Terming the procedure to create e-Way Bill under the goods and services tax (GST) cumbersome, Tally Solutions Pvt Ltd has expressed concerns about multi-layer declaration of details and verification during the process, which it feels may defeat the core design of GST.

“While the proposed e-way bill sounds good, this multi-layer process will make the transport of goods very cumbersome and cause delay in movement of goods. The current format is quite cumbersome and involves creating e-Way bills even though invoices are already uploaded – making it a multi-step process,” the business management software product company says.

Tally is one of the most used accounting software by businesses across India.

“Simplification is definitely required here,” Tally Solutions says, adding, “There is too much reliance on technology in every step of the transportation process, which small transporters will struggle with. When suggestions were sorted for the proposed e-way bills, there were overwhelming objections and suggestions from across industries. However, given the urgency of implementation, it has to be seen how much of stakeholders’ recommendations are taken into consideration.”

Here is what the GST Bill says on treatment of e-way bill and subsequent comment from Tally Solutions…

Rule 1 (1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees —
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an unregistered person,

shall, before commencement of movement, furnish information relating to the said goods in Part A of FORM GST INS-01, electronically, on the common portal and

(a) where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one, the said person or the recipient may generate the e-way bill in FORM GST INS-1 electronically on the common portal after furnishing information in Part B of FORM GST INS-01; or

(b) where the e-way bill is not generated under clause (a) and the goods are handed over to a transporter, the registered person shall furnish the information relating to the transporter in Part B of FORM GST INS-01 on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST INS-01:

Provided that the registered person or, as the case may be, the transporter may, at his option, generate and carry the e-way bill even if the value of the consignment is less than fifty thousand rupees.

Provided further that where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the e-way bill in FORM GST INS-01 on the common portal in the manner prescribed in this rule.

Explanation – For the purposes of this sub-rule, where the goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of movement of goods.

Tally Solutions says, there is a need to enhance the threshold limit of Rs 50,000  for generation of e-way bills and B to C purchases should be excluded from generation of e-way bills. Alternatively higher threshold limit to be fixed (iPhone is today sold at Rs 80,000).

Law Rule 1 (3) Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, generate a new e-way bill on the common portal in FORM GST INS-01 specifying therein the mode of transport.

Tally Solutions feels it would be difficult to follow this provision practically. “When a parcel is booked by a courier company, their branch or booking counter generate an e-way bill for shipment he booked. Then he moves it to branch near to him. Again, that branch (where multiple booking counter consolidate their load) generate an e-way bill to transfer it to their hub. The hub will also generate an e-way bill for connection to airlines, or train or road transport. And then again one e-way bill will be created for co-loader to airlines or train or road transport. Same process for destination till the end recipient. This is practically impossible,” it added.

Rule 1 (8) The details of e-way bill generated under sub-rule (1) shall be made available to the recipient, if registered, on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the e-way bill.

Tally Solutions feels this provision requires clarity for cases where the recipient is rejecting the e-way bill and what could be the consequence for that shipment. Will it lead to stopping supply and accordingly issuing of invoice, the company asks.

Law Rule 3 (1) The Commissioner or an officer empowered by him in this behalf may authorise the proper officer to intercept any conveyance to verify the e-way bill or the e-way bill number in physical form for all inter-State and intra-State movement of goods

Tally Solution says, “The authorised officer’s right to intercept any conveyance to verify or inspect the e-way bill will be leading to transportation delays and also bring back the check post Raj.”

According to Tally Solutions, small transporters and small businesses are not yet GST-ready and aberrations like these will further widen the preparedness gap. “GST is expected to create free environment for businesses and smoother movement of goods, but the multi-layer declaration of details and verification under E-way bill may defeat the core design of GST – a Technology Driven compliance system,” it concluded.

Source: Money Life