When is E-way bill not required – In India, the GST legislation was enforced to redress a lot of the troubles which the former law had. Among the biggest issues being the absence of accountability in the method with regards to both taxpayers and the Government. Under Gst law, one of the Government’s techniques of ensuring accountability is by digitizing the operation. The Eway bill is one of those initiatives.
Documents to be carried in a situation where E-way bill is not needed
The Eway bill would serve as an important instrument for monitoring tax evasion at different points and tracking the flow of commodities. However, if it is not needed to be produced, the carrier must ensure that a duplicate of the tax invoice or even the bill of supply produced in compliance with the provisions of the law is carried.
Below is an example of just how E-way bill works as a tax evasion mechanism.
If any raw material is transferred from Mumbai to Delhi where it is refined into final products and sold, Delhi is the State that should obtain the revenue since it is the state of consumption.
However, if half of the final goods are shipped to some other state, say Gujrat, and then sold there, the revenue also belongs to Gujrat. That’s where the Eway bill came into effect. It allows us to have a better picture of the flow of products throughout every state and hence helps deter tax evasion.
The Eway bill is also an essential document that promotes the transfer of commodities from one location to another. This ‘document’ could be produced electronically by uploading the related information, including the type of product, HSN code, quantity and taxable value, particulars of the receiver, information of the transporter, vehicle number, etc. Before the transfer of products starts, an Eway bill should be produced.
It is also pointless to claim that if a taxpayer is subject to mandatory requirements, the products must be covered by the Eway bill on any and all occasions. If that’s not the case, he shall be allowed to bear the cop of the tax invoice or even the valid document provided for in the GST laws.
Specific goods excluded from the Eway Bill
- The transport of such goods as set out in the annexure to the laws as set out below.
- Liquefied petroleum gas for residential and non-domestic exempted groups of consumers.
- The kerosene oil is marketed through PDS.
- Postal luggage transported by the Post Office.
- Real or cultivated pearls and valuable or semi-precious stones; valuable metals and metals clad with valuable metals
- Jewellery, goldsmith’s and silversmith’s wares as well as other articles.
- Used Personal and household effects.
- Unworked and worked Coral.
- Goods to be delivered are alcoholic liquor for human usage, crude oil, high-speed gasoline, petrol, natural gas or jet turbine fuel.
- Goods being shipped shall not be classified as supplies in compliance with Schedule III of the Act. (Schedule III comprises of operations which do not include the procurement of goods or services, such as the service of an employee to an employer in the context of his or her jobs, the duties conducted by MP, MLA, etc.)
- Goods shipped are unloaded cargo containers.
- Goods, other than de-oiled cake, to be transported are stated in Notice No. 2/2017 – Central Tax (Rate) dated 28 June 2017. Some of the goods mentioned in the aforementioned notice are as follows.
- Curd, lassi, buttermilk
- Fresh milk and pasteurized milk not containing added sugar or other sweetening matter
- Unprocessed tea leaves and unroasted coffee beans
- Live animals, plants and trees
- Unbranded rice and wheat flour
- Educational items (books, maps, periodicals)
- Goods excluded under Notice No. 7/2017-Central Tax (Rate) dating 28 June 2017 and Notice No. 26/2017-Central Tax (Rate) dated 21 September 2017.
Unique transactions that don’t need an e-way bill
Other transactional situations where e-way bills are not needed.
- Eway bill is not mandatory for products with a volume under ₹50,000.
- Whether goods are carried by way of a non-motorized conveyance (Ex. Horse carts or manual carts).
- When the goods are being transported.
- From the port, the airport, the air cargo complex and the land customs station to the inland container depot (ICD) or the container freight station (CFS) for customs clearance.
- From ICD or CFS to customs port, airport, air freight, etc. under customs contract.
- From one customs port/station to the next under a customs bond.
- Goods shipped under customs control and under the customs seal.
- Goods delivered in the notified region
- Goods transported are transited from/to Nepal/Bhutan.
- Whether goods are delivered to a weighbridge in 20 km and returned to the site of operation, they shall be protected by the Delivery Challan.
- Where the government or local authority transfer goods by train as a consignor.
- Goods transported are to/from the Ministry of Defense.
Thus, if a taxpayer comes into any of the sections listed above, he or she would not be forced to make an E-way payment. While taxpayers who come under the boundaries of the E-way Bill exception are relieved of this compliance, they must ensure that all records, such as invoices and bills of payment, conform with the laws and regulations.