Connect with us

Business

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

Published

on

GST

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

Business

Global cues subdue equity indices; metal stocks fall

Published

on

SENSEX-

Mumbai, June 18: Weak international markets and concerns of a resurgent global trade war depressed the key Indian equity indices on Monday.

According to market analysts, heavy selling was witnessed in the metal, consumer durables and IT stocks.

At 3.30 p.m., the wider Nifty50 of the National Stock Exchange (NSE) provisionally closed at 10,799.85 points, down 17.85 points or 0.17 per cent from the previous close of 10,817.70 points.

Similarly, the barometer 30-scrip Sensitive Index (Sensex) of the BSE, which had opened at 35,698.43 points, closed at 35,548.26 points (3.30 p.m.) — down 73.88 points or 0.21 per cent from its previous session’s close of 35,622.14 points.

The Sensex touched a high of 35,721.55 points and a low of 35,518.73 points. The BSE market breadth was bearish with 1,709 declines and 934 advances.

The top gainers on the Sensex were ICICI Bank, Tata Motors, Tata Motors (DVR), Bajaj Auto and Maruti Suzuki whereas Vedanta, Kotak Bank, Bharti Airtel, Coal India and Axis Bank were the major losers.

On the NSE, Hindustan Petroleum, Indian Oil Corp and ICICI Bank were the highest gainers while, Hindalco Industries, Tata Steel and Vedanta lost the most.

IANS

Continue Reading

Business

Audi CEO ‘Rupert Stadler’ arrested in diesel emissions probe

Published

on

Audi CEO
Audi CEO Rupert Stadler (File Photo)

Madrid, June 18: Rupert Stadler, the Chief Executive of German carmaker Audi, was arrested on Monday in connection with an investigation into the diesel emissions scandal.

German prosecutors named Stadler and one other Audi executive as suspects for fraud and false advertisement in the car maker’s continuing emissions scandal, Efe news reported.

Nicolai Laude, a spokesperson for Audi’s parent company Volkswagen, confirmed that Stadler had been arrested but he declined to comment on the investigation. He said the company’s supervisory board would soon discuss the matter.

“The principle of the presumption of innocence continues to apply to Stadler,” he added.

Munich prosecutors said they had acted because of risk that Stadler might seek to suppress evidence, CNN said. They added that Stadler would be questioned by Wednesday, once he had spoken to his lawyers.

Shares in Volkswagen dropped by 2 per cent in Frankfurt. Prosecutors said last week they had searched Stadler’s home for evidence as part of an investigation that has been underway for over a year.

The arrest came just days after Germany imposed a $1.2 billion penalty on Volkswagen for rigging diesel engine emissions worldwide.

Volkswagen first admitted in 2015 it had rigged millions of diesel engines to cheat on emissions tests. Diesel cars from Volkswagen and its Audi subsidiary cheated on clean air rules with software that made emissions look less toxic than they actually were.

Martin Winterkorn, the former chief executive officer of Volkswagen, was indicted in May by US prosecutors. He was charged with wire fraud and conspiracy to defraud American customers and violate the Clean Air Act.

IANS

Continue Reading

Business

Market Review: Higher industrial output, Kim-Trump meet lift equity indices

Published

on

Sensex Nifty Equity

Mumbai, June 16: Healthy industrial production data and an encouraging geo-political scenario aided the key Indian equity indices to rise for the fourth consecutive week.

The gains in the week ended Friday, however, were limited by a number of global factors including the interest rate hike in the US, and US President Donald Trump’s approval to tariffs on $50 billion of Chinese exports.

Additionally, domestic factors such as a rise in retail and wholesale inflation also arrested the gains.

Index-wise, the barometer 30-scrip Sensitive Index (Sensex) of the BSE rose by 178.47 points or 0.50 per cent to close at 35,622.14 points on a weekly basis.

The wider Nifty50 of the NSE closed the week’s trade at 10,817.70 points — up 50.05 points or 0.46 per cent — from its previous close.

According to analysts, market breadth was positive in only two of the five trading sessions.

“Markets ended the week with modest gains after a sharp bounce back from the lows of 10,755 points (Nifty50),” said Deepak Jasani, Head of Retail Research at HDFC Securities.

Hem Securities’ Director Prateek Jain said: “Last week indices extended their winning streak to the fourth consecutive week. The upswing was seen despite retail inflation rising to 4.9 per cent for the month of May compared to the previous month.”

According to Rahul Sharma, Senior Research Analyst at Equity99, “It was an eventful week on the global front too, with US President Donald Trump and North Korean leader Kim Jong Un signing a joint agreement for the denuclearisation of the Korean Peninsula.”

“Further, the Fed (US Federal Reserve) has again done what it was expected to do as it raised benchmark interest rates hinting at a little more aggression in tightening monetary policy this year,” Sharma said.

“Another event, which kept investors sentiments on the toe was reports that President Donald Trump’s administration has cleared tariffs on tens of billions of dollars’ worth of Chinese goods”

On the currency front, the rupee closed at 68.02 against the US dollar depreciating by 51 paise from its previous week’s close of 67.51 per greenback.

In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrip worth Rs 5,294 crore, while the domestic institutional investors purchased stocks worth Rs 4,014.25 crore during the week.

Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 3,071.85 crore, or $455.4 million, in the week ended on June 15.

Sectorally, the top gainers were the pharma, IT, energy and PSU bank indices and the top losers were metal, infrastructure and realty indices, Jasani told IANS.

The top weekly Sensex gainers were Dr Reddy’s Lab (up 13.97 per cent at Rs 2,351.10); Sun Pharma (up 8.11 per cent at Rs 571.05); Tata Consultancy Services (up 5.33 per cent at Rs 1,841.45); IndusInd Bank (up 4.01 per cent at Rs 1,965.85); and Reliance Industries (up 3.10 per cent at Rs 1,013.85 per share).

The major losers were Tata Steel (down 5.60 per cent at Rs 565.95); ONGC (down 4.64 per cent at Rs 165.45); Coal India (down 3.74 per cent at Rs 279.05); NTPC (down 3.40 per cent at Rs 156.05); and Tata Motors (DVR) (down 3.30 per cent at Rs 180.05 per share).

IANS

Continue Reading
Advertisement

Most Popular