17 Jan 2018

Indore: E-way Bill likely to begin trial run today, Between January 16 and 31, no penalty would be charged, By- Free Press

Indore: E-way Bill (EWB) mechanism, a vital component of Goods and Service Tax (GST) regime which was to be launched in state on Tuesday for a trial run, will now be rolled out on Wednesday. Since, it was a trial run of the new system, which will be officially implemented from February 1, no penalty will be charged from the errant users.

EWB had to be implemented in the country from July 1, 2017, the day GST was rolled out; but due to complexity in compliance of the new indirect tax regime, EWB was postponed. The objective of the move was to give ease to taxpayers in removing the complexity of the GST and also not to put burden of the new mechanism.

Official sources at the State Goods and Service Tax (SGST) department informed that in order to make tax payers and all stake holders of the EWB familiar with the new mechanism, the Bill was to be launched as a trial basis on Tuesday but it could not happen as EWB portal was not showing the name of Madhya Pradesh. Till late evening of Tuesday data from MP could not be uploaded on EWB portal as well, they said.

Sources said that so far about 15 states are being incorporated in the EWB portal and by Wednesday afternoon MP may also be incorporated.

EWB: A means to check tax evasion

In line of the goods transport permit of VAT regime to check the tax evasion, EWB system is being placed in the GST regime. Under the regime, on transportation of goods worth more than Rs 50,000, a transporter, goods sender-receiver and driver will have to keep the EWB and in case of demand by any official, a driver will have to show it to them. This will be generated online through a EWB portal by feeding the required information. GST council has made it mandatory to carry EWB in case of carrying goods more than 10 km. The validity of the EWB is also fixed. For 100 km EWB will be valid for 24 hours and after that for every 100 km an extra day will be offered. If goods are not delivered in the stipulated time, trader will have to generate new EWB. SGST department has authorised officials to check EWB. However, between January 16 and 31, no penalty would be charged, but after that from February 1, in suspicion of the tax evasion, 100% penalty as per worth of the goods will be charged. Certain goods are exempted from levying the GST, but for carrying such goods EWB have to be generated and in the absence of its flat Rs 25,000 penalty would be imposed.

As per schedule, the EWB system had to be started on trial basis from Tuesday, but EWB portal was not displaying the name of the state. It’s likely to incorporate Madhya Pradesh in the portal by Wednesday afternoon , n JP Saraf CA, GST Consultant…