for association of finance and tax professionals
TRANSCRIPT
For Association of Finance and Tax Professionals
CA Chetan AgrawalMob: + 91 99533 94480
email: [email protected]
Job Work
E-way Bill
GST Returns
5th June, 2021
Definition
Section 2(68) of the CGST Act :
“Job work” means any treatment or process undertaken by a person on goods belonging to another registered
person and the expression “job worker” shall be construed accordingly
Treatment or
Process
Goods belong
to another
Registered
Person
Job
Work
Treatment or Process
Process
Chambers 21st Century Dictionary: A series of stages which a product, etc. passes through, resulting in the
development or transformation of it.
New Webster’s Dictionary of the English Language: To treat or prepare by some particular process
In Chowgule & Co. Pvt. Ltd. & Anr vs Union Of India & Others 1981 AIR 1014 the Supreme Court
observed as under:
“The nature and extent of processing may vary from case to case; in one case the processing may be slight and
in another it may be extensive; but with each process suffered, the commodity would experience a change.
Wherever a commodity undergoes a change as a result of some operation performed on it or in regard to it,
such operation would amount to processing of the commodity.”
Treatment
Dictionary.com: Subject to some action
Lexico.com: The use of a chemical, physical, or biological agent to preserve or give particular properties to
something.
Job Work- Include manufacture?
• Section 2(72) of the CGST Act :
“manufacture” means processing of raw material or inputs in any manner that results in emergence ofa new product having a distinct name, character and use and the term “manufacturer” shall beconstrued accordingly
PRODAIR AIR PRODUCTS INDIA (P)
LTD. [2018 (18) G.S.T.L. 817 (A.A.R. -
GST) Kerla]
• The term ‘process’ is wide enough to include any activity
of conversion, manufacture, development or preparation of
goods.
• Process undertaken by the applicant on the goods
belonging to another registered person qualifies as job
work even if it amounts to manufacture.
KOLHAPUR FOUNDRY AND
ENGINEERING CLUSTER [2020 (42)
G.S.T.L. 127 (A.A.R. - GST - Mah.)]
• Job work comprise of the treatment or process which may
or may not amount to manufacture
C.B.E. & C. Flyer No. 27, dated 1-1-2018 • Includes outsourced activities that may or may not
culminate into manufacture
Schedule I: Deemed Supply
Supply : Section 7Includes
• All forms of supply of
goods or services or
both such as sale, ……..
made or agreed to be
made for a
consideration by a
person in the course or
furtherance of business
• the activities specified
in Schedule I, made or
agreed to be made
without a
consideration
Schedule I• Permanent transfer or
disposal of business
assets where input tax
credit has been availed
on such assets
Section 143
• A registered person (hereafter in this section referred to as the “principal”) may
• under intimation and
• subject to such conditions as may be prescribed,
• send any inputs or capital goods,
• without payment of tax,
• to a job worker for job work and from there subsequently send to another job worker and likewise
Transfer of Goods
Principal Job Worker 1 Job Worker 2
Inputs/Capital
Goods
Inputs/Capital
Goods
Supplier
Job Worker 1 Job Worker 2
Inputs/Capital
Goods
Inputs/Capital
Goods
Supplier
Job Worker 1 Job Worker 2
Inputs/Capital
Goods
Inputs/Capital
Goods
Supplier
* Input includes intermediate goods arising from any treatment or process carried out on the inputs by the principal or the job worker
Removal of Goods
Domestic
Supply
Inputs/CG/FG
FG
• Registration requirement: Job worker registered/ Principal declare additional place of business
• Supply will be regarded as supply by the Principal and not by the job worker
• Responsibility for sending and bringing back or supplying is of the Principal
• Responsibility of keeping proper accounts of the inputs and capital goods sent for job work also lies with the
Principal
Inputs/CG/FG
Last Job Worker
ExportPrincipal
Deemed Supply
Deemed
supply if
inputs not
received back
or supplied in
1 year
1 year/3 year
period can be
extended by
Commissioner
upto 1 year/2
year
Liability to
pay tax along
with interest if
not received
within
prescribed
period
Deemed
supply if
capital goods
not received
back in 3
years
Condition not
applicable to
moulds and
dies, jigs and
fixtures, or
tools
Non-return of Inputs: Consumed Fact:
• The Applicant was a manufacturer of cable tray, angel ladder tray etc., which are mainly used for electrical works. The Applicant
sends steel structures for galvanising to a job worker along with consumable items namely furnace oil, zinc, nickel that are to be
consumed in the galvanising process.
Issue:
• Whether dispatch of those consumable materials is to be treated as supply from the principal to the job worker if they are not
returned within the time allowed under Section 143(1)(a) of the GST Act.
Held:
• The meaning attributed to ‘inputs’ in the Explanation to Section 143 takes care of the difference between the inputs sent to the
job worker and the goods returned after some intermediate treatment/process that may exhaust some of the inputs sent out. It
expands the meaning of ‘inputs’ to the intermediate goods that include, as embedded, attached or consumed the inputs
that are exhausted in the process of manufacturing the intermediate goods.
• So, the zinc, furnace oil or nickel exhausted in the process of galvanising need not be physically returned. If the galvanised
structures are returned that will be sufficient compliance of Section 143(1)(a) of the GST Act.
Ratan Projects and Engineering Co. Private Limited - 2019 (23) G.S.T.L. 416 (A.A.R. - GST)WB
Non-return of Inputs: Another Form
Held:
• Relying upon the decision Bombay High Court Judgment in the case of Indorama Textiles Ltd (upheld by Apex Court) it was
observed that that electricity can be generated on the Job work basis.
• Even if the coal is consumed in the process of generation of electricity, thereby becoming irretrievable, it will not preclude the
proposed arrangement from being a job work transaction.
• Therefore, even if the inputs (coal) are brought back from the premises of JEL (job worker) in another form (electricity) the
arrangement would constitute as job work.
JSW ENERGY LIMITED - 2020-VIL-32-AAAR
Issue:• Whether the aforesaid activity qualify as job work?
Fact:
• JSL would supply coal and other inputs to the Applicant on a free-of-cost basis. On receipt of the same, Applicant would
undertake certain processes to convert the said inputs into power. In accordance with the Job Work Agreement, the title to the
coal or any other inputs along with the power generated from the said inputs vested with JSL.
ITC to Job Worker
Section 19 and 143Where the inputs and capital goods
sent for job work are not received
back by the principal after
completion of job work or otherwise
or are not supplied from the place of
business of the job worker within
1/3 years of being sent out, it shall
be deemed that such inputs had been
supplied by the principal to the job
worker on the day when the said
inputs were sent out.
Section 16(2)(d)Provided further that where a
recipient fails to pay to the supplier
the amount towards the value of
supply along with tax payable
thereon within a period of 180 days
from the invoice date, an amount
equal to the input tax credit availed
by the recipient shall be added to his
output tax liability, along with
interest.
Rule 37Exceptions:
• Supplies made without
consideration as specified in
Schedule I
• Amount added in accordance
with Section (15)(2)(b)
Section 16(4)A registered person shall not be
entitled to take input tax credit in
respect of any invoice or debit note
for supply of goods or services or
both after the due date of furnishing
of the return under section 39 for
the month of September following
the end of financial year to which
such invoice or [* * *] debit note
pertains or furnishing of the
relevant annual return, whichever is
earlier.
Return of inputs after prescribed period
“If such goods are returned by the job worker after the stipulated time period, the same would be treated
as a supply by the job worker to the principal and the job worker would be liable to pay GST if he is
liable for registration in accordance with the provisions contained in the CGST Act read with the rules
made thereunder.”
- Circular No. 38/12/2018, dated 26-3-2018
• Provision under which such return constitutes supply?
• Whether ITC would be available to the Principal?
• Section 16(2) compliance?
Other Aspects A: Input Tax Credit (Section 19)
• ITC allowed even if inputs/capital goods sent to a job worker for job work
• ITC shall be allowed even if the inputs/capital goods sent directly to a job worker for job work
• If job worker is registered – can be supplied by the job worker
• If job worker is not registered – can be supplied by the Principal
B: Waste and Scrap generated during job work (Section 143(5))
Other Aspects C: Liability to issue invoice, determination of place of supply and payment of GST
As per section 143 (1)(b) the principal can send the inputs or capital goods to the job worker without payment of
tax and thereafter he can-
“supply such inputs, after completion of job work or otherwise, or capital goods, other than moulds and
dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out from
the place of business of a job worker on payment of tax within India, or with or without payment of tax for
export, as the case may be”
• The time, value and place of supply would have to be determined in the hands of the Principal irrespective of
the location of the job worker’s place of business/premises
• Invoice would have to be issued by the Principal
• In case of exports LUT shall be executed by the Principal
Circular No. 38/12/2018, dated 26-3-2018
Other Aspects C: Liability to issue invoice, determination of place of supply and payment of GST
Scenario A
Scenario B
Use of Additional material by Job Worker?
Any treatment or process which is
applied to another person’s goods is a
supply of services
(S. No. 3 Schedule II & Section 7(1)(a)
Composite supply means a supply
consisting of two or more taxable
supplies of goods or services which are
naturally bundled and supplied in
conjunction with each other in the
ordinary course of business, one of
which is a principal supply
Section 2(30)
Job work means any treatment or
process undertaken by a person on goods
belonging to another registered person
and the expression “job worker” shall be
construed accordingly
Section 2(68)
Principal supply means the supply of
goods or services which constitutes
the predominant element of a
composite supply and to which any
other supply forming part of that
composite supply is ancillary;
Section 2(90)
Use of additional material by Job Worker? PRESTIGE ENGINEERING (INDIA) LTD.
Vs. COLLECTOR OF C. EXCISE,
MEERUT 1994 (73) E.L.T. 497 (S.C.)
• When the job worker contributes his own raw material to the article
supplied by the customers and manufactures different goods it does not
amount to job work
• However, addition or application of minor items by the job-worker would
not detract from the nature and character of his work.
• Example 1: A tailor entrusted with a cloth piece and asked to stitch a shirt,
a pant or a suit piece may add his own thread, buttons and lining cloth.
• Example 2: A factory may be supplied the shoe uppers, soles etc. by the
customer and the factory applies its own thread or bonding material and
manufactures shoes therefrom and supplies them back to the customer,
charging only for its work.
• In both the cases the nature of work does not cease to be job-work.
PRODAIR AIR PRODUCTS INDIA (P) LTD.
[2018 (18) G.S.T.L. 817 (A.A.R. - GST)
• The application of minor items by the job worker would not detract it
being a job work.
Circular No. 38/12/2018, dated 26-3-2018 • The job worker is expected to work on the goods sent by the principal and
whether the activity is covered within the scope of job work or not would
have to be determined on the basis of facts and circumstances of each
case.
• The job worker, in addition to the goods received from the principal, can
use his own goods for providing the services of job work
Use of additional material by Job Worker?
Fact:
• The applicant was engaged in repairing and servicing of transformers. The applicant transports the defective and
damaged transformers, dismantles them and removes and replace the burnt coil and other damaged parts and
accessories that require replacement/repair. The repaired transformers are tested and delivered to the customer.
Issue:
• Whether the said repairing/servicing is job work?
Held:
• Value of replaced parts and accessories constitute major portion of entire value of supply.
• Therefore, since the applicant’s contribution is not limited to labour and skills, activity cannot be called a job
work as defined under GST law.
• It is a composite supply since it involves supply of goods and services.
• Contract is not for supply of spare parts but for treatment or process for maintenance and removal of defects.
Supply of goods is not as a chattels but as replacement only.
• Accordingly, notwithstanding major portion of value being that of goods, it is service of repair and maintenance
that is principal supply classifiable under SAC 998719
ALOK BHANUKA - 2019 (23) G.S.T.L. 375 (A.A.R. - GST)WB
Documentation Requirements Situation Requirement
Goods sent by Principal to the job
worker
• Principal to prepare triplicate copies of challan (Rule 45 and 55)
• Two copies of challan to be sent to job worker along with goods
Goods sent from one job worker to
another job worker
• Challan may be issued either by the Principal or job worker
• Alternatively, endorsement of challan issued by the Principal indicating
therein the quantity and description of goods being sent
Goods returned to the principal by the
job worker
• Job worker to send one copy of the challan received by him from the
Principal
Goods sent directly by the supplier to the
job worker
• A copy of tax invoice to be issued by the supplier under bill to ship to
model
• Principal shall also issue challan and send to the job worker directly
Imported goods sent directly from the
customs station to the job worker
• Movement of goods to the job worker with a copy of the Bill of Entry
• Principal shall also issue challan and send to the job worker directly
Goods returned in piecemeal by the job
worker to principal or another job
worker
• Challan issued originally by the principal cannot be endorsed
• Fresh challan is required to be issued by the job worker
Circular No. 38/12/2018, dated 26-3-2018
ITC-04 • As per section 143 the Principal can send any inputs or capital goods without payment of tax to a job worker
for job work and from there subsequently send to another job worker under intimation
• The details of challans issued for goods dispatched or received from a job worker during a quarter shall be
included in FORM GST ITC-04 furnished on or before the 25th day of the succeeding month (Rule 45 (3))
• The FORM GST ITC-04 will serve as the intimation as envisaged under section 143 of the CGST Act
• No requirement of filing ITC-04 if job work carried at principal’s premises
• Content of the form:
• Table 4: Details of inputs and/or capital goods sent for job work
• Table 5A: Details of inputs/ capital goods received back from job worker and losses and wastes
• Table 5B: Details of inputs / capital goods received back from subsequent job worker and losses and
wastes
• Table 5C: Details of inputs/ Capital goods supplied from premises of job worker and losses and wastes
ITC-04
Schedule I : CGST Act
ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION
1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.
2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in
the course or furtherance of business :
Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as
supply of goods or services or both.
3. Supply of goods —
(a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or
(b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.
4. Import of services by a [person] from a related person or from any of his other establishments outside India, in the course or
furtherance of business.
• E-way Bill is a document required to be generated for
movement of goods from one place to another
• Under GST, it ensures that a taxpayer, prior to movement of
goods furnishes each transaction’s details to the tax department
and thus obtain the acknowledgment no. or the E-way Bill
• The generation of E-way Bill is to be done electronically through
an online GST Common Portal for E-way Bill system
• After generation of e-way bill, the person-in-charge acquires an
E-way Bill number (“EWBN”) electronically and this
number/document is to be carried in transit.
Introduction
Applicability of E-way Bill- Rule 138
To be generated
by ?
When ?
Movement
Purpose ?
• Every registered person who causes movement of goods
• In relation to supply
• Inward supply from a unregistered person
• Before commencement of movement
Condition ?• Consignment value should exceed Rs. 50,000/-
• For intra-State movement in some State: Limit more than Rs. 50,000/- (as notified)
• For reasons other than supply
How ?• By furnishing information relating to the said goods as specified in Part A of FORM GST
EWB-01 electronically
Supplier/
Consignor
Recipient/
Consignee
Person liable to generate E-
way Bill
Registered RegisteredFOR – Supplier
Ex-works – Recipient
Registered Unregistered
FOR – Registered
Ex-works – Unregistered
(optional)
Unregistered RegisteredRecipient. Since, deemed to be
caused by registered person
Unregistered Unregistered Unregistered (optional)
The person who causes movement of goodsis required to generate E-way Bill
Such movement is dependent upon the following terms:
FOR Terms – It is the seller’s obligation to
deliver the goods to the place of the recipient
Movement is caused by the
supplier
Ex-works Terms – The shipping responsibility of goods is transferred to the
recipient
Movement is caused by the
recipient
Person liable to generate E-way Bill
Exception (On Authorization)
• Transporter
• E-commerce operator
• Courier agency
* Goods supplied by an unregistered supplier to a registered recipient: 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.
Consignment value
Taxable Value as declared in Tax Invoice/ Bill of
Supply/ Delivery Challan (Section
15)
Tax (CGST + SGST or
IGST, Cess )
Value of exempt
supply, if any
Consignment Value
Determination?
Compulsory generation irrespective of consignment value
• For goods are sent by a principal located in one State to a job worker located in any other State
• For handicraft goods transported from one State to another State by a person who has been exempted from the
requirement of obtaining registration under section 24 clauses (i) and (ii)
Furnishing information in E-way Bill
• Registered person causing movement ofgoods shall furnish information in Part-Ai.e. either the supplier or the recipient ofgoods.
• However, the supplier or recipient mayauthorize transporter/ e-commerceoperator/ courier agency to furnish suchinformation
• Person causing movement of goods canfurnish details in e-way bill if readilyavailable
• Assign the e-way bill to transporter forfurnishing details in e-way bill:
• Once e-way bill assigned to a transporter,supplier or recipient cannot assign it againto another transporter
Information in Part-A Information in Part-B
3 key stakeholders in generation of an E-way Bill: Supplier, Recipient or Transporter
E-way Bill is not generated unless theinformation in Part-B is furnished.
Information in Part-B needs to befurnished within 15 days of enteringdetails in Part-A.
Part A – Document details Part B – Vehicle details
• Transaction details
❑ Outward/Inward
❑ Sub-type (supply, job work, own use etc.)
• Document details
❑ Type of document (Tax invoice/ Delivery
challan/ Bill of entry)
❑ Documents number
• Consignor/consignee details
❑ GSTIN, Address
• Supply details
❑ Bill to ship to, Bill from dispatch from or
its combination
❑ Details of goods (HSN, Value, Tax Rate)
• Mode of Transportation
(Road/Railway/Ship/Air)
• Road: Vehicle details
• Railway/Ship/Air: Transport document
number
The details in E-way bill are furnished in two parts
Information in E-way Bill
Part B – Relaxation
Where the goods are transported for a distance of
upto 50 kilometers within the State from the place of
business of the consignor to the place of business of
the transporter for further transportation, details of
conveyance may not be furnished in Part B of
FORM GST EWB-01
Validity period of E-way Bill
SI.No. Distance Validity Period
1 Upto 200 KmOne day in cases other than Over Dimensional Cargo or multimodal
shipment in which at least one leg involves transport by ship
2Upto 200 km or part
thereof thereafter
One additional day in cases other than Over Dimensional Cargo or
multimodal shipment in which at least one leg involves transport by
ship
3 Upto 20 kmOne day in case of Over Dimensional Cargo or multimodal shipment
in which at least one leg involves transport by ship
4For every 20 km or
part thereof thereafter
One additional day in case of Over Dimensional Cargo or
multimodal shipment in which at least one leg involves transport by
ship
Note: Calculation of validity period
• The period of validity shall be counted from the time at which the E-way Bill has been generated and each day shall be
counted as the period expiring at midnight of the day immediately following the date of generation of E-way Bill.
• E-way bill validity can be extended before 8 hours or after 8 hours from the validity date.
Cancellation and Acceptance
Cancellation of E-way bill
• E-way bill may be cancelled electronically on the common portal within 24 hours of generation of the e-way bill
• E-way bill cannot be cancelled if it has been verified in transit
Acceptance of E-way bill
• Details of the e-way bill generated shall be made available to the supplier or the recipient as under who shall
communicate his acceptance or rejection of the consignment covered by the e-way bill:
• To the supplier, if registered, where the information in Part A of FORM GST EWB-01* has been furnished
by the recipient or the transporter; or
• To the recipient, if registered, where the information in Part A of FORM GST EWB-01* has been furnished
by the supplier or the transporter.
• Details deemed to be accepted if acceptance or rejection not communicated within 72 hours of the details being
made available to him on the common portal, or the time of delivery of goods whichever is earlier
Goods being transported as specified in Annexure (Postal baggage by department of posts, used personal and household effects, Jewellery, Precious stones etc.)
Goods being transported through a non-motorized conveyance (e.g. bullock cart)
Where the goods are being transported from the customs port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs;
In respect of movement of goods within such areas as are notified under clause (d) of sub-rule (14) of rule 138 of the State or Union Territory Goods and Services Tax Rules in that particular State or Union Territory;
Exempted goods other than de-oiled cake
Where the goods being transported are alcoholic liquor for human consumption, petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas or aviation turbine fuel;
1
2
3
4
5
6
Exemption from E-way Bill
Exemption from E-way Bill
Where the supply of goods being transported is treated as no supply under Schedule III of the Act
Where the goods are being transported upto a distance of twenty kilometers from the place of thebusiness of the consignor to a weighbridge for weighment or from the weighbridge back to the placeof the business of the said consignor subject to the condition that the movement of goods is accompaniedby a delivery challan issued in accordance with rule 55
Where the goods are being transported under customs bond from an inland container depot or a container freight station to a customs port, airport, air cargo complex and land customs station, or from one customs station or customs port to another customs station or customs port
7
8
9
Exemption from E-way Bill
Where the goods being transported are transit cargo from or to Nepal or Bhutan
Where the goods being transported to specified persons like CSD/Nuclear Power Corporation of India are exempt
Any movement of goods caused by defence formation under Ministry of defence as a consignor or consignee
Where the consignor of goods is the Central Government, Government of any State or a local authority for transport of goods by rail
Where empty cargo containers are being transported
Where empty cylinders for packing of liquefied petroleum gas are being moved for reasons other than supply
10
11
12
13
14
15
Recent Developments
Blocking of E-way Bill facility (Rule 138E)
No person shall be allowed to furnish the information in Part A of E-way Bill in respect of a registered person, whether as a
supplier or a recipient*, who-
• Person paying tax under composition scheme or availingbenefit of Notification No.2/2019-Central Tax (Rate) dated 7th
March 2019 has not furnished the statement in FORMGST CMP-08 for two consecutive tax quarters.
• Person other than a person specified in clause (a), has notfurnished the returns for consecutive two tax periods(GSTR-3B).
• Person other than a person specified in clause (a), has notfurnished the statement of outward supplies for any twomonths or quarters (GSTR-1).
• Whose registration has been suspended under sub-rule(1),(2), (2A) of Rule 21A.
The Commissioner, on receipt of application from a registered
person in FORM GST EWB-05may allow furnishing of the
information in Part A subject to such conditions and restrictions
as may be specified.
After rectification of default, this
blockage of furnishing information in
Part-A would be unblocked
* Through Notification No. 15/2021-CT dated 18th May, 2021
Validation from VAHAN System
The E-way Bill portal and the VAHAN system are integrated to cross-check/validate theregistration number of a vehicle at the time of preparing an E-way Bill. Any subsequent attemptto use a vehicle number for E-way Bill generation but not registered on the VAHAN system willnot be allowed.
The vehicle number entered in the E-way Bill will
immediately be verified with the VAHAN system to ensure
that the same is valid.
Integration with FasTag System
FasTag Data has been integrated with E-way Bill system to track the movement of the conveyance.
In case E-way Bill is generated but goods are not transported, the same would be highlighted through such integration.
INTEGRATION
ISSUES RELATING TO EWB
Issues
Change in multiple vehicle
Return of accidental/damaged goods
Movement in lots/CKD/SKD
Sales return/rejection by recipient
Import of goods in state other than registered
Multiple Transporter
Bill To Ship To
CKD/ SKD
CKD (Completely Knock Down) and SKD (Semi Knock Down) option is used when goods
are being supplied under the cover of a single invoice, but more than one vehicle is being
used for the transportation of such goods from the place of supplier/ point of origin.
Therefore, in such a scenario, following procedure needs to be adopted:
• The supplier shall issue a complete invoice before the dispatch of the first consignment;
• The supplier shall issue a delivery challan for each of the subsequent consignments, givingreference of the invoice;
• Each consignment shall be accompanied by copy of the corresponding delivery challan along with aduly certified copy of the invoice and E-way Bill on the basis of delivery challan; and
• The original copy of the invoice shall be sent along with the last consignment.
Bill To Ship To
C
B
A
OrderMovement of Goods
Final Customer: Order
Bill From : In this field details of ‘B’ are supposed to be filled.
Dispatch From : This is the place from where goods are actually
dispatched. It may be the principal or additional
place of business of ‘B’.
Bill To : In this field details of ‘A’ are supposed to be filled.
Ship to : In this field address of ‘C’ is supposed to be filled.
Invoice Details : Details of B’s invoice are supposed to be filled.
I: If invoice is generated by ‘B’
Two Transactions
One e-way bill
Press release No. 152/2018, dated 23rd April, 2018
Bill From : In this field details of ‘A’ are supposed to be filled.
Dispatch From : This is the place from where goods are actually
dispatched. It may be the principal or additional
place of business of ‘B’.
Bill To : In this field details of ‘C’ are supposed to be filled.
Ship to : In this field address of ‘C’ is supposed to be filled.
Invoice Details : Details of Invoice-2 are supposed to be filled.
II: If invoice is generated by ‘A’
Refusal by consignee to take the Goods
Consignee
Rejected
Defected Goods
Transporter E-way bill
Generate
With the help of Recipient
Supplier Indicating supply as
‘Sales Return’
Change to multiple vehicle
• In many cases, the goods are transported in one vehicle upto one point and thereafter, the goods are required to be transferred to
multiple vehicles for further transportation.
• In order to address such scenarios, E-way Bill portal provides a facility of “Change to multiple vehicle”.
Where the goods are transported for a distance of upto 50 kilometers within the State or Union territory from the place of business of the
transporter finally to the place of business of the consignee, the details of the conveyance may not be updated in the e-way bill.
Movement of Goods from Accident Location
Transporter can get E-way Bill
generated with the help of
consignor/consignee by
indicating inward supply as
“Others” and mention reason
“due to accident”Delivery Challan is
required for movement
Multiple Transporter
City YCity X City Z
Transporter- A Transporter- B
• The consignor or the recipient, who has furnished the information in Part A of FORM GST EWB-01 or the transporter, may
assign the e-way bill number to another transporter for updating the information in Part B of the Form GST EWB-01 for
further movement of the consignment
• The consignor or recipient not allowed to assign after the details of the conveyance have been updated by the transporter in
Part B of FORM GST EWB-01 -Rule 138 (5A)
C.B.E. & C. Press Release No. 144/2018, dated 31-3-2018
Goods imported in State other than the one in
which registration taken
Yes, E-way is required to be generated
Whether e-way bill is required to be generated in case of goods imported on Port of another State and after custom
clearance goods are taken to own warehouse in Home State
TransporterRecipient
Generate
New E-Way
Bill
For the purpose of furnishing thedetails of recipient, the same beselected as “Inward-Import” alongwith “Bill of entry” from an“Unregistered Person” as the supplieris located other country.
“Foreign Country” should be selectedin the drop-down menu of the State.
OR
Inspection
Documents to be carried by a person-in-charge of a conveyance
• The person-in-charge of a conveyance shall carry -
(a) the invoice or bill of supply or delivery challan, as the case may be
(b) a copy of the e-way bill in physical form or the e-way bill number in electronic form
• Above requirement not apply in case of movement of goods by rail or by air or vessel
• In case of imported goods, the person in charge of a conveyance shall also carry a copy of the bill of entry filed
by the importer of such goods
-Section 68(1) and Rule 138A
Inspection & Verification
Rule 138B: Verification of
documents and
conveyance
Rule 138C: Inspection
and verification of goods
may be carried out
during transit
Rule 138D: Uploading information regarding detention of vehicle
The proper office may intercept any conveyance to verify the e-
way bill and other documents in physical or electronic form
Vehicle intercepted and detained for a period exceeding 30
minutes, the transporter may upload the said information in
FORM GST EWB-04 on the common portal.
• Inspection of goods may be carried out during transit
• Summary report shall be recorded online in PART A of FORM
GST EWB-03 within 24 hours of inspection and the final
report shall be issued within 3 days of such inspection
Inspection &
Verification
Consequence of non-compliance
Section 122• A taxable person who transports any taxable goods without the cover of specified
documents (e-way bill is one of the specified documents) shall be liable to a penalty of Rs.
10,000/- or tax sought to be evaded (wherever applicable) whichever is greater
• Where any goods transported or stored while they are in transit in contravention of the
provisions of GST legislations, all such goods and conveyance and documents relating to
such goods and conveyance shall be liable to detention or seizure
• Can be released on payment of penalty or furnishing of security
Section 130• Provides for confiscation of such detained or seized goods and their subsequent disposal
• Confiscated goods and conveyance can be released on payment of fine in lieu of
confiscation
Section 129
Circular 64/38/2018- Clerical Errors to be ignored
Spelling Mistakes in the name of the
consignor or the consignee but the GSTIN,
wherever applicable, is correct
01
Error in the pin-code but the address of the
consignor and the consignee mentioned is correct,
subject to the condition that the error in the PIN
code should not have the effect of increasing the
validity period of the E-way Bill
02
Error in the address of the consignee to the
extent that the locality and other details of
the consignee are correct
03 Error in one or two digits of the document
number mentioned in the E-way Bill
04
Error in 4 or 6 digit level of HSN where the
first two digits of the HSN are correct and
the rate of tax mentioned is correct
05 Error in one or two digits/characters of the
vehicle number
06
Penalty to the tune of Rs. 500/- each under section 125 of the CGST Act and the respective State GST
Act may be imposed (Rs. 1000/- under the IGST Act)
Judicial Pronouncements – Circular 64/38/2018
1. Imposition of penalty for error in mentioning vehicle number in E-way bill ( Circular No 64/2018)
Held: The minor mistakes in Part-B of the e-way bill, inter-alia “error in one or two digits/characters of the vehicle number”will not invite detention order and only penalty of ₹ 1000/- (CGST- ₹ 500/- & SGST-₹ 500/-) will become due to payable.
M/s Agarwal Industries Pvt Ltd Vs. The Deputy Asst. Commissioner -2021-VIL-AP
2. Incorrect distance mentioned in the E-way bill due to typographic error resulting in expiry of the validity period
Held: Typographic error may be treated as a minor one and in such case, if the demand and penalty have been levied bythe proper officer u/s 129, the same need to be refunded to the supplier.
Godrej Consumer Products Ltd. Vs.. ACST&E-Cum- GIB/HP/ Godrej Consumer/11-02-2020/HC-67
3. Incorrectly mentioning the number of tax invoices as tax invoice number on E-way Bill.
Held: Prima facie, there seems no discrepancy in E-way Bill attracting seizure of goods. Goods directed to be releasedwithout insisting for a deposit of any amount and furnishing security as GST already paid on goods
Hindon Machinery Tools Vs. State of U.P.- 2019 (22) G.S.T.L. 4 (All.)
Other Judicial Pronouncements4. Detention of goods on the ground of under- valuation of goods
Held: The under valuation of goods in the invoice could not be a ground for the detention of the goods and vehicle u/s129 ofthe CGST Act. r/w Rule 138 of CGST Rules. Accordingly, the order is quashed, and Authorities were directed to release thegoods.
K.P. Sugandh Limited v. Commissioner, SGST, 2020-VIL-142- CHG
5. Detention of goods on the ground that the vehicle took a different route or reached wrong destination.
Held: The High Court observed that allegation of ‘wrong destination’ or that the driver has taken a different route is not aground to detain the vehicle carrying the goods or levy tax or penalty . The amount collected was directed to be refundedwith interest @ 6%.
Commercial Steel Company v. Assistant Commissioner of State Tax, 2020-VIL- 116-TEL
6. Detention of goods on the ground that tax on invoice shown as CGST: SGST as against IGST but e-way bill declaredcorrect tax as IGST
Held: The High Court observed that a clerical error on the invoice will not prejudice the Revenue. Since there is no questionof evasion of tax; goods to be released on executing a simple bond instead of issuing bank guarantee for the demand raised.
Umiya Enterprise Vs.. Assistant State Tax Officer, 2020-VIL-50-KER
Decision Pronouncement
Relcon Foundations (P) Ltd. Vs Assistant
State Tax Officer 2019 (31) G.S.T.L. 397 (Ker.)
• Goods detained by officer due to the reason that GSTR 3B and GSTR 1 has
not been filed by the supplier. Court held the detention of the goods is invalid
M/s ANANDESHWAR TRADERS Vs. STATE
OF U.P. 2021-VIL-53-ALH
• Rule 138(9) of CGST Rules does not prescribe that the dealer must
necessarily cancel the e-way bill if no transportation of the goods is made
within 24 hours of its generation
• The rule certainly does not provide any consequence that may follow if such
cancellation does not take place.
BON CARGOS PVT. LTD Vs. THE
ASSISTANT STATE TAX OFFICER 2020-
VIL-655-KER
• As per rule 138 it is not the invoice value that provides the limit for
generation of e-way bill
• Sub-Rule (1) of Rule 138 read with Explanation 2 shows that the
consignment value has to be determined from the invoice. But when goods of
the same consignment covered by multiple invoices exceed the limit of
Rs.50,000/- there should be generation of e-way bill
Other Judicial Pronouncements
Decision Pronouncement
M/s HEMANTH MOTORS Vs. STATE OF
KARNATAKA 2020-VIL-618-KAR
Issue:
• Whether the e-way Bill required to be valid not only till the conveyance
carrying the goods reaches the place of destination but also at the time when
the goods were being unloaded from the conveyance?
Held:
• The conveyance had reached the place of destination well within the expiry
of e-way bills, and the conveyance was being unloaded without any further
transit
• The appellate authority should have considered the merits of the case in the
light of the provisions of Rule 138(10) of the CGST Rules, 2017 which
prescribes the validity of an e-way bill with the extension of further period by
eight hours after the expiry.
• The impugned orders are quashed and writ petition is allowed
Other Judicial Pronouncements
TYPES OF RETURNSReturn Applicable For Particulars Due Date
GSTR-1 Normal TaxpayerMonthly statement of Outward Supplies
of goods or services or both11th /13th of next month
GSTR-2
(Suspended)
Normal Taxpayer Inward Supplies 15th of the next month
GSTR-3
(Suspended)Normal Taxpayer Monthly return [periodic]
20th / 22nd /24th of the next
month
GSTR-3B Normal Taxpayer
Monthly summary return to declare the
GST liability for the tax period and to pay
off such liability
20th of the next month
GSTR – 4 Composition Taxpayer Annual Return for Composition Taxpayer 30th April
GSTR-5Foreign Non-Resident
Taxpayer
Return for Non- Resident Taxpayer who
are not availing Input Tax Credit (ITC) on
local purchases
Registration period < 1 month,
within 7 days of the expiry of
registration, or
Registration Period > 1 month,
20th of the following month
and for remaining period 7 days
of the expiry of registration
TYPES OF RETURNSReturn Applicable For Particulars Due Date
GSTR – 6 Input Service Distributor
Monthly return for the Input Service
Distributor for distribution of its credit
among the different unit
13th of the next month
GSTR-7Tax Deductor
Return for Tax Deducted at Source 10th of the next month
GSTR-8 E-Commerce Operator Statement for tax collection at source 10th of the next month
GSTR-9
Normal tax payer (other
than ISD, casual taxpayer,
foreigners)
Annual return 31st December of next FY
GSTR – 9A Composition Taxpayer Annual return 31st December of next FY
GSTR-9C Normal taxpayer Reconciliation Statement 31st December of next FY
GSTR – 10Persons cancelling
registrationFinal Return
Within 3 months of the date
of cancellation or date of
order of cancellation,
whichever is later
SCHEMES FOR FILING RETURNS FOR OUTWARD SUPPLIES
Yes No
Monthly GSTR-1
and GSTR-3B
Monthly-PMT-06
Monthly-IFF
Quarterly GSTR-1
Quarterly GSTR-3B
Intend to
Opt
QRMP
Scheme
NO
YES
Aggregate turnover during preceding FY up to Rs. 5 crores
GSTR-1
Description
Revision
To be Filed by
Auto Population
Due Date
• Contains the details of outward supplies made during the tax period
• Regular registered taxpayer
• If E-invoice generated by the registered taxpayer
• Can’t revise but rectification can be done till furnishing of GSTR-3B for September
(of succeeding FY) or furnishing of the relevant annual return, whichever is earlier
• 11th of next month / 13th of the month following the quarter (QRMP)
GSTR-1: CONTENTTable-4 Taxable Outward
Supplies other than
supplies covered by
Table 6
Table-5 Inter-state
supplies to un-registered
person where invoice
value > Rs. 2.5 Lacs
Table-6 Zero Rate
Supplies and Deemed
Export
Table-7 Supplies ( Net of
CN DN ) to URP other
than the supplies covered
in Table 5
Table-8 Nil Rated ,
Exempted and Non GST
Supplies
Table-9Amendment of
Table no 4, 5 & 6, DN/CN
and amendments of
DN/CN
Table-11 Advance
Received / Advance
adjusted
Table-13 Documents
Issued
Table-10 Amendments in
Supplies reported in
Table 7 of earlier tax
period
Table-12 HSN Wise
Summary
QUARTERLY RETURN MONTHLY PAYMENT (QRMP) SCHEME
What is the Scheme? • Scheme is for small taxpayers to file their FORM GSTR-1 and FORM
GSTR-3B returns on quarterly basis while paying their tax dues monthly
• Scheme is optional
• Scheme is GSTIN wise and not PAN wise (Circular No. 143/13/2020-
GST, dated 10-11-2020)
Eligibility? • Taxpayers having aggregate turnover up to Rs. 5 Crore in the preceding
financial year
How to avail the scheme? • Taxpayers can opt in (avail) the scheme and opt out (exit) if they don't
wish to continue quarterly filing by navigating to Login-> Services ->
Returns -> Opt-in for quarterly return
Time to opt for the scheme? • Between the 1st day of the second month of the preceding quarter till the
last day of the 1st month of the quarter for which the option is being
exercised
• Once opted in, the scheme will continue the taxpayer decide to exit or
opt out.
QRMP SCHEME: INVOICE FURNISHING FACILITY (IFF)
What is the IFF? • Facility provided to quarterly taxpayers to file their details of outward
supplies in first two months of the quarter (M1 and M2).
• Scheme is optional
• Details of outward supplies shall not exceed the value of 50 lakh rupees
in each month
Information which can be
filed?
• The facility is similar to FORM GSTR-1 but will allow filing for only
following tables :
(a) 4A, 4B, 4C, 6B, 6C – B2B Invoices
(b) 9B – Credit/Debit Notes (Registered)
(c) 9A – Amended B2B Invoices
(d) 9C – Amended Credit/Debit Notes (Registered)
Other Features • Details can be uploaded from 1st to 13th of the subsequent month
• All invoices filed via IFF will flow in Form GSTR-2A and GSTR-2B of
the recipient.
• The details of invoices furnished using the said facility in the first two
months are not required to be furnished again in FORM GSTR-1
QRMP SCHEME: PAYMENT OF TAX
Payment Payment
• Monthly payment for two months using Form GST PMT-06
• Tax paid cannot be used for any other purpose
• Payment can be made under Fixed Sum Method or Self Assessment Method
• No payment required if adequate cash balance in cash ledger or Nil liability
• Cash ledger will be debited only at the time of filing GSTR-3B
• Due date for making payment by challan is 25th of the next month
Fixed Sum Method
• 35% of tax paid in the preceding quarter GSTR-3B or 100% of tax paid in the
last month GSTR-3B of the immediately preceding quarter
• Pre-filled challan in Form GST PMT-06
Self Assessment Method
• Determination of tax on self assessment basis (output liability- input tax credit)
• Auto drafted GSTR-2B available to ascertain eligible ITC
GSTR-3B
Description
Revision
To be Filed by
• Tax liability, RCM Liability, ITC, Tax payment
• Normal registered taxpayer
• Can’t revised but rectification can be made till the due date of furnishing GSTR-3B for
September (of succeeding FY) or furnishing of the relevant annual return, whichever is
earlier
Auto Population • On the basis of GSTR-1 filed by the registered taxpayer and ITC reported by Vendors
GSTR-3B: DUE DATE
Due Date
QRMP
Category A States*
22nd of the month
succeeding the
quarter
Category B States*
24th of the month
succeeding the
quarter
Monthly Filing
On or before 20th
of following month
Category A*:- States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana and Andhra Pradesh, the Union territories of Daman and Diu, Dadra and Nagar Haveli, Puducherry,
Andaman and Nicobar Islands and Lakshadweep
Category B**:- States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand and
Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi
Table Particulars
1 & 2 GST No. and Legal Name
3 Outward Supplies 3.1 Outward supplies and
inward supplies liable to
reverse charge
(a) Outward taxable supplies (other than zero rated, nil rated and exempted)
(b) Outward taxable supplies (zero rated )
(c ) Other outward supplies (Nil rated, exempted)
(d) Inward supplies (liable to reverse charge)
(e) Non-GST outward supplies
3.2 Of the supplies shown in
3.1 (a) above, details of inter-
State supplies
Supplies made to Unregistered Persons
Supplies made to Composition Taxable Persons
Supplies made to UIN holders
4 Eligible ITC 4 (A) ITC Available (whether
in full or part)
(1) Import of goods
(2) Import of service
(3) Inward supplies liable to reverse charge (other than 1 & 2 above)
(4) Inward supplies from ISD
(5) All other ITC
GSTR-3B: CONTENT
GSTR-3B: CONTENT
4 (B) ITC Reversed (1) As per rules 42 & 43 of CGST Rules
(2) Others
4 (C ) Net ITC Available (A) – (B)
4 (D) Ineligible ITC (1) As per section 17(5)
(2) Others
5 Values of exempt, nil-rated and non-GST inward
supplies
From a supplier under composition scheme, Exempt and Nil
rated supply
Non GST supply
6.1 Payment of Tax Tax Payable
Paid through ITC
Tax Paid TDS / TCS
Tax / Cess paid in cash
Interest
Late Fee
6.2 TDS / TCS Credit
PAYMENT THROUGH ELECTRONIC LEDGERS
Return Submission
Return Payment
ITCCash Ledger
Transfer Balance
Credit Ledger
GSTR-5 Return for Non
Resident taxable
person
• Section 2(77) defines “non-resident taxable person” as any person who occasionally
undertakes transactions involving supply of goods or services or both, whether as
principal or agent or in any other capacity, but who has no fixed place of business or
residence in India
• Non resident take registration for a specified period and it is valid for specified period in
the registration application or 90 days from date of registration, whichever is earlier.
• Advance tax on the basis of estimated tax liability required to be deposited
• To be filed within 20 days after the end of a calendar month or within 7 days after the
last day of the period of registration, whichever is earlier
• It broadly contains the details of outward supplies, inward supplies (import), tax,
interest, penalty, fees or any other amount payable and refund amount.
GSTR 6 Return for Input
Service Distributor
• Section 2(61) defines “Input Service Distributor” as an office of the supplier of goods
or services or both which receives tax invoices towards the receipt of input services and
issues a prescribed document for the purposes of distributing the credit paid on the said
services to a supplier both having the same PAN
• By filing GSTR 6 ISD distribute such credits to its other registered offices.
• GSTR 6 should be file 13th of the next month
• Revision of GSTR 6 not possible, only correction possible in subsequent returns
OTHER RETURNS
• It contains the details of the details of tax invoices on which credit has been received
and those issued, correction of earlier period return details, redistribution of ITC
wrongly distributed earlier, etc.
GSTR-7 Return for Tax
Deducted at Source
• Section 51 mandates Local authorities, Department under central and state
government, government agencies, government controlled businesses etc are required
to deduct TDS.
• Liability arise when value of total supply under the contract exceeds Rs. 2.5 Lacs.
• Rate of TDS is 2%
• GSTR 7 should be field on or before 10th of the following month
• It broadly contains details of
✓ Tax deducted at source,
✓ Amendment of details furnished in earlier tax period
✓ Amount deducted, paid,
✓ Interest, late fee payable and paid
GSTR 8 Statement for tax
collection at source
• When goods / services are sold by registered person through e commerce operator like
Flipkart, amazon etc. then e-commerce operators are required to collect TCS of the
person selling the goods / services
OTHER RETURNS
• TCS rate is 1 % on net value of goods / services.
• Amount collected to be deposited by the 10th of the following month, during which
such collection is made.
• The operator is required to furnish Form GSTR-8 by the 10th of the following month.
• It broadly contains details of
✓ tax collected at source,
✓ Amendment of details furnished in earlier tax period
✓ amount collected, paid,
✓ interest, late fee payable and paid
GSTR-10 Final Return • As per section 45 registered person whose registration has been cancelled shall
furnish a final return
• Return shall be within three months of the date of cancellation or date of order of
cancellation, whichever is later
• It broadly contains the following details of inputs held in stock, inputs contained in
semi-finished or finished goods held in stock, and capital goods/plant and machinery
on which input tax credit is required to be reversed and paid back to Government
OTHER RETURNS
OTHER RETURNS: COMPOSITION DEALERS
CMP -08 Statement for
payment of self-
assessed tax
• Due date is 18th of the following the quarter.
• Summary of self assessed tax liability
• Contain details of outward supplies, inward supplies liable to reverse charge, tax
payable, interest payable, taxes and interest paid
• Interest will be charged @ 18% p.a. for delay in filing
GSTR 4 Return for
financial year
• Annual return for Composition dealers
• Should be filed on or before 30th April following the relevant financial year
• For the FY 2020-21 due date has been extended to 31st July 2021 (Press release for 43rd
GST Council meeting).
• Inward supplies including supplies on which tax is to be paid on reverse charge
• Summary of self-assessed liability as per FORM GST CMP-08
• Tax rate wise details of outward supplies/inward supplies attracting reverse charge
during the year
• TDS/TCS Credit received
• Tax, interest, late fee payable and paid
• Refund claimed from Electronic cash ledger
OTHER RETURNS: ANNUAL RETURN
Section 35(5): 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 (GSTR-9C) under section 44(2)
Section 44(1): Registered person shall furnish an annual return (GSTR-9) on or before 31st December following the end of
such financial year.
Section44 (2): A registered person who is required to get his accounts audited in accordance with the section 35(5) shall furnish
the annual return 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
Finance Act, 2021
• Section 35(5) to be omitted
• Section 44 to be substituted: A registered person shall furnish an annual return which may include a self-certified
reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year, with the
audited annual financial statement for every financial year electronically
[To be notified]
Recommendation of 43rd GST Council Meeting
• Amendments in section 35 and 44 of CGST Act made through Finance Act, 2021 to be notified
• Taxpayers would be able to self-certify the reconciliation statement, instead of getting it certified by chartered accountants.
• This change will apply for Annual Return for FY 2020-21.
• FORM GSTR-9 (FY 2020-21) : optional for taxpayers having aggregate annual turnover upto Rs 2 Crore
• FORM GSTR-9C (FY 2020-21) : to be filed by taxpayers with annual aggregate turnover above Rs 5 Crore.
GSTR-9: CONTENT
Part I: Basic details
Part V: Details of the transactions for the financial year declared in returns of the next financial year till the specified period
Part II: Details of Outward and inward supplies made during the financial year
Part III: Details of ITC for the financial year
Part IV: Details of tax paid as declared in returns filed during the financial year
Part VI: Other Information
GSTR-9C: CONTENT
Part I: Basic details
Part V: Auditor’s recommendation on additional Liability due to non-reconciliation
Part II: Reconciliation of turnover declared in audited Annual Financial Statement with turnover declared in GSTR9
Part III: Reconciliation of tax paid
Part IV: Reconciliation of Input Tax Credit
Best
Judgement
Assessment
(Section 62)
Non-
availability of
ITC to recipient
FEW CONSEQUENCE OF NON-COMPLIANCE
Blocking of
E-way Bill
Late Fees
Cancellation
of
Registration
Interest
Liability
Best
Judgement
Assessment
(Section 62)
FEW ASPECTS TO BE CONSIDERED
Rule 86B: Restriction on use of ITC
Sequence of ITC Utilization [Section 49, 49A, 49B and Rule
88A)
ITC Reconciliation
Other aspects
Covid-19 Compliance Relief Measures
1
2
3
4
GSTR-1 DUE DATE RELAXATION
AMNESTY SCHEME REGARDING LATE FEE FOR PENDING
RETURNS
RATIONALIZATION OF LATE FEE IMPOSED
INTEREST AND LATE FEES RELAXATION
