Dec 112018
 

E-way bills –detailed analysis w.r.t. generation of E – way bills

Legal background (Section 68 of CGST act and Rule 138A):

Section 68. (1) The Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to carry with him such documents and such devices as may be prescribed.

(2) The details of documents required to be carried under sub-section (1) shall be validated in such manner as may be prescribed.

(3) Where any conveyance referred to in sub-section (1) is intercepted by the proper officer at any place, he may require the person in charge of the said conveyance to produce the documents prescribed under the said sub-section and devices for verification, and the said person shall be liable to produce the documents and devices and also allow the inspection of goods.

Objective of E – way bills:

  • Basically to avoid or curb GST evasion.

Who shall generate E way bill:

Who shall generate E way bill:
1. The persons responsible to generate the e-Way bill are:
(i) The person causing movement of goods if consignment value exceeds 50,000/-:
– Ordinarily, the consignor;
– Where the consignor is not a registered person, the Consignee;
(ii) The Transporter, where an e-Way bill has not been generated as cited supra in respect of movement of goods;

2. In case of inter-State movement of goods, irrespective of the value of goods, the following persons would be responsible for raising an e-way bill:
– Principal/job worker;
– An unregistered consignor of handicraft goods for inter-State movement, who is exempt from registration under Section 24(i) and (ii);

3. The registered person can authorize a transporter or e-commerce operator or a courier agency to furnish the information in Part A of Form GST EWB-01, on behalf of the registered person.

4. Unregistered transporter can enroll on the common portal and generate e-Way bill on behalf of its customers;

5. Any Person (unregistered recipient) can enroll & generate the e-Way bill for movement of goods for his/her own use

6. Any person desirous of generating may voluntarily generate an e-Way bill even when value of consignment is lesser than 50,000 Rupees. If the goods are moved by unregistered person and handed over to the transporter for transportation of goods then either of them can generate an e-Way bill (EWB). The unregistered person can generate EWB as an unregistered person.

Practical issues relating to generation of E way bills:

Issue Solution
Sales return Either the customer or the transporter will issue the E-way bills
High seas sales Since sales is effected through documents and hence no E way bill is required to be generated.

–  Ultimate buyer will be required to generate an e-Way bill to move goods from the port to the place of business

Customer moving goods himself E-Way bill can be generated by:

–  The taxpayer or

–  Supplier based on the invoice issued to him.

–  The customer may also enrol as a citizen and generate the e-Way bill himself

The consignee or recipient refuse to take the delivery of goods Transporter can get one more e-Way bill generated with the help of the supplier/ recipient
Individual bills are less than Rs. 50,000/- but the total value of goods in a conveyance exceed Rs. 50,000/ The transporter shall be responsible / liable to raise an e-Way bill

.

Dec 102018
 

Return of time expired goods under GST

Meaning of “Expiry of time”:

For layman:

The drugs or medicines are sold by the manufacturer to the wholesaler and by the wholesaler to the retailer on the basis of an invoice/bill of supply as case may be. They have a defined life term which is referred to as the date of expiry and on crossing the date of expiry these are returned back to the manufacturer through supply chain.

Under GST:

Section 34(1) and (2) is reproduced as below:

  • Where a tax invoice has been issued for supply of any goods or services or both and
    1. The taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or
    2. Where the goods supplied are returned by the recipient, or
    3. Where goods or services or both supplied are found to be deficient,

The registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as may be prescribed.

  • Any registered person who issues a credit note in relation to a supply of goods or services or both shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than September following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be prescribed: Provided that no reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and interest on such supply has been passed on to any other person.

Implication:

There could be two cases while returning time expired goods in general trade practices:

Case 1:

Goods being return before furnishing annual return of taxable person who have supplied the goods:

  • In this case goods can be returned against credit note issued by supplier. Thus, goods will be return on the basis of delivery challan and in case value of return goods being more than Rs 50000/- E way bill shall be generated accordingly.
  • In this case full ITC needs to be reversed attributable to such goods.

Case 2: Goods being return after the expiry of above period:

  • In this case such return would be treated as fresh supply.
  • Such goods shall be accompanied by tax invoice and E way bill if required.
  • Full ITC attributable to it need not to reversed
  • GST liable to be paid based on value at the time of return.

Procedure to be followed:

Case 1:

  1. As per section 34(1) of the CGST Act, the manufacturer or the wholesaler who has supplied the goods to the wholesaler or retailer, as the case may be, has the option to issue a credit note in relation to the time expired goods returned by the wholesaler or retailer, as the case may be.
  2. If the credit note is issued within the time limit specified in section 34(2) of the CGST Act, the tax liability may be adjusted by the supplier, provided the person  returning the time expired goods has either not availed the ITC or if availed has reversed the ITC so availed against the goods being returned. However, if the time limit has expired, a credit note may still be issued but the tax liability cannot be adjusted by him in his hands
  3. Further, in case they are returned beyond the time period specified and a credit note is issued, there is no requirement to declare such credit note on the common portal by the supplier as tax liability cannot be adjusted in this case.

Case 2:

  1. Person returning the time expired goods is a registered person
    • Return of goods to be treated as fresh supply
    • Value of the said goods as shown in the invoice on the basis of which the goods were supplied earlier may be taken as the value of such return supply
    • Recipient is eligible to avail Input Tax Credit on said return supply subject to section 16 of the CGST Act.
  2. Person returning the time expired goods is a composition taxpayer
    • Return the said goods by issuing a bill of supply and pay tax at the rate applicable
    • Recipient is not eligible to avail ITC of said return supply
  3. Person returning the time expired goods is an unregistered person: Recipient may return the said goods by issuing any commercial document without charging any tax.

Where the time expired goods which have been returned by the retailer/wholesaler are destroyed by the manufacturer, he/she is required to reverse the ITC availed on the return supply in terms of section 17(5) (h) of the CGST Act. However, ITC which is required to be reversed in such scenario is the ITC availed on the return supply and not the ITC that is attributable to the manufacture of such time expired goods.

Dec 052018
 

Del-credere agent (DCA) under GST

Meaning of Del-credere agent:

It is a type of principal-agent relationship wherein the agent acts not only as a salesperson or broker for the principal, but also as a guarantor of credit extended to the buyer.

  • Where the buyer fails to make payment to the principal by the due date, DCA makes the payment to the principal on behalf of the buyer and
  • The commission paid to the DCA may be higher than that paid to a normal agent.
  • DCA in turn charges small amount of interest from the buyer with the amount of supply from supplier.
  • In some cases DCA enters into a separate agreement for extending transactional based loan to buyer.

Issue involved:

Whether valuation of supply would include amount of interest being paid by the buyer to agent for supplies made by principle?

Examination of Relevant law:

Section 7 of CGST Act read with para 3 of schedule 1: ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION:

Supply of goods—

  1. by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or
  2. by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.

Thus, if agent is working on behalf of principal then supply of goods is different from interest charged by agent from buyer and

if both agent and principal are working independently than supply of goods be agent to buyer and interest charged by him are against for one and same transaction and thus, GST would charged on combine value of amount against supplies and interest charged thereon.

Analysis of facts:

Here two scenarios are possible:

Scenario 1 Scenario 2
Where the invoice for supply of goods is issued by the supplier to the buyer:

1.     Invoice may directly issued by supplier to buyer

2.     Invoice may be passed through agent but issued by supplier

Where the invoice for supply of goods is issued by the DCA in his own name
Result of scenario
Agent is not working as DCA agent. Agent is DCA agent.
Implication on GST:
The value of interest charged by agent would be a separate transaction and GST would not be applicable on that amount as same in exempted supply. The value of the interest charged for such credit would be required to be included in the value of supply of goods by DCA to the recipient as per section 15(2)(d) of the CGST Act

Nov 222018
 

Consequences of non filing to regular return in GST

Who are non fillers for the purpose of section 62 of GST act?

A non-filer is a taxpayer who has not met his tax filing obligation by the due date of the return / statement or approved extended due date.

Non-filers and unregistered non-compliant person are normally misunderstood as one and the same but, these two persons are different. The difference is as under:

  1. An unregistered non-compliant person under GST is the person liable to apply and obtain registration but failed to do so, i.e., unregistered non – compliant person.
  2. Non-filer is a person who is already registered and is therefore liable to file the return/ statement but has failed to do so, i.e., registered non – compliant.

Thus, A Non-filer is a Registered Person liable to file the return or statement periodically but one who has failed to do so.

Assessment of non – filers under section 62 of CGST act:

Under Section 62 of the CGST Act, where a registered taxable person fails to furnish the return (non-filer), the proper officer may,

  • After allowing a period of 15 days from the date of service of the notice under 46 of the CGST Act 2017,

proceed to assess the tax liability of the person to his best judgment, taking into account all the relevant material which is either available on records or which he has gathered.

Assessment of unregistered non compliant person:

Under Section 63 of the CGST Act, where a taxable person (i.e. a person liable to take registration) fails to obtain registration, the proper officer may:

  • Decide to assess the tax liability of the said taxable person to his best judgment for the relevant tax periods, .i.e., 15 days notice period need not to be given in such cases, and
  • Issue an assessment order within a period of five years from the due date for filing of the annual return for the year to which the tax not paid relates to.

What material department would consider for making best judgment assessment?

Best Judgment Assessment are made either

  1. ex-parte or
  2. by rejecting the accounts or
  3. plea of the Registered person.

In such cases no records or documents are furnished, or claims are not substantiated. Records and evidence produced before proper officer are rejected, whether wholly or partly, due to unreliability, incorrectness or incompleteness.

In making best judgment assessment the officer does not possess arbitrary powers to assess any figure as he like. Though quasi judicial in nature these assessments are to be based on the principles of justice, equity and good conscience. In common parlance the words ‘best judgment’ carry the connotation that what is being done is in order to make an estimate.

The best judgment is made in a non-arbitrary way and the nexus seems apparent the decision is final and there is no scope for interfering with the best judgment. Thus, in a way there remains no scope for challenging a best judgment assessment. This is because an assessee cannot be allowed to take advantage of his own illegal act.

Nov 152018
 

Auidt under GST: person covered and annual return to be furnished

Meaning of Audit in GST:

The definition of Audit given in Section 2(13) of Central Goods and Services Tax Act, 2017(CGST Act) as “audit means the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made there under.”

As per Rule 80(3) of the CGST Rules “every registered person whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of the audited annual accounts and a reconciliation statement, duly certified, in GSTR 9C, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner”.

Thus, the entire compliance of GST law has to be confirmed in GST audit.

What are the outcomes of GST audit:

According to section 35(5) “every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant and shall Submit:

  • A copy of the audited annual accounts,
  • The reconciliation statement under sub-section (2) of section 44 and
  • Such other documents in such form and manner as may be prescribed”.

According to section 44(2) “every registered person who is required to get his accounts audited in accordance with section 35(5) shall furnish, electronically:

  • The annual return under sub-section (1) along with
  • A copy of the audited annual accounts and
  • A reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement, and
  • Such other particulars as may be prescribed”.

Whether for the first financial year, i.e., 2017-18, aggregate turnover of 9 months shall be taken for considering the application of audit provision to the auditee?

For the financial year 2017-18, the GST period comprises of 9 months whereas the relevant section 35(5) uses the expression financial year.

Therefore, in the absence of clarification from government, also to avoid any cases of default, it is reasonable to understand that to reckon the turnover limits prescribed for audit i.e., Rs. 2 crores one has to reckon the turnovers for the whole of the financial year which would also include the first quarter of the financial year 2017-18.

What are the documents required to be furnished annually after audit being carried out?

  1. Annual Return;
  2. Copy of the audited annual accounts;
  3. Reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement in FORM GSTR 9C, duly certified;
  4. Such other particulars, as may be prescribed
Nov 132018
 

Exemptions for charitable trust : GST

Exemptions available to charitable trust:

Exemption from Section / NN Summary of exemption
Income Tax Section 11 and Section 13 Complete exemption of income from tax net
GST NN 12/2017 Central Tax (Rate)

NN 9/2017 Integrated Tax (Rate)

Specific exemption:

1.     Health services

2.     Educational services

3.     Religious services

General exemption:

services by an entity registered under Section 12AA of the Income-tax Act, 1961 by way of charitable activities

Here an attempt being made to combined study the effect to above exemption:

  1. Since Under GST only registration under income tax enough to avail the benefit of exemption and in income tax act registration under section 12AA clubbed with certain other condition are critical requirement to avail total exemption. Hence there may be situation where income of charitable trust is taxed with no GST is payable by them.
  2. Charitable organization prior to 01/04/1997 is registered under section 12A of income tax act and hence such organization may face problem in availing exemption under GST regime.
  3. Since income tax provide exemption on assessment year basis, i.e., situation that exist at the end of relevant previous year and GST levy based on situation exist at the time of supply of services and hence there may be situation where in the same year exemption is available in GST but no exemption in income tax and vise versa. Such situation will occur on 1st year of registration or year of cancellation of registration under income tax act.
  4. Under GST regime a charitable organization should involved in charitable activity. That means a trust registered under section 12AA of income act must also engaged in charitable activities as specified in GST regime. Thus, coverage of organization under GST regime is restrictive and full of various open ended and undefined terms.

The effect of above it may be concluded that while a trust is availing benefit of income tax exemption may not avail benefit of GST exemption in certain cases. The relevant clauses are reproduce below for the sake of comparison:

Charitable activities under GST:

GST Exemption Notification in para 2 (r) defines “charitable activities” to mean activities relating to –

  • public health by way of ,-
    • care or counselling of
      • terminally ill persons or persons with severe physical or mental disability;
      • persons afflicted with HIV or AIDS; (III)persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or
    • public awareness of preventive health, family planning or prevention of HIV infection;
  • advancement of religion , spirituality or yoga
  • advancement of educational programmes or skill development relating to,-
  • abandoned, orphaned or homeless children;
  • physically or mentally abused and traumatized persons;
  • prisoners; or
  • persons over the age of 65 years residing in a rural area;
  • preservation of environment including watershed, forests and wildlife.

Aug 272018
 

Review of GST Input Tax Credit Claim

Why there is need for review of ITC claim:

Since the rules for claiming ITC are neo for everyone including tax consultants and hence it can be understood that there could be:

  • Errors of understanding,
  • System errors and
  • Transactional mistakes

Thus, for every taxable person there is last chance to ensure total reconciliation and proper availment is carryout before filing September 2018 return.

Special focus point in review of ITC claim:

  • Transaction not entered in accounting records at all:
    1. Stock transfers to different states
    2. Agent principle supply
    3. Supply to related party without consideration / inadequate consideration
    4. Liability under reverse charge
    5. Identification of Barter activities
    6. In the same line identification of non-monetary consideration in any exchange transaction, which leads to revision of valuation

Since no records for above transaction is available in normal book of accounts and accounting trail and hence special focus must be adopted on these transaction to avoid under booking and under payment of liability.

  • Review of ITC on transaction entered in books of accounts:
    1. Procurement policy to ensure that vendor had paid taxes on invoice
    2. Invoice must have properly indicated and value of taxes paid
    3. All major inputs, capital goods and services needs to be review to ensure that anything on which credit have been taken is not blocked under the act
    4. Ensure source of procurement must be from registered vendor
    5. Whether ITC is taken only after receipt of goods and /or services
    6. Whether GST liability under RCM is actually paid to avoid payment of irrevocable interest.
    7. Ensure that the tax paid on purchases returns on GST invoice is equal to credit on inputs
    8. In case of capitalization of expenses ensure whether ineligible credits exist or eligible credits are not availed
    9. Confirm whether all vendor payments being made within 180 days: There is a time limit for payment to vendors within 180- days. If it exceeds, ITC needs to be reversed with interest, however an amendment for without interest reversal has been proposed for amendment in the CGST Bill. On payment to the vendor is made, the credit can be claimed back.
    10. Review the discount given / taken and debit notes and credit notes
    11. ITC credit is not available for personal transactions
    12. Review of various returns filed under GST such as GSTR 1 and GSTR 3B and identification of differences in ITC if any, between GSTR 3B and GSTR 2A.
    13. Reivew of ratios like credit availed and utilised to total GST, ITC/ Total purchases and expenses

The above are few focus areas of ITC review which must be done before the end of every financial year to ensure that any wrong credit availed must be reversed to avoid future legal tangle.

Aug 232018
 

Key features of New GST Quarterly Returns

  1. Quarterly filing and monthly payments:

It is proposed to provide facility for filing of quarterly return to small taxpayers, who had a turnover upto Rs. 5 Cr. in the last financial year.

  1. Meaning of turnover for filing of return:

Turnover of the taxpayer shall be calculated based on the reported turnover in the last year i.e. 2017-18, annualized for the full year.

It shall be possible for the taxpayer to check on the common portal whether he falls in the category of a small taxpayer.

A newly registered taxpayer shall be classified on the basis of self-declaration of the estimated turnover.

However, they would still need to pay their taxes on monthly basis and avail input tax credit on self-declaration basis to pay the monthly taxes.

  1. Quarterly or monthly return:

Option for filing monthly or quarterly return shall be taken from these small taxpayers at the beginning of the year and generally thereafter they would continue to file the return during the year as per the option selected.

During the course of the year option to change from monthly to quarterly or vice-versa shall be allowed only once and at the beginning of any quarter.

  1. Options in quarterly return:

Small taxpayers having turnover upto Rs. 5 Cr. would have option to file one of three forms, namely –

  1. Quarterly return,
  2. Sahaj or
  3. Sugam

Quarterly return shall be akin to the monthly except that it has been simplified and shall not have the compliance requirement in relation to –

  • Missing and pending invoices as small taxpayers do not use these procedures in their inventory
  • Supplies such as non-GST supply, exempted supply etc as they do not create any liability.
  • The details of input tax credit on capital goods credit shall also not be required to be filled.

This information shall be required to be filled in the Annual Return. Small taxpayers who would like to facility of missing and pending invoice may file monthly return.

  1. Quarterly Return:

Option to create profile in the quarterly return shall also be available.

Sahaj and Sugam are predetermined profiles of the quarterly return.

  1. Sahaj and Sugam Returns:

Small taxpayers often have purchases only from the domestic market and sales in the domestic market i.e B2B purchases locally and supplies either as B2C or B2B+B2C.

They constitute a very large part of the tax base and therefore two simplified quarterly returns are proposed for them respectively.

They have been named as “Sahaj” (only B2C outward supplies) and “Sugam” (both B2B and B2C outward supplies).

  1. Uploading of invoices:

The recipients from these small taxpayers would need uploaded invoice for availing input tax credit and therefore the small taxpayers would be given facility to continuously upload invoices in the normal course.

The invoices uploaded by 10th of the following month would be available as input tax credit to the recipient in the next month as is the case in case of purchases from large taxpayers.

  1. Payment declaration form for payment of monthly taxes:

These small taxpayers would continue to pay taxes on monthly basis and in the first and second month of every quarter, they would use a payment declaration form to make the payment.

In the payment declaration form, self-assessed liability and input tax credit on self-declared basis shall be declared.

To assist in tax payment and availing input tax credit, necessary liability arising out of uploaded invoices of outward liability and input tax credit flowing from viewing facility would be shown to the taxpayer.

The payment declaration form shall only allow full payment of the liability arising out of uploaded invoices.

Late payment of tax liability including that in first and second month of the quarter shall attract interest liability.

  1. Lower compliance cost:

The benefit of this simplification would be that the compliance cost for small taxpayers would come down as payment declaration form is not a return and minor errors in the same would not lead to initiation of any legal action.

  1. Pending and missing invoices:

Small businesses have only a few supplies to receive and therefore they track their purchases well and may not need credit on missing invoices. Therefore quarterly return shall not have the compliance requirement of missing and pending invoices as small businesses do not use these procedures in their inventory management.

Aug 022018
 

Tax payable on purchase from an unregistered dealer

In GST if you are a registered dealer and you are purchasing goods from a unregistered dealer in that case registered dealer have to pay GST (Goods and Service Tax or tax) and selling unregistered dealer is not liable to pay tax.

Under section 9(4) registered dealer will have to pay tax at the time of purchasing the goods from an unregistered dealer and this is commonly known as reverse application of tax or RCM.

For example, there is a large company and the company is registered with GSTN and this company is purchasing goods from an unregistered person  for example, petty expenses like tea etc. from the tea vendor or office stationary for an office then register company is only liable to pay tax on that petty expense

How to make payment of taxes in case of RCM (Reverse charge mechanism):

The payment of taxes can be made under GST out of two types of ledger:

  1. Electronic Credit ledger: This ledger gets credit with the taxable supplies received by the registered taxable person each time purchase tax invoice are updated by registered dealer.
  2. Electronic Cash ledger: This ledger gets credits with the taxes paid in cash / banking channel through challan.

Registered person purchasing goods from unregistered person can not pay tax under RCM using credit ledger. He have to pay RCM liability in cash and immediately take ITC of such taxes paid if the procurement so made is eligible for input tax credit.

Invoicing:

Unregistered dealer cannot make invoice (means tax invoice). However, he can pass on the commercial invoice to registered dealer.

On receipt of goods registered person shall make another invoice (tax invoice) based on commercial invoice issued by registered dealer as if he himself is supplying good to him. This means in such special case it shall be presumed that such registered supplier supplies goods / services to himself.

Blockage of working capital:

There is a time limit of one month approximately for availing ITC of GST paid in cash under reverse charge mechanism. Thus, there is blockage of working capital to that extent.

Relief:

A big relief is given by government to the assessee. There is a limit of Rs. 5000 per day per unregistered supplier for applicability of RCM. Thus, this is big relief to small tea vendors and dhaba walas which supplies in small quantities valuing rupees five thousand or less.

However, once the limit of five thousand is crossed for any unregistered vendor GST would be payable on total value including rupees five thousand for supplies made from that particular vendor.

Another relief is given by government is that the tax liability under RCM for supplies made from unregistered dealer is now suspended till sept., 2018 as of now.

Aug 012018
 

Important aspects of E-way bill

Generation of E-way bill:

  1. In cases of outward supply returns (sales returns), the customer or the transporter shall be the person causing the movement of goods and hence shall be responsible to generate the e-Way bill.
  2. In case of high sea sales, since the supply is effected before the goods cross the customs frontiers, an e-Way bill is not required. However, the ultimate buyer will be required to generate an e-Way bill (if the consignment value exceeds Rs. 50,000) to move goods from the port to the place of business.
  3. In case a customer is purchasing and moving the goods himself and the value exceeds Rs. 50,000/-, an e-Way bill can be generated by the taxpayer or supplier based on the invoice issued to him. The customer may also enroll as a citizen and generate the e-Way bill himself.
  4. In case the consignee or recipient refuse to take the delivery of goods, the transporter can get one more e-Way bill generated with the help of the supplier/recipient by indicating the supplies as sales return with relevant document.
  5. If the individual bills are less than Rs. 50,000/- but the total value of goods in a conveyance exceed Rs. 50,000/- the transporter shall be responsible / liable to raise an e-Way bill since the individual parties will not be liable to generate an e-Way bill.

Processing of E-way bills:

  1. If a person has more than one registered place of business, he can create sub users for a particular place of business place and generate the e-Way bill with that business location as the place of dispatch.
  1. This helps when there are multiple places of business and goods are moved from each of those premises.
  2. A maximum of 3 sub users can be created for every additional place of business.
    1. If the selected transporter denies carrying goods, or goods are not transported or transported in the manner specified, the e-Way bill should be cancelled within 24 Hours.
  3. If 24 hours have elapsed, then the other party (supplier/recipient) must be requested to cancel the e-Way bill within 72 hours.
    1. Even if there are multiple invoices belonging to the same consignor and consignee, separate and multiple EWB’s shall be generated.
  4. Multiple invoices cannot be clubbed to generate one e-Way bill.
  5. Multiple EWB’s can be clubbed into one consolidated e-Way bill if the goods are being moved in a single conveyance.
    1. Where the goods are transported from one conveyance to another then the details of conveyance in the E-Way bill in Part B should be updated. The authorized transporter can assign the e-Way bill to any enrolled or registered transporter for further transportation. The new transporter can alone update PART-B.
    2. PART-B has to be updated each time the vehicle changes in the case of multimodal transport.

Value for generation of E-way bills:

  1. The value in e-Way bill in case goods are sent on lease basis will be the value of goods and not the lease charges.
  2. The consignment value shall be only the value of the goods being moved and shall not include any service element.
  • The HSN codes of only the goods shall be specified and not of the services in the invoice. If the services are integral part of supply of goods then the value of services shall be merged with value of goods.