Government defers the launch of E-way bill, trial to continue

Posted by Daily Shipping Times on 05-02-2018        Tweet

MUMBAI: With the E-way bill generation platform facing technical glitches, the Governmen said it is extending the trial period for e-way bill. However, the Government has not clarified how long the trial will run. "In view of difficulties faced by the trade in generating e-way bill due to initial tech glitches, it has been decided to extend the trial phase for generation of e-way bill, both for inter and intra-State movement of goods. It shall be made compulsory from a date to be announced," said a Governmnet tweet.

E-way bill became mandatory from February 1, 2018  but throughout the day there have reports of the platform crashing. Some companies have complained that moving goods had come to a complete standstill.

The trial period of E-way bill had started on January 15.

"The GST server was unresponsive since morning and gave unnerving moments to the logistics teams of the taxpayers who were apprehensive on movement of goods without E-way bill. Availability of system 24X7 on real time basis is crucial, unlike monthly return filing system. Otherwise it will either result in non compliance of law or restricting the trade," says KPMG India, Partner, Priyajit Ghosh.

Pratik Jain, Partner & Leader, Indirect Tax - PwC India says this is precisely what Industry was concerned about. "It's good that Government has been quick to defer it. It might be better to first start with E-way bill only for interstate transactions before moving to Intra State. Hopefully, the trial period will also provide the Government an opportunity to test the system and fix the technical glitches," says Jain.

However, the notification regarding the extension of trial has not yet been generated and taxpayers are still cagey about transporting goods. Since each state has to come out with its own notification first, this may take some time.

E-way bill (FORM GST EWB-01) is an electronic document (available to supplier / recipient / transporter) generated on the common portal evidencing movement of goods of consignment value more than Rs. 50000/-. It has two Components-Part A comprising of details of GSTIN of supplier & recipient, place of delivery (indicating PIN Code also), document (Tax invoice, Bill of Supply, Delivery Challan or Bill of Entry) number and date, value of goods, HSN code, and reasons for transportation.

Part B comprises of transport details - transport document number (Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number) and Vehicle number for road.