acquiring the remaining 51% equity currently held by the Non-Governmental Institutions so now the GSTN is a government-owned company. In future, the Central Government will hold 50% and State Governments the balance 50% of the stakeholding.

There is a scope for better employment as GSTN looks forward to recruiting more people

Incentives on digital payments

Incentives here may need more time to come in force. For the next council meet, A 5 member council will work. The cap of the incentive will be Rs. 100 per transaction and the proposal is to give a concession of 2% on GST rates that are more than 3% on B2C supplies.

Other points:

  • Real Estate/transfer of property will be included in the GST regime
  • Amendment of the ITC provision in the GST which will enable any business to take credit on any business-related expenses (employee transport etc.)
  • Exemptions for payments made by employees for the services received from the employers (e.g.: canteen services)
  • Some clarity is expected from the council which will be based on various adjudications on anti-profiteering norms under GST
  • Digital transactions will be increased by providing cash-backs, discounts, credits etc.

In short, the 27th GST Council meeting was a major game changer, as far as the simplified return filing process is concerned. Given the various initiatives discussed, proposed and finalized at the meeting, life for the business is surely bound to become simpler as far as GST compliance is concerned.

All You Want To Know About Reverse Charge under GST

GST Reverse Charge Mechanism is basically the GST which is to be paid and deposited with the Government by the recipient of goods and services and not by the supplier of Goods and services.

It is applicable on reverse charge basis for certain transactions specified by the government which means it is not applicable under normal circumstances.

What the things required under the Reverse Charge Mechanism

  • The recipient of goods/services must be registered under GST.
  • Every registered business owner should maintain accurate records of supplies that would incur the reverse charge.
  • The supplier should clearly state the invoice that the tax payable for that specific transaction is through the reverse charge. Similarly, the same should be mentioned on receipt vouchers and refunds vouchers.
  • Advance paid on supplies that incur a reverse charge is taxable under GST. The taxpayer making advance payment should pay tax on a reverse charge basis

GST Reverse Charge

Time of Supply for Reverse Charge under GST

It is very important to ascertain the time of supply as GST would be required to be deposited with the Government within 20 days from the end of the month in which the services were provided.

Time of supply in case of supply of Goods

In this, a transaction is a date on which taxes are levied upon the supplies. The time of supply would be the earliest of the following

  • Date of receipt of goods or
  • Date of payment or
  • The date straight away after 30 days from the invoice date for goods and 60 days from the invoice date for services.

Note: If none of the above applies, then it can also be the date of entry in the books of the receiver.

Example:

Suppose the time of supply in the below-mentioned case of supply of goods:

  1. Date of Receipt of Goods: 12th Oct.
  2. Date of Payment: 15th Dec.
  3. Date of Invoice: 1st Nov
  4. Date of entry in Books: 16th Oct.

Solution: the time of supply of goods, in this case, will be 12th Oct

Time of supply in case of supply of services

In case of a Reverse charge, the time of supply would be the earliest for the below mentioned:

  1. The date of payment or
  2. The date immediately after 60 days from the date of issue on the invoice by the supplier

Note: If it is not possible to determine the time of supply, the time of supply shall be the date of entry in the books of account of the recipient.

Example:

  1. Date of payment 10th Aug
  2. Date of invoice 1st June
  3. Date of entry in books of receiver 13th Aug

The Time of supply of service, in this case, will be 1st June will be considered.

An automated tool can accelerate the government’s ability to track transactions while making survival for some small businesses easy by eliminating the cost of doing business.

How to Generate E way Bills on E-WayBill System Portal?

Latest Update as per the 26th GST Council Meet held on 10th Mar 2018.

  • Inter-state execution of e-way bill to be actualized from first April 2018.
  • Intra-state usage of EWB to commence from 15th April 2018 of every a staged way. States to be partitioned into 4 parcels to execute this staged rollout.

The E-WayBill portal gives an unbroken gateway to generate eWay bills, change car wide variety at the already generated ewaybill, cancel generated ewaybills and many more…

 E-WayBill in EWB-01 may be generated by way of either of techniques:

  1. At the web
  2. Through SMS

This topic covers the step of producing the eway bills on online E-WayBills portal.

There are some pre-necessities for producing an E-WayBills:

  1. Registration on the EWB gateway.
  2. The Invoice/Bill/Challan identified with the relegation of merchandise must be close by.
  3. If transport is by road – Transporter ID or the Vehicle number.
  4. If transport is by rail, air, or ship – Transporter ID, Transport archive number, and date of the report.

Here is a grade by grade manual to Generate E-WayBill (EWB-01) online:

Step 1: Login to E-WayBill Portal.
Click on the login button to enter the Username, Password and Captcha Code then click on ‘Login’

E-WayBill Portal Login

E-WayBill Login Form

Step 2: Click on ‘Generate new’ under ‘E-WayBill’ option appearing on the left-hand side of the dashboard.

Generate New E-WayBill

Step 3: Enter the following all the fields on the screen that appears:

Ewaybill Screen

1) Transaction Type:

Select ‘Outward’ on the off chance that you are a provider of dispatch
Select ‘Internal’ on the off chance that you are a beneficiary of dispatch.

2) Sub-type: Select the significant sub-type applicable to you:

On the off chance that exchange write chose is Outward, after subtypes show up:

Ewaybill 4

On the off chance that exchange compose chose is Inward, after subtypes show up:

Ewaybill 5

3) Document Type: Select both of Bill/Invoice/challan/credit note/Bill of section or others if not Listed

4) Document No.: Enter the record/receipt number

5) Document Date: Select the date of Document or Invoice or challan.

6) From/To: Depending on whether you are a provider or a beneficiary, enter the To/From area points of interest.

Ewaybill 6

7) Item Details: Add the details of the consignment in this section:

  1. Product name
  2. Description
  3. HSN Code
  4. Quantity
  5. Unit
  6. Value/Taxable value
  7. Tax rates of CGST and SGST or IGST (in %)
  8. Tax rate of Cess, if any charged (in %)

Ewaybill 7

8) Transporter points of interest: The method of transport and the rough separation secured (in KM) should be necessarily said in this part.

Ewaybill 8

Step 4: Click on ‘Submit’. The framework approves information entered and hurls a mistake assuming any.

Something else, your demand is prepared and the E-WayBill in Form EWB-01 shape with a one of a kind 12 digit number is created.

The E-WayBill created resembles this:

Printable Ewaybill

Print and convey the EWayBill for transporting the products in the chose method of transport and the chose movement.

Latest GST Rule Updates: What Got Changed?

The nationwide goods and service tax (GST) has taken another turn in the past week. On 18th January 2018, the latest update to GST brought in an array of changes for businesses and consumers alike. The tax slabs have been revisited, along with the much-anticipated e-way bill introduction. If you are confused about the changes, read on for a clear understanding of the new updates!

GST Update 8th Jan

The primary revisions to the tax slabs are under the 5%, 12% and 18%. The updated list is as follows:

New heads under 5%:

LPG supply, all restaurants, restaurants of hotels under tariff of 7,500 INR, food parcels, transport services, tailoring services, scientific and technical instruments

New heads under 12%:

Drinking water (20l), bio-diesel, biopesticides, drip irrigation system, state-run lotteries, non-AC hotels, business class air ticket, fertilisers and work contracts

New heads under 18%:

Second-hand medium and large cars, bio-fuel powered buses, admission to theme parks, restaurants in hotels with tariff of 7,500 INR or more, telecom and IT services, branded garments and financial services, and outdoor catering

The other major updates has been the introduction of the new nationwide e-way bill system for interstate goods movement. From 1st February, 2018, interstate goods transport worth more than 50,000 INR will need to be secured by the seller through online registration. The transporter shall be required to carry a copy of the e-way bill thus generated as a proof of sale.

The positive features of the e-way bill are that these only need to be verified once, and shall be created in standard formats across all states. A seller can also issue bulk e-way bills for multiple consignments, an issue which formed much difficulty earlier. However, what many people are considering a downside is that the recipient’s acceptance is required on the e-way bill within 72 hours, making long-standing consignments an impossibility.
GST Knowledge Base: Refund Process Under GST

The e-way bill for interstate goods movement has already been rolled out on trial basis starting 16th January, 2018 to make the businesses transition smoothly, before it comes in effect starting February. The e-way bill system for intrastate goods movement is expected to get in place by 1st June, 2018 as well.

GST: A Common Man’s Guide to its Role & Impact on Everyday Life

Since its introduction, GST has brought in a variety of opinions, right from the economists and political leaders to pundits and even the common man. It has been a good five months since GST came into effect, and we even had quite a few months prior for preparation. However, the general public still does not understand GST and its tax implications across various industry sectors correctly.

This blog is conceptualized as a short guide for beginners, covering the major pain points people have, the challenges and benefits they might face, and how far will the GST impact be felt.

What is GST?

GST or Goods & Services Tax has been called one of the biggest tax reforms of the country. It has replaced all other applicable taxes, for eg., service tax, VAT, excise tax and so on, with a singular tax rate that only varies according to the industry.

Who is required to pay GST?

GST is to be paid to the government by manufacturers, sellers and service providers. It is not something that directly affects the end consumer, though it will end up getting added to the bill just as it happens currently.
GST Payment Guide

Do the GST rates vary?

GST Rates - Easy-GST

The latest update back in November 2017 has pegged the GST rates at 5%, 12%, 18% and 28%.

  • GST @ 0%: Education & Healthcare Sectors, Milk, Salt, Fresh Vegetables, Unbranded Honey & Paneer, Jaggery
  • GST @ 5%: Kerosene, Domestic LPG, Coal, Tea, Edible Vegetable Oil
  • GST @ 12%: Non-AC Restaurants, Butter, Ghee, Mobiles, Almonds, Jams & Jellies
  • GST @ 18%: Restaurants serving alcohol, Capital Goods, Industrial Intermediate Items, Computers
  • GST @ 28%: Small cars, High-end motorcycles, Consumer durables, Luxury items

How is GST going to be implemented?

A Dual GST model is currently being implemented in India. Equal percentages are collected by both, the State as well as the Center. Your usual restaurant bill would look as follows:

Amount: 1000/- INR
SGST: 9%
CGST: 9%
Net Total: 1180/- INR
There is also one more kind of GST that would only be applicable for Inter-state sales, called the IGST.

How will GST majorly impact you?

The common man would mostly end up benefitting from the new GST rates in place. The benefits would be most felt in segments such as Real Estate, Cabs, Low-tier Hotel Stays, Air Travel and Household Expenses. A small blow might be felt in other segments such as Luxury Goods & Holidays, Tobacco, Drinks and similar.

Change has never been an easy pill to take, especially in an economy as large and widespread as India. There already are anti-profiteering mechanisms built-in in the new GST regime, however it will definitely take some time for businesses to adjust the price hikes and control the economy from blowing up. Meanwhile, the law promises to bring much-needed transparency to taxation by leveling the state and center taxes, as well as by eradicating all of the other middle-level taxes which could be exploited.

The system is changing from a production-based to a consumption-based economy post introduction of GST. The long terms benefits include price falls, easy accessibility, growth of infrastructure and economy on large-scale levels, and much more!

Do let us know your viewpoints in the comments below on how GST is impacting you as a businessperson or a consumer over the past few months, and how you envision the new taxation laws to support Indian economy in the future.