No change in Income Tax Slab Rate

No change in Income Tax Slab Rate

Know how much independent India's first budget was in 1947 from today's era

General Budget 2018: Know how much independent India's first budget was in 1947 from today's era?

The final full budget is going to be presented before the general elections in the year 2018 by the Modi government in 2019. Finance Minister Arun Jaitley is presenting the general budget Today. People have a lot of expectations from the budget.

Let me tell you, the central government can make big announcements in budget 2018. 

This budget can impact industries from e-commerce, health, agriculture, education, information technology (IT) and manufacturing. The government can also initiate many important schemes in these areas.

Ask yourself a question. What would people have been doing in the next seventy years after independence? If you are very old, then you may remember how to spend the day in order to buy a newspaper and people would know it. Used to be desperate to see what changes have been made in the prices of everyday things needed. From electric fans to beauty cottages and from clothing to luxuries, the prices of most things went up after the budget. The price of cigarettes was steadily rising so that the smokers were heavily exempt. 

AZAD INDIA'S FIRST BUDGET

Three months after independence, in November 1947, while presenting the interim budget, the Union Finance Minister R.K. Nishankum Chetty expressed concern over the increased prices. The main reason for this was that he had told come across additional purchasing power in the hands of society and all-round decline in both industrial and agricultural production.It is important to look into this because it indicates the situation of the economy of the time, which has taken the form of a canker which is still flowing with a slight wound. They 'attracted the attention of the House towards the issue which made the cause of concern for the government. It was that the situation of adverse equilibrium on the massive scale of foreign payments in India of that time. " In the subsequent paragraphs, he explained the rising cost of import of foodgrains and explained his point.

This issue remained so important for India's economic policy in later decades that I can not stop myself from extending it here in detail: "There is a second and more important reason for the deficit, as everyone knows Import of food grains. For many years, India has been importing food items regularly. But recently the quantity and prices of imports have increased. In 1944-45 and 1945-46 the cost of foodgrains in India was Rs 14 crores and Rs 24 crores respectively. In 1946-47, it reached level of Rs 89 crore. These figures are in addition to the import of supplemental food items, which have been incurred at an additional cost of Rs 15 crores in 1946-47 for importing from abroad. The potential amount to be spent on the import of food grains in 1947-48 is Rs. 110 crore.

There was a bitter truth hidden behind these figures. With this, the people had to face heavy troubles. This also caused India's image to be clouded. The Delhi correspondent of Time Magazine wrote in his article in the issue of August 22, 1949: "India announces the anniversary of its independence with the announcement of new and more stringent measures of economics. India is basically a hungry country today. The government has started a campaign to increase the production of grains. A campaign was launched in Viceroy's golf course in New Delhi to promote this campaign to increase food grains. Governor General Chakravarti Rajgopalachari, though not a golfer, but he stood behind a pair of oxen and photographed .

NEW TURN

Looking at the past, it seems that only when everything seemed justifiably, the wandering movement started. In 1956, India had to adopt the world economy and its own with the West and adopt a more liberal economy and open trade policy. But instead we moved in the opposite direction. In the budget of 1956 CD Deshmukh implemented such policies that continued without any major changes till the 1970s.

The reason for the change in the overall policy scenario - the ruckus of political power in implementing the second five-year plan with highly ambitious goals and unilateral strategies. Following the model of Soviet Union in the five-year plan, it was said that large scale development of the capital goods sector was developed. It was also mentioned in large scale on project imports. Deshmukh expressed his views with his unique talent to predict the future that physical targets can not be determined by bypassing the financial side.

THREE FEARS

It seems that immediately after the independence and in the subsequent years, three fears followed the finance ministers and their impact was decisive on India's economic policies. These were - fear of lack of grain, fear of unbridled inflation and the problem of foreign currency shortages to repay foreign liabilities. Most of the economic laws of India are the result of these three fates and when they are pursuing India then.

The problem of food shortage continued to follow the country in the 1950s and 1960s. This problem ended only when the name 'Green Revolution' was not a revolution in the country in the 1970s, which gave tremendous success in increasing the production of grains. We had to import food from the United States, which used to directly or indirectly take political advantage of India's sensitivity in this regard. From this, India's image was formidable as a new nation with a living and developing economy. Many Central Finance Ministers have consistently mentioned this concern in their budget speeches.

Concern of the lack of food grains in the country has continued to chase the country from the very beginning. The reason for this was that the memories of the Bengal famine were just fresh. The country was facing monsoon rain and the crisis of grains. There was a need for currency for the import of food from abroad. The stock of foreign currency was going to end. To meet the basic need of grain import, it was extremely important to save foreign exchange.

Companies Amendment (Bill) 2017- Amendments in a Glance

Companies Amendment (Bill) 2017- Amendments in  a Glance

The Companies Amendment (Bill) 2017: - Both Lok Sabha (27 July 2017) and Rajya Sabha (19th Dec. 2017) given their consent and passed this Amendment Bill.

Companies Amendment (Bill) 2017 was passed after incorporating certain notable amendments. The major amendments include definitions and clarification of certain terms in Section 2( All changes relating to Section 2 shall be published further in next upcoming article).

Omission of provisions relating to time limit of 270 days for certain filings, forward dealing and insider trading, doing away with the requirement of approval of the Central Government for managerial remuneration above prescribed limits under Schedule V, providing for maintenance of register of significant beneficial owners and filing of returns in this regard to the ROC and removal of requirement for annual ratification of appointment or continuance of auditor and so on. Have a look on the amendments: -

Section 4 – Memorandum – Name reservation up to 20 days in place of 60 days for new company. But for existing company it will be up to 60 days.

Section 7- Incorporation of Company- Requirement of Affidavit from Subscriber has been discontinued, Only Declaration from subscriber will work.

Section 12- Registered Office of the Company – Time limit of 15 days got replaced by 30     days for having registered office and intimation regarding change of registered office.

Section 21- Authentication of Documents- Apart from KMP any employee so authorized can authenticate documents on behalf of the company.

Section 26 – Matters to be stated in Prospectus- Prospectus shall state such information and financial information as specified by the SEBI in consultation with Central Govt.

Section 35- Civil Liability for Misstatement in Prospectus – To relieve Promoter and Director if they relied on expert, who is competent and given his consent and not withdrawn and has reasonable ground to believe.

Section 42- Private Placement – Important to note the time limit for allotment i.e. 15 days instead of 30 days. There is no right of renunciation; further money received would not be used until allotment filed with ROC.

Section 53- Prohibition on issue of shares at Discount- The companies can issue shares at DISCOUNT to its creditors against its debt under debt restructuring scheme in accordance with guidelines of RBI.

Section 54- Issue of Sweat Equity Shares – Now the bar of one-year post registration has been removed. It can be issued at any time post registration of the company.

Section 62- Further Issue of Shares- Now the provisions u/s 42 in respect of preferential offer has been brought in section itself there is no separate rules.

Section 73- Prohibition on acceptance of deposits from public- In place of 15%, now 20% of the amount of deposits, maturing during the following financial year will be deposited on or before the 30th day of April each year in a separate bank account as repayment reserve account. Defaulters made good can accept deposit post 5 yrs.

Section 74- Repayment of Deposits accepted before commencement of – Time limit for unpaid deposit, part thereof and interest repayment within 1 yr. got extended up to 3 yrs.

Section 77- Duty to register charges – It shall not apply to certain charges, as may be prescribed by the Central Government in consultation with the Reserve Bank of India.

Section 78- Application for Registration of charge- The Charge holder can file the charge on the expiry of 30 days from the creation of charge where a company fails to file so, in place of 300 days.

Section 82- Company to report satisfaction of charge- Time limit of filing got extended up to 300 days with payment of additional fees.

Section 89- Declaration in respect of beneficial interest in any share- There is no time limit now, ‘earlier it was 270 days’ for filing with additional fees.

Section 90- Investigation of beneficial ownership of shares in certain cases- Who directly or indirectly with association or holds beneficial interests, of not less than twenty- five per cent of voting right, control, and shares as prescribed. This section has been re-framed.

Section 92- Annual Return-Omitted MGT- 9 requirements only link of website is good. Omitted disclosing indebtedness and details. There is no time limit now, ‘earlier it was 270 days’ for filing with additional fees.

Section 93- Return to be filed with Registrar in case Promoters’ stake changes- Now return is not required filing for change in stake of promoters and top 10 shareholders.

Section 96- Annual General Meeting-‘AGM’ of unlisted company may be held at anyplace in India if consent is given is writing or by electronic mode by all the members in advance.

Section 100- Calling of Extraordinary General Meeting- EGM of wholly owned subsidiary of a company incorporated outside India can be held outside India otherwise in India only.

Section 101- Notice of meeting- Meeting with shorter notice AGM in writing or electronic mode by 95% in other general meetings by eligible majority representing 95% share capital or total voting power for that resolution.

Section 110- Postal Ballot- To allow companies which are mandatorily required to provide electronic voting facility, to transact items in general.

Section 117- Resolutions and Agreements to be filed AND Section 121- Report on annual general meeting-“Time limit of 270 days” within which resolutions and agreements, Report on AGM could be filed on payment of additional fee has been done away with.

Section 129- Financial Statement- Consolidation of the accounts of associate companies in addition to its subsidiaries in the same form and manner as that of its own in accordance with applicable accounting standards. Additional separate statement for subsidiary or associate.

Section 134- Financial Statement, Board’s report- CEO will sign the report, whether Director or not. Disclosures in financial statement are not required to reproduce. Extract of annual return link is only to mention. In place of polices again web link is to mention where it has been displayed on web. Omitted the responsibility of Board for carrying performance evaluation.

Section 135- Corporate Social Responsibility- Expenditure towards CSR will be calculated based on immediately preceding financial year instead of preceding 3 yrs. And two or more directors to constitute committee of CSR.

Section 137- Copy of Financial Statement to be filed with Registrar- It has been allowed the filing of unaudited financial statements of foreign subsidiary which is not required to get its accounts audited along with a declaration to that effect.

Section 139- Appointment of Auditors- Omitted the requirement related to ratification of appointment of auditors by members at every annual general meeting.

Section 141- Eligibility, Qualification and Disqualifications of Auditors- Person, who, directly or indirectly, renders any service referred to in section 144 to the company or its holding company or its subsidiary company will not be eligible for appointment as Auditor

Section 143- Powers and duties of auditors and auditing standards- It cover associate companies along with subsidiary companies with respect to right of auditors to have access to accounts and records. The auditor’s report will include whether internal financial controls with reference to financial statement are in place, not in respect of system.

Section 180- Restrictions on powers of board- it will include securities premium along with paid-up share capital and free reserves for calculation of maximum limits on borrowing powers of the Board.

Section 185- Loan to directors- Amended or replaced with new provisions. Please read with full context (to be published further in next article in full explanation and comparison).

Section 186- Loan and investment by company- Employee excluded, shareholder’s approval would not be required in case of wholly owned subsidiary(WOS) or Joint Venture Company etc.

Section 188- Related Party Transactions- The requirement related to restriction on voting by relatives in the general meeting shall not apply to a company in which ninety per cent or more members in numbers are relatives of promoters or related parties. Non-ratification of transaction shall be voidable at the option of the Board or shareholders as the case may be.

Section 194 & 195- Prohibition on Forward dealings in securities of company by director or Key Managerial Personnel, prohibition on Insider Trading– Omitted

Section 196- Appointment of Managing Director, Whole time director or Manager- Special resolution not required for appointing a person with age of more than 70 only majority votes is good enough. CG approval will only be required in case appointment is not as per Part I of Schedule V.

Section 197- Overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits- CG approval not required at the time of payment of remuneration more than 11% of net profits. Approval of shareholders through Special resolution, approval of FI in case of default, for paying remuneration more than the individual limits, earlier Ordinary resolution was required only.

  

IN case of loss or inadequacy remuneration in accordance with schedule V only, no CG approval any more.

Section 366- Companies capable of being registered- Allowed conversions of partnership firms, LLP, etc. with two or more partners into private companies. Currently they must have seven partners.

There are several other major and minor amendments like : -

·         Section 198- Calculation of profits,

·         Section 201- Forms of, and procedure in relation to, certain applications,

·         Section 216- Investigation of ownership of company,

·         Section 247- Valuation by Registered Valuers,

·         Section 379- Application of Act to foreign companies,

·         Section 435- Establishment of Special Courts,

·         Section 403- Fee for Filings, etc.

NOTE- The Companies Amendment Bill (2017) Published further in next upcoming Articles with full explanation and interpretation.

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Changes made in 25th GST Council Meeting

Changes made in 25th GST Council Meeting

The 25th GST Council Meeting was held at New Delhi on the 18th of January 2018. Though there is no GST return filing due date changes, various other measures were announced to improve ease of doing business. In addition to relaxation of GST rules and regulations, GST rates have also be reduced for various goods and services.

Penalty for Late Filing GST Return Reduced to Rs.50 – Rs.20 for NIL Return

The penalty for late filing of GST returns has been further reduced by the 25th GST Council Meeting. Now, any business that failed to file GSTR1 return, GSTR5 return or GSTR5A return will only have to pay a penalty of Rs.50 per day for default made.

In case of failure to file NIL GST return, the penalty has been reduced to just Rs.20 per day.

Cancellation of GST Registration

Persons who obtained GST registration voluntarily were previously barred from surrendering their GST registration before end of one year from date of registration. The rules have now been modified to allow cancellation of voluntary GST registration before 1 year.

Also, those who obtained GST registration mandatorily due to migration from VAT or Service Tax or Central Excise can cancel their GST registration before 31st March 2018.

E-Way Bill Introduced

The Government has begun rolling out the e-way bill mechanism on a trial basis through ewaybill.nic.in. Stakeholders can login to ewaybill.nic.in and generate, cancel or modify GST eway bill on a trial basis. Once the system is ready, the GST eway bill system will be made available on ewaybillgst.gov.in.

The Government rollout a nationwide GST eway bill system for interstate movement of goods from 1st Feb. 2018. The Government rollout eway bill system for intrastate movement of goods on later than 1st June 2018. However, no date has been announced by the Government mandating eway bill for intrastate movement of goods.

GST Rate Changes for Goods

The following are the GST rate changes for goods announced in the 25th GST Council Meeting:

GST Rate Reduced from 28% to 18%

• Old and used motor vehicles [medium and large cars and SUVs] on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him.
• Buses for use in public transport which exclusively run on bio-fuels. 

GST Rate Reduced from 28% to 12%

• All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him. 

GST Rate Reduced from 18% to 12%

• Sugar boiled confectionary
• Drinking water packed in 20 litters bottles
• Fertilizer grade Phosphoric acid
• Bio-diesel
• Bio-pesticides
• Bamboo wood building joinery
• Drip irrigation system including laterals, sprinklers
• Mechanical Sprayer 

GST Rate Reduced from 18% to 5%

• Kernel Powder
• Mehendi paste in cones
• LPG supplied for supply to household domestic consumers by private LPG distributors
• Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules,
• Raw material and consumables required for launch vehicles and satellites and payloads.

GST Rate Reduced from 12% to 5%

• Articles of straw, of esparto or of other plaiting materials,
• Basketware and wickerwork
• Velvet fabric with no refund of unutilised input tax credit. 

GST Rate Reduced from 3% to 0.25%

• Diamonds and precious stones

GST Rate Change to NIL

• Vibhut
• Parts and accessories for manufacture of hearing aids.
• De-oiled rice bran
• GST Rate Increased from 12% to 18%
• Cigarette filter rods

GST Rate Increased from Nil to 5%

• Rice bran (other than de-oiled rice bran)

GST Rate Changes for Services

The following are the GST rate changes or exemptions for services announced in the 25th GST Council Meeting:

• To extend GST exemption on Viability Gap Funding (VGF) for a period of 3 years from the date of commencement of RCS airport from the present period of one year.

• To exempt supply of services by way of providing information under RTI Act, 2005 from GST.

• To exempt legal services provided to Government, Local Authority, Governmental Authority and Government Entity.

• To reduce GST rate on construction of metro and monorail projects (construction, erection, commissioning or installation of original works) from 18% to 12%.

• To levy GST on the small housekeeping service providers, notified under section 9 (5) of GST Act, who provide housekeeping service through ECO, @ 5% without ITC.

• To reduce GST rate on tailoring service from 18% to 5%.

• To reduce GST rate on services by way of admission to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet, from 28% to 18%.

To grant following exemptions:

1.  To exempt service by way of  transportation of goods from India to a place outside India by air;
2. To exempt service by way of transportation of goods from India to a place outside India by sea and provide that value of such service may be excluded from the value of exempted services for the purpose of reversal of ITC.

NOTE-The above exemptions may be granted upto 30th September, 2018.

• To exempt services provided by  the Naval Insurance Group Fund by way of  Life Insurance to personnel of Coast Guard under the  Group Insurance Scheme of the Central Government retrospectively w.e.f. 1.7.2017.
• To exempt IGST payable under section 5(1) of the IGST Act, 2017 on supply of services covered by item 5(c) of Schedule II of the CGST Act, 2017 to the extent of  aggregate of the duties and taxes leviable  under section 3(7) of the Customs Tariff Act, 1975 read with sections 5 & 7 of IGST Act, 2017 on part of consideration declared under section 14(1) of the Customs Act, 1962 towards royalty and license fee includible in transaction value as specified under Rule 10 (c) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.
• To allow ITC of input services in the same line of business at the GST rate of 5% in case of tour operator service.
• To reduce GST rate (from 18% to 12%) on the Works Contract Services (WCS) provided by sub-contractor to the main contractor providing WCS to Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity, which attract GST of 12%. Likewise, WCS attracting 5% GST, their sub-contractor would also be liable @ 5%.
• To enhance the exemption limit of Rs 5000/- per month per member to Rs 7500/- in respect of services provided by Resident Welfare Association (unincorporated or nonprofit entity) to its members against their individual contribution.
• To reduce GST rate on transportation of petroleum crude and petroleum products (MS, HSD, ATF) from 18% to 5% without ITC and 12% with ITC
• To exempt dollar denominated services provided by financial intermediaries located in IFSC SEZ, which have been deemed to be outside India under the various regulations by RBI, IRDAI, SEBI or any financial regulatory authority, to a person outside India.
• To  exempt  (a) services by government or local authority to governmental authority or government entity, by way of lease of land, and (b) supply of land or undivided share of land by way of lease or sub lease where such supply is a part of  specified composite supply of construction of flats etc. and   to carry out suitable amendment in the provision relating to valuation of construction service involving transfer of land or undivided share of land, so as to ensure that buyers pay the  same effective  rate of GST on property built on leasehold and freehold land.
• To amend entry 3 of notification No. 12/2017-CT(R) so as to exempt pure services provided to Govt. entity.
• To expand pure services exemption under S. No. 3 of 12/2017-C.T. (Rate) so as to include composite supply involving predominantly supply of services i.e. upto 25% of supply of goods.
• To reduce job work services rate for manufacture of leather goods (Chapter 42) and footwear (Chapter 64) to 5%.
• To exempt services relating to admission to, or conduct of examination provided to all educational institutions, as defined in the notification.
• To exempt services by educational institution by way of conduct of entrance examination against consideration in the form of entrance fee.
• To enhance the limit to Rs 2 lakh against Sl. No. 36 of exemption notification No. 12/2017-C.T. (Rate) which exempts services of life insurance business provided under life micro insurance product approved by IRDAI upto maximum amount of cover of Rs. 50,000.
• To exempt reinsurance services in respect of insurance schemes exempted under S.Nos. 35 and 36 of notification No. 12/2017-CT (Rate).[It is expected that the premium amount charged from the government/insured in respect of future insurance services is reduced.]
• To increase threshold limit for exemption under entry No. 80 of Notification No. 12/2017-C.T. (Rate) for all the theatrical performances like Music, Dance, Drama, Orchestra, Folk or Classical Arts and all other such activities in any Indian language in theatre GST from Rs.250 to 500 per person and to also extend the threshold exemption to services by way of admission to a planetarium.
• To reduce GST on Common Effluent Treatment Plants services of treatment of effluents, from 18% to 12%.
• To exempt services by way of fumigation in a warehouse of agricultural produce.
• To reduce GST to 12% in respect of mining or exploration services of petroleum crude and natural gas and for drilling services in respect of the said goods.
•  To exempt subscription of online educational journals/periodicals by educational institutions who provide degree recognized by any law from GST.
• To exempt the service provided by way of renting of transport vehicles provided to a person providing services of transportation of students, faculty and staff to an educational institution providing education upto higher secondary or equivalent.
• To extend the concessional rate of GST on houses constructed/ acquired under the Credit Linked Subsidy Scheme for Economically Weaker Section (EWS) / Lower Income Group (LIG) / Middle Income Group-1 (MlG-1) / Middle Income Group-2 (MlG-2) under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana (Urban) and low-cost houses up to a carpet area of 60 square metres per house in a housing project which has been given infrastructure status, as proposed by Ministry of Housing & Urban Affairs, under the same concessional rate.
• To tax time charter services at GST rate of 5%, that is at the same rate as applicable to voyage charter or bare boat charter, with the same conditions.
• To levy concessional GST @12% on the services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of building used for providing (for instance, centralized cooking or distributing) mid-day meal scheme by an entity registered under section 12AA of IT Act.
• To exempt services provided by and to FédérationInternationale de Football Association (FIFA) and its subsidiaries directly or indirectly related to any of the events under FIFA U-20 World Cup in case the said event is hosted by India.
• To exempt government’s share of profit petroleum from GST and to clarify that cost petroleum is not taxable.

Major Clarifications

In addition the above GST rate changes, the GST Council has also clarified the following matters:

Health Care Services

The GST Council has clarified that services provided by senior doctors / consultants / technicians hired by the hospitals, whether employees or not is exempt from GST.

Also, the entire amount charged by hospitals for healthcare services from the patients including the retention money and the fee/payments made to the doctors is exempt from GST. And food supplied to the in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare and is not separately taxable under GST. However, other supplies of food by a hospital to patients (not admitted) or their attendants or visitors is taxable under GST.

E-WAY BILL

E-WAY BILL

E-Way Bill is an electronic way bill for movement of goods which can be generated for the transport of goods of more than Rs 50,000/- in value made by a registered. E-Way bill generated through E-Way Bill Portal.

OBJECTIVES OF E-WAY BILL

Ø  Single e-way bill for hassle-free movement of goods throughout country.

Ø  No need for separate transit passes in each state for movement of goods.

Ø  Shift from departmental-policing model to self-declaration model for movement of goods.

BENEFITS

Ø  Taxpayers/transporters need not visit any  Tax Office/checkposts for generation of e-way bill/movement of goods across states.

Ø  No waiting time at checkposts and faster movement of goods thereby optimum use of vehicles/resources, since there are no checkposts in GST regime.

Ø  User-friendly e-way bill system.

Ø  Easy and quick generation of e-way bill.

Ø  Checks and balances for smooth tax administration and process simplification for easier verification of e-way bil by Tax Officers.

FEATURES OF THE E-WAY BILL PORTAL

Ø  User can create masters of his customers, suppliers & products for easy generation of e-way bill.

Ø  User can monitor e-way bills generated on his account/behalf.

Ø  Multiple modes for e-way bill for generation for ease of use.

Ø  User can create sub users and roles on portal for generation of e-way bill.

Ø  Alert will be sent to users via mail and sms on registered mail id/mobile number.

Ø  Vehicle number can be entered either by the supplier/recipient of goods who generates e-way bills or the transporter.

Ø  QR code will be printed on each e-way bill for ease of seeing details.

Ø  Consolidated e-way bill can be generated for vehicle carrying multiple consignments.

MODES OF GENERATION OF E-WAY BILL

Ø  Web- Online using browser on Laptop/Desktop/Phone etc.

Ø  Android based mobile App on mobile phones.

Ø  Via SMS through registered mobile number.

Ø  Via API(Application Program Interface) i.e. integration of IT system of user with e-way bill system for generation of e-way bill.

Ø  Tool based bulk generation of e-way bills.

Ø  Third-party based system of Suvidha Providers.  

VALIDITY OF E-WAY BILL

An e-way bill is valid for periods which are based on the distance travelled by the goods. Validity is calculated from the date and time of generation of e-way bill. An E-Way bill with validity of 1Day is issued for less than 100 kms and for every 100 kms or part thereof an additional 1Day is provided.

DOCUMENTS REQUIRED TO GENERATE E-WAY BILL

Ø  Invoice/ Bill of Supply/ Challan related to the consignment of goods.

Ø  Transport by road – Transporter ID or Vehicle number.

Ø  Transport by rail, air, or ship – Transporter ID, Transport document number, and date on the document.

CASES WHEN E-WAY BILL IS NOT REQUIRED

Ø  In the following cases it is not necessary to generate e-Way Bill:

Ø  The mode of transport is non-motor vehicle

Ø  Goods transported from port, airport, air cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs.

Ø  The distance between the consigner or consignee and the transporter is less than 10 Kms and transport is within the same state.

Ø  Transport of specified goods

PERSON LIABLE  TO  GENERATE  E-WAY BILL

Registered Person – E-way bill must be generated when there is a movement of goods of more than Rs 50,000/- in value though a registered person generate and carry e-way bill even if the value of goods is less than Rs 50,000/-

Unregistered Persons – Unregistered persons are also required to generate e-Way Bill. However, where a supply is made by an unregistered person to a registered person then the receiver have to met with all the compliances as if a supplier( means E-way bill must be generated by such recipient).

Transporter – Transporters carrying goods by road, air, rail, etc. also need to generate e-Way Bill if the supplier has not generated an e-Way Bill.