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GST E-way bills: Another compliance burden on the way…




Mumbai, April 15: Has CBEC added another burden on the compliance of GST by proposing “e-way bills” in the movement of goods worth more than Rs 50,000?

Let’s find the answer below.

The CBEC on Thursday detailed the proposal which made it mandatory for the movement of all goods above Rs 50,000 within the state or across states to incur online registration of the consignment prior the movement and secure an ‘e-way bill’ so that tax officials can inspect them anytime during the transit and check tax evasion.

However the industry experts say that the multi-layered process would make transport of goods a cumbersome, delayed and costly affair.

The draft rules that were outlined on Thursday also say that the transit bills will also be required for transport of goods that are outside of the GST ambit including petrol or diesel and agricultural products.

The practical problem of implementing the e way bill is the fact that it would require participation of three parties– the supplier, the transporter and the recipient. All of them would be required to submit their acceptance or rejection of the consignment by the e-way bill within a short span.

The TOI quotes Prashant Deshpande, indirect tax partner at Deloitte-India who says, “The introduction of e-way bills defeats the design of GST, which is a self-policing mechanism. If at all, e-way bills could have been introduced only for specific goods where past experience reflected tax evasion.”

To simplify the process let’s understand how the e way bill be generated? The consignee or supplier would upload details of consignment over Rs 50,000 onto the GSTN portal. If goods are transported by a transport company, the information uploaded by the sender will be updated by the transport company to create a final e-way bill. Now the final bill will be carried along the goods.

After the e-way bill is generated on the GSTN portal, a unique EBN or e-way bill number will be provided to the supplier, the transporter and the recipient of goods.

The industry experts have cited many issues with the compliance of E-way bills:

  1. Issues of lorry transporters
    “At times, a lorry may not have a pan-India permit, or there could be unforeseen circumstances such as an accident. Thus, in the course of transit, goods would be transferred from one vehicle to another. In such circumstances, the transporter has to create a new e-way bill on the GSTN portal, before further transit. A lot rides on the transporter’s ability to be able to keep up with the new rules. It also puts an additional load on the GSTN portal,”
    says Sunil Gabhawalla, chartered accountant and GST specialist.
  2. Multiple consignments
    Sometimes multiple consignments are transported in one vehicle and in such cases a consolidated e way bill would be required to be generated. The transporter would be required to mention serial number of each e-way bills in respect of each such consignment on the GSTN portal.

An industry expert says to TOI, “A consolidated e-way bill in the required form is to be generated by the transporter prior to the movement of goods — this will make tracking cumbersome for all parties involved.”

  1. The validity

Next practical issue pertains to the period of the e-way bill. It is indeed the great cause of concern as it is not only strict but impractical says industry. As per the notification, for distance less than 100 kms, the validity period is mere one day. While maximum validity is 15 days for the distance more than 1,000 kms.

“The timeline is very strict and impractical — exigencies can arise in the course of transport entailing delays in transit beyond the specified number of days. The draft rules permit physical verification of the goods in transit. Thus, a stale e-way bill could result in detention of the vehicle,
” adds the Transporter.

  1. The issues for buyer

After the consignment is reached the destination, the recipient would be required to communicate its acceptance or rejection covered by the e-way bill, and that too within 72 hours, else it assumed that the recipient has accepted the details.

“There was no need for this additional layer of verification of e-way bills by the buyer as the GSTN system, which operates on a matching concept, already captures such a requirement. The supplier is to provide outward supply details in GST Returns -1, by the 10th of each subsequent month. Details are auto-populated on the GSTN portal and made available to the recipient in GST return 2A for verification within a stipulated time. Changes, if any, on verification, are again to be accepted by the supplier,” explains another transporter.

Last but not the least, a buyer will be required to keep checking the GSTN portal. Plus, if there is a rejection an erroneous e-way bill will result in legal and tax consequences for the buyer.

Public comments on the drafts are invited until April 21. The GST council has announced that it will finalise the draft rules in their May meet.

Wefornews Bureau


PNB claims expected recovery of Rs 1,800 cr from “Mission Gandhigiri”



Punjab National Bank
Punjab National Bank (PNB). (File Photo: IANS)

New Delhi, April 20 (IANS) State-run lender Punjab National Bank is expected to recover around Rs 1,800 crore from its non-performing assets (NPAs) recovery mechanism — “Mission Gandhigiri” — which will soon complete one year of operation.

A senior bank official told IANS the mission, was launched in May 2017, had consistently delivered positive results with an average recovery of Rs 150 crore from the initiative.

“The mission was born out of the need to name and shame defaulters to increase societal pressure and urge them to pay back. Mission Gandhigiri has a dedicated recovery team across all circles of the bank,” the official, who did not want to be named, told IANS.

Accordingly, the passive recovery mechanism entails the team members to “visit the borrowers’ office or residence and sit their silently with placards that have hard-hitting messages such as ‘It is public money, please repay the loans’.”

On the legal side of the operation, following the government’s directions regarding wilful defaulters, the bank has declared 1,084 wilful defaulters.

“Due to PNB’s aggressive stance towards wilful defaulters, 150 passports have been impounded over the past few months,” the official said. Additionally, over the last 9 months, the bank has also lodged 37 FIRs against defaulters.

The bank is also leveraging data analytics for loan recovery and risk management.

“We have tied up with a leading credit agency and with the help of a third-party expert analytics, we will now be able to get access to contact information of PNB defaulters who have good credit record with other lenders,” the official said.

“This partnership is a part of the larger strategy to deploy technology to strengthen internal systems. This partnership will not only help the bank with loan recovery but will also help identify and automate profitable lending strategies and minimise credit and fraud risk,” the official said.

The bank has also recently started works towards “improving internal systems by incorporating analytics and Artificial Intelligence for reconciliation of accounts”.

In addition, two special OTS (One-Time Settlement) schemes have helped the bank to accelerate NPA recovery.

“From an average of recovering loan amount from 70,000-80,000 NPA accounts in a year, this move has resulted in recovery in 225,000 NPA accounts over a span of 10 months,” the official added.

“These schemes apply to small NPA accounts helping defaulters come out of debt.”


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Key Indian equity indices open flat



Mumbai, April 20: The key Indian equity indices opened on a flat note on Friday.

At 9.17 a.m., the wider Nifty50 of the National Stock Exchange (NSE) traded at 10,558.15 points, down 7.15 points or 0.07 per cent from the previous close at 10,565.30 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 34,434.14 points, traded at 34,414.73 points (9.17 a.m.) — down 12.56 points or 0.04 per cent — from its previous close at 34,427.29 points on Thursday.

The BSE market breadth so far was bearish with 710 declines and 507 advances.


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Key equity markets rise on Asian cues, supportive metal, IT stocks



Mumbai, April 19:  The key Indian equity markets traded in the positive territory on Thursday afternoon tracking strong cues from the Asian markets.

Heavy buying in the metal, IT and capital goods stocks also helped the market sentiment to remain positive.

So far, the S&P BSE metal index surged around 558.59 points, followed by the IT stocks which edged up by 125.58 points and capital goods stocks, by 120.60 points.

At 1.20 p.m., the wider Nifty50 on the National Stock Exchange (NSE) traded higher by 33.40 points or 0.32 per cent at 10,559.60 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 34,403.67 points, traded at 34,412.41 points (1.20 p.m.) — up 80.73 points or 0.24 per cent from its previous session’s close.

The Sensex has so far touched a high of 34,478.82 points and a low of 34,358.91 during the intra-day trade.

The BSE market breadth was bullish with 1,265 advances and 1,082 declines.

“Markets gained in early morning trade as global Asian indices traded in green, following the US markets which closed with one per cent up-move,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.

On Wednesday, profit booking, along with heavy selling pressure in the banking sector stock, led the key Indian equity indices to break their nine-day gaining streak and end in red.

The Nifty50 fell by 22.50 points or 0.21 per cent to close at 10,526.20 points on Wednesday, and the Sensex closed at 34,331.68 points — down 63.38 points or 0.18 per cent.

On Thursday, the major gainers on the BSE were Tata Steel, Yes Bank, Bharti Airtel, Tata Consultancy Services and ONGC while Axis Bank, HDFC, Sun Pharma, Coal India and ICICI Bank were among the top losers.

On NSE, the top gainers were Hindalco, Vedanta and Tata Steel and major losers were BPCL, Hindustan Petroleum and Indian Oil Corp.


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