Latest updates and amendments in GST

Detailed procedure to be followed for generation of E-way bill and Information to be furnished prior to commencement of movement of goods has been notified by the Central Government:

The Central Government ('the Government') vide Notification No. 27/2017- Central tax, dated August 30, 2017 has substituted Rule 138 of the Central Goods and Services Tax ('CGST') Rules, 2017 and prescribed detailed procedure to be followed for generation of E-way bill and Information to be furnished prior to commencement of movement of goods.

CG has prescribed various forms relating to E-way Bill e.g. Form GST EWB - 01, Form GST EWB - 02, Form GST EWB - 03, Form GST EWB - 04 and Form GST INV-1. While it has amended formats of GST RFD-01 and GST ENR-01 applicable w.e.f. July 1, 2017.

If consignment value exceeds Rs. 50,000/-, then E-way bill needs to be generated in Form GST EWB - 01 by the registered person who causes movement of goods and he will fill Part A of Form GST EWB-01. After that transporter or recipient of supply as consignee will generate Form GST EWB - 01 and will fill Part-B of Form GST EWB-01 before movement of goods. The supplier or transporter may, at his option, generate and carry the E-way bill even if the value of the consignment is less than Rs. 50,000/-.

Where the goods are transported for a distance of less than 10 km. within the State/ UT from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the transporter may not furnish the details of conveyance in Part B of Form GST EWB-01. Further, if the goods are supplied by an unregistered supplier to a registered person, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of the movement of goods.

Upon generation of the E-way bill on GSTN portal, a unique E-way bill number ('EBN') shall be made available to the supplier, the recipient and the transporter.

Moreover, any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, update the details of conveyance in the E-way bill on GSTN portal in Form GST EWB-01. However, if the goods are transported for a distance of less than 10 km. within the State/ UT from the place of business of the transporter finally to the place of business of the consignee, the details of conveyance may not be updated in the E-way bill.

Where multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number of E-way bills generated in respect of each such consignment on GSTN portal and a consolidated E-way bill in Form GST EWB-02 may be generated by him on the said portal prior to the movement of goods.

Where after generation of E-way bill either goods are not transported or are not transported as per the details furnished in the E-way bill, such E-way bill may be cancelled on GSTN portal within 24 hours of its generation.

Depending on the distance needed to transport the goods, validity of an E-way bill or a consolidated E-way bill will be determined. It will remain valid for 1 day if distance to be covered does not exceed 100 km. while validity period will be extended by 1 additional day for every 100 km or part thereof.
The facility of generation and cancellation of E-way bill may also be made available through SMS.

However, in some cases no E-way bill is required to be generated.

The person in charge of a conveyance shall carry the invoice/ bill of supply/ delivery challan and a copy of the E-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner. A registered person may obtain an Invoice Reference Number from GSTN portal by uploading a tax invoice issued by him in Form GST INV-1 on the said portal and produce the same for verification by the proper officer in lieu of the tax invoice and such number shall be valid for a period of 30 days from the date of uploading. Where the registered person uploads the invoice on GSTN portal, the information in Part A of Form GST EWB-01 shall be auto-populated on the basis of the information furnished in Form GST INV-1.

The Commissioner or an authorized officer can verify documents and conveyances as well as can perform inspection and verification of goods.

The list of amendments made under this notification can be accessed at below link:
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Compensation Cess on Motor vehicles may be increased in due course:

The Union Cabinet, after receiving recommendations from the GST Council, in its meeting held on August 30, 2017 has given its approval to promulgate an ordinance to suitably amend the Goods and Services Tax (Compensation to States) Act, 2017. The approval would allow, to increase the maximum rate, at which the Compensation Cess can be levied from 15% to 25% on:

a) Motor vehicles for transport of not more than 13 persons, including the driver falling under sub-headings 870210, 8702 20, 8702 30 or 8702 90; and
b) Motor vehicles falling under headings 8703.

However, there is no change in the effective rates of Compensation cess on specified motor vehicles. The issue regarding the increase in effective rate of Compensation cess on motor vehicles will be examined by the GST Council in due course.

The list of clarifications made in the above press release can be accessed at below link:
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