Challenges of GST Implementation: Unstable Notifications and Compliance Dates

1. and Going Forward …. By Yash Dhadda | Chartered Accountant | Jaipur E-Way Bill

2. WHAT IS THE PROBLEM? GST-World

3. In all this your Expressions ! GST Network------------------------------------ Unstable GST Notifications------------------------------- Too Many GST Compliance Date-------------------------- Deferred GST-World

4. Abicor and BinzelTechnoweld Pvt. Ltd. V/s Union of India and Anr. (Bombay High Court) • (ix) We do not think that these are satisfactory state of affairs. A tax like Goods and Services Tax was highly publicised and termed as popular. We had yet not seen a celebration of New Tax regime, but that has followed with great hue and cry. These celebrations mean nothing. The special sessions of Parliament or special or extraordinary meetings of Council would mean nothing to the assessees unless they obtain easy access to the website and portals. The regime is not tax friendly. We hope and trust that those in charge of implementation and administration of this law will at least now wake up and put in place the requisite mechanism. This is necessary to preserve the image, prestige and reputation of this country, particularly when we are inviting and welcoming foreign investment in the State and the country. We hope and trust that such petitions are rarity and the Court will not be called upon to administer the implementation of the law, leave alone monitoring and supervising the working of the individual officials, howsoever high ranking he may be. GST-World

5. E-WAY BILL PROVISION GST-World

6. Why do we need E-Way Bill? GST-World

7. Section-68(CGST): Inspection of Goods in Movement & Sec 20 of IGST 20. Subject to the provisions of this Act and the rules made thereunder, the provisions of Central Goods and Services Tax Act relating to,–– (xv) inspection, search, seizure and arrest; shall, mutatis mutandis, apply, so far as may be, in relation to integrated tax as they apply in relation to central tax as if they are enacted under this Act: GST-World

8. Notification for Intra-State E-Way Bill GST-World

9. Impact of E-Way Bill and necessary changes GST-World

10. E-Way Bill and Size of the Organization GST-World

11. Where E-Way Bill is not required? (For Central Laws) • (14) Notwithstanding anything contained in this rule, no e-way bill is required to be generated— (b) where the goods are being transported by a non-motorised conveyance; "motor   vehicle"  or   "vehicle"  means  any  mechanically propelled vehicle adapted for use upon roads whether the power of 1    Subs. & ins. by Act. propulsion is  transmitted thereto from an external or internal source and includes  a chassis  to which  a body  has not been attached and a trailer; but  does not include a vehicle running upon fixed rails or a vehicle of  a special type adapted for use only in a factory or in any other enclosed  premises or  a vehicle  having less  than four  wheels fitted  with  engine  capacity  of  not  exceeding  thirty-five  cubic centimetres; (d) in respect of movement of goods within such areas as are notified under clause (d) of sub-rule (14) of rule 138 of the Goods and Services Tax Rules of the concerned State; GST-World

12. Gujarat Intra-State E-Way Bill GST-World

13. Kerala E-Way Bill GST-World

14. Where E-Way Bill is not required? (Goods Specific) GST-World

15. Where E-Way Bill is not required? (For Imports and Exports) Factory to ICD without Electronic Seal? GST-World

16. Where E-Way Bill is not required? (Where Consignor is) Movement is through Rail GST-World

17. Where E-Way Bill is not required? (Weight bride) Place of Business Weight bride Within 20 kms Movement is accompanied by Delivery Challan GST-World

18. Documents required for Movement GST-World

19. Documents Required GST-World

20. APPLICABILITY- Rule 138 BEFORE COMMENCEMENT OFMOVEMENT Consignor / Supplier - Ifregistered Specified Goods of consignment Value more thanRs.50K Transporter By Recipient if supplier isunregistered At option of unregistered person and for value upto50K GST-World

21. Types of Movement GST-World

22. Documents Required (Step by Step Guide) • Whether Goods will be leaving Place of Business? (1) • If Yes, identify the purpose of removal? (2) • According to purpose identification prepare Tax Invoice or Delivery Challan(3) • If Debit Note, Credit Note, Tax Invoice for Service Supply, Purchase Invoice etc are prepared? (4) • Still prepare Delivery Challan in all such cases (5) • Identify if E-Way Bill is required in accordance with Rule 138. (6) • If yes, identify how it will be prepared? Website, SMS, Anriod App or Direct API? (7) • Prepare document on basis of document mentioned in step (3) or (5) || (8) • Attach both documents and hand over to the transporter or vehicle driver or carry yourself. (9) GST-World

23. E-Way Bill GST-World

24. E-Way Bill GST-World

25. What is Consignment ? • Mr A carrying tenting material from Jaipur to Jodhpur worth Rs 150000/- with him for using to provide catering service. Is he required to generate E-Way Bill ? Mr A is a registered person in Rajasthan. It is an intra-state movement. Value of goods are above Rs50000/- Is this a consignment value? This is for own use movement Webster Dictionary : Consignment means “A thing consigned”. Consigned means: To give over to another charge, to send goods to another GST-World

26. What is Consignment ? • Will answer change if Mr A carrying a laptop from Jaipur to Jodhpur worth Rs 150000/- with him in Airplane for own use. Is he required to generate E-Way Bill ? Mr A is a registered person in Rajasthan. It is an intra-state movement. Value of goods are above Rs50000/- Is this a consignment value? This is for own-use movement Webster Dictionary : Consignment means “A thing consigned”. Consigned means: To give over to another charge, to send goods to another GST-World

27. What should be included in Consignment Value? When movement is for Supply • To be determined in accordance with Section 15 of CGST Act • To include CT, ST and IT • In case of Imports, Customs Duty to be also included When movement is not for Supply • In accordance with Rule 55 of the CGST Act (i.e. Value in Delivery Challan) GST-World

28. Issues • What will happen when samples whose cost is Rs 65000/- are sent to a prospective buyer? • What will happen when Car is given by a car dealer in exchange of advertisement in newspaper? GST-World

29. How will Transporter Know? GST-World

30. Who will Generate E-Way Bill? GST-World

31. Who Will Generate E-Way Bill? (Movement by URP) GST-World

32. Who Will Generate E-Way Bill? (Movement by URP) GST-World

33. Section 10(1)(b)- Bill to Ship To !-Between Third Party and Recipient Supplier (Jaipur) Recipient (Pune) Section 10(1)(a)/(c) IGST Section 10(1)(b) IGST Third Party (Ahmedabad) GST-World

34. Deemed Place of Supply [Section 10(1)(b)] GST-World

35. Supply involves movement of Goods GST-World

36. Supply does not involve movement of goods [Section 10(1)(c)] GST-World

37. MORE THAN ONE CONSIGNMENT IN A SINGLECONVEYANCE • Where all individual consignment value is more than 50thousand:- • The Supplier or recipient shall furnish information in Part A andB. • The transporter may generate a consolidated e-way bill in respect of each such consignment prior to commencement of GSTBills. • Where individuals consignment value is less than 50 thousand:- • Transporter shall generate E-way bill on the basis of Invoice orchallan Generated by supplier and after that he may generatedconsolidated • E-waybill. GST-World

38. TRANSPORTATIONPERIOD- Acceptance & Rejection • E way bill shall be valid for below mentioned validityperiod:- • This validity period shall be counted from the time of e way bill generation on the websiteand one day means 24hours. • If due to any reason material could not be transported then the e-way bill may becancelled within 24hours. • In exceptional circumstances new e-way bill may begenerated. • The Recipient has to communicate his acceptance/rejection to e-way bill within 72 hours.If not communicated so then thee-way bill shall be deemed to beaccepted. GST-World

39. Sales Return at Door Step? GST-World

40. What will happen to Bill to Ship to and Exports? • Goods sent to CHA through GTA. Should it accompany Invoice always? • Goods sent to direct buyer through premises of supplier. 2 E-Way Bills? GST-World

41. Issues In Generation of E-Way Bill • Goods transferred from one branch to another within the same state • Goods sent to own warehouse and received back from own warehouse • Movement of goods from warehouse to ICD • Movement of goods returned by the recipient (purchase return). If yes, on basis of what document, should e-way bill be generated. (Debit note with GST cannot be issued by recipient and supplier is not agreeing to issue credit note. DC cannot be issued since movement is not 'other than supply') • Industrial gases supplied in cylinders and empty cylinders returned by recipient • Goods purchased worth Rs. 60,000 by end consumer if: • Delivered by supplier • Transported by consumer in his own vehicle • Transported by a auto hired by customer • Transported by a cycle rickshaw hired by customer GST-World

42. Job work and e-way bill GST-World

43. Document for Job Work (Sending Goods) GST-World

44. Document for Job Work (Receiving Goods) GST-World

45. Issues in Job Work • Type of Movement – Job Work and Others • E-Way Bill- Inter and Intra • Job Work Service Tax Invoice vs Delivery Challan • Value of Goods – Sent and Received • Linking with ITC-04 vs Planning in relation to Job Work (Buying Goods by Job Work) • Job Work Completed- DC Endorsement vs Fresh DC. GST-World

46. Direct Receipt by Job Worker from Supplier Supplier (Jaipur) Job Worker - Invoice on Principal - Bill to Principal Delivery Challan on JW Principal Who will prepare E-way Bill? (If movement is caused by Supplier or Principal?- 2 E Way Bills ? GST-World

47. E-Way Bill GST-World

48. Other Issues • CKD / SKD Movement • Correction in E-Way bill Information (After 24 hours) • Changing Vehicle vs Changing Transporter • Detention Procedure GST-World

49. PENALTY PROVISIONS GST-World

50. Section 122: Penalty for certain offences. • 122. (1) Where a taxable person who–– • (xiv) transports any taxable goods without the cover of documents as may be specified in this behalf; • (xviii) supplies, transports or stores any goods which he has reasons to believe are liable to confiscation under this Act; • he shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax evaded Whether means rea required? GST-World