Accounts and records - E-way Bill Flashcards
What is the definition of the term voucher as per section 2(118) of the act?
means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument [Section 2(118)].
Who is required to maintain his books of accounts and at which place? [Section 35(1) read with rule 56(7) and 56(10)]
Every registered person shall keep and maintain, his books of accounts at his principal place of business (hereinafter referred to as PPoB) and books
of account relating to additional place of business (hereinafter referred to as APoB) [as mentioned in the certificate of registration].
Where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business.
What should be the place where the accounts and records has to be maintained in case of supply of goods through an auction like tea, rubber and coffee? what should be the action when there is a difficulty faced by the principal and auctioneer in maintaining books of accounts at each and every APoB? and what is the ITC eligibility for these cases mentioned?
- it has been clarified that in such cases, the principal and the auctioneer may declare the warehouses, where such goods are stored, as their APoB.
- The buyer is also required to disclose such warehouse as his APoB if he wants to store the goods purchased through auction in such warehouses.
- Further, the principal and the auctioneer may maintain the books of accounts relating to APoB at their PPoB instead of such APoB. Such principal or auctioneer shall intimate their jurisdictional proper officer in writing about the maintenance of books of accounts relating to APoB at their PPoB.
- ITC availment: It is further clarified that the principal and the auctioneer for the purpose of auction of tea, coffee, rubber etc., or the principal and the auctioneer for the purpose of supply of tea through a private treaty, shall be eligible to avail ITC subject to the fulfilment of other provisions of the CGST
What are the basic accounts and records to be maintained under the provisions of section 35(1) and what are some additional records which are prescribed under the rules?
A true and correct account of following is to be maintained:
(a) production or manufacture of goods;
(b) inward and outward supply of goods or services or both;
(c) stock of goods;
(d) input tax credit availed;
(e) output tax payable and paid
(f) such other particulars as may be prescribed [Section 35(1)].
What are the records to be maintained by an agent under rule 56(11)?
What are the Records to be maintained by owner or operator of godown or warehouse and transporters [Section 35(2) read with rule 58]?
- Every owner or operator of warehouse or godown or any other place used for storage of goods and every transporter, irrespective of whether he is a registered person or not, shall maintain records of the consigner, consignee and other relevant details of the goods in such manner as may be prescribed.
- Enrolment, if not already registered in GST: If such persons are not already registered, they shall obtain a unique enrollment number by applying electronically at the GST Common Portal. The person enrolled as aforesaid in any other State or Union territory shall be deemed to be enrolled in the State or Union territory.
How the accounts and records will be maintained? [Second proviso to section 35(1) read with rule 56(7), (8), (9), (15), (16) and (18) and rule 57]
- Records may be in electronic form - The registered person may keep and maintain such accounts and other particulars in electronic form stored on any electronic device and record so maintained shall be authenticated by means of a digital signature.
- Proper electronic back-up of records shall be maintained and preserved in such manner that, in the event of destruction of such records due to accidents or natural causes, the information can be restored within a reasonable period of time.
- registered person maintaining electronic records shall produce, on demand, the relevant records or documents, duly authenticated by him, in hard copy or in any electronically readable format(demand, provide the details of such files, passwords of such files and explanation for codes used, where necessary, for access and any other information which is required for such access along with a sample copy in print form of the information stored in such files).
- No entry to be erased/overwritten - See Image
What is the requirement of Audit of accounts as per Section 35(5) read along with section 44(2) and rule 80?
- Every registered person must get his accounts audited by a Chartered Accountant or a Cost Accountant if his aggregate turnover during a FY exceeds ` 2 crores.
- However, the books of accounts of the Central/ State Government or local authority would not be subject to audit by a Chartered Accountant/ Cost Accountant if the same are subject to audit by CAG of India or any statutory auditor appointed for auditing the accounts of local authorities.
- Such registered person is required to furnish electronically through the common portal along with Annual Return a copy of:
Audited annual accounts
A Reconciliation Statement, duly certified, in prescribed form(Basically this is reconciling the return furnished with the audited annual financial statements)
What is the period of retention of accounts as per the provisions of section 36?
- Every registered person required to keep and maintain books of account or other records in accordance with the provisions of section 35(1) shall retain them until the expiry of 72 months from the due date of furnishing of annual return for the year pertaining to such accounts and records.
- Other records pertaining to the subject matter of such appeal or revision or proceedings or investigation for a period of one year after final disposal of such appeal or revision or proceedings or investigation, or for the period specified above, whichever is later.
What is the meaning of E-way bill? and what is the form using which the E-way bill has to be generated and who is the person required to obtain an E-way bill?
- A waybill is a receipt or a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods and the details include name of consignor, consignee, the point of origin of the consignment, its destination, and route.
- Electronic Way Bill (E-Way Bill) is a compliance mechanism wherein by way of a digital interface the person causing the movement of goods uploads the relevant information prior to the commencement of movement of goods and generates e-way bill on the GST portal. In other words, E-way bill is an electronic document generated on the GST portal evidencing movement of goods.
- E-way Bill is generated electronically in Form GST EWB 01 on the common portal (www.ewaybillgst.gov.in). The facility of generation, cancellation, updation and assignment of e-way bill is available to the supplier, recipient and the transporter, as the case may be.
- The pre-requisite for generation of e-way bill is that the person who generates e-way bill should be a registered person on GST portal and he should register on the e-way bill portal. If the transporter is not registered person under GST, it is mandatory for him to get enrolled on e-waybill portal before generation of the E-way bill.
When is an E-way bill required to be generated as per the provisions of Rule 138(1)? and what is the meaning of consignment value of goods?
- Whenever there is a movement of goods of consignment value exceeding ` 50,000:
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an unregistered person, - the registered person who causes such movement of goods(This is important to understand based on the supply as aforesaid) shall furnish the information relating to the said goods as specified in Part A of Form GST EWB-01 before commencement of such movement.
- If supplier is registered and undertakes to transport the goods, movement of goods is caused by the supplier. If recipient arranges transport, movement is caused by him. If goods are supplied by an unregistered supplier to a registered known recipient, movement shall said to be caused by such recipient.
What are some special situations in which e-way bill needs to be issued even if the value of the consignment is less than ` 50,000:?
- Inter-State transfer of goods by principal to job worker - the e-way bill shall be generated either by the principal or the job worker, if registered, irrespective of the value of the consignment [Third proviso to rule 138(1)] - From one state or UT to another state or UT.
- Inter-State transfer of handicraft goods by a person exempted from obtaining registration - Where handicraft goods* are transported from one State or Union territory to another State or Union territory by a person who has been exempted from the requirement of obtaining registration - E way bill has to be generated irrespective of the value of consignment.
- E- way bill in case of Bill to ship to Model - It is clarified that as per the CGST Rules, 2017, either A or B can generate the e-Way Bill but it may be noted that only one e-Way Bill is required to be generated [Press Release dated 23.04.2018]
What is the information that needs to be furnished as per GST EWB-01?
- 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, etc.]: to be furnished by the registered person** who is causing movement of goods of consignment value exceeding ` 50,000/- and
- Part B (transport details) [Transporter document number (Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number) and Vehicle number, in case of transport by road]: to be furnished by the person who is transporting the goods
Who is mandatorily required to generate e-way bill?
- Where the goods are transported by a registered person - whether as consignor or recipient as the consignee - Rule 138(2)
- Where the e-way bill is not generated by the registered person and the goods are handed over to the transporter, for transportation of goods by road - The registered person has to first furnish the name of the transporter in Part B
- Where the goods are transported by railways or by air or vessel - 138(2A)]
- Other points - Image
When is it not mandatory to furnish the details of conveyance in part-B?
- Explanation 2 to rule 138(3) stipulates that e-way bill is valid for movement of goods by road only when the information in Part-B is furnished.
- However, details of conveyance may not be furnished in Part-B of the e-way bill where the goods are transported for a distance of upto 50 km within the State/Union territory:
from the place of business of the consignor to the place of business of the transporter for further transportation [Third proviso to rule 138(3)] or
from the place of business of the transporter finally to the place of business of the consignee [Proviso to rule 138(5)].
What are the rules for transfer of goods from one conveyance to another?
What are the rules for generating consolidated E-Way bill as per rule 138(6)?
- Further, where the consignor/consignee has not generated the e-way bill in Form GST EWB-01 and the aggregate of the consignment value of goods carried in the conveyance is more than ` 50,000, the transporter, except in case of transportation of goods by railways, air and vessel, shall, in respect of inter-State supply, generate the e-way bill in Form GST EWB-01 on the basis of invoice or bill of supply or delivery challan, as the case may be, and may also generate a consolidated e-way bill in Form GST EWB-02 on the common portal prior to the movement of goods [Rule 138(7)]. Provisions of rule 138(7) have not yet been made effective.
What is Validity period of e-way bill/consolidated e-way bill [Rule 138(10)]?
- Relevant date - means the date on which the e-way bill has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as the period expiring at midnight of the day immediately following the date of generation of e-way bill.
- The validity of the e-way bill starts when first entry is made in Part-B i.e. vehicle entry is made first time in case of road transportation or first transport document number entry in case of rail/air/ship transportation, whichever is the first entry. It may be noted that validity is not re-calculated for subsequent entries in Part-B
- Extension of Validity period - Extension by Commissioner for certain categories of goods
- Extension by transporter in exceptional circumstances - Where, under circumstances of an exceptional nature(Natural calamity and the like), including trans-shipment, the goods cannot be transported within the validity period of the e-way bill, the transporter may extend the validity period after updating the details in Part B, if required. The validity of the e-way bill may be extended within 8 hours from the time of its expiry.
Is the supplier or recipient as the case may be has the option to accept or reject the E-way bill ?
Is the E-way bill generated in one State is valid in another State?
The e-way bill generated under this rule or under rule 138 of the Goods and Services Tax Rules of any State or Union territory shall be valid in every State and Union territory [Rule 138(13)].
What are the situations other than the threshold limit of 50,000 where E-way Bill is not required to be generated? - Part 1 Exemptions
where the goods being transported are the ones given below
What are the situations other than the threshold limit of 50,000 where E-way Bill is not required to be generated? - Part 2 Exemption
What are the various documents and devices o be carried by a person-in-charge of a conveyance [Section 138A?
- The person-in-charge of a conveyance shall carry -
(a) the invoice or bill of supply or delivery challan, as the case may be; and
(b) a copy of the e-way bill in physical form or the e-way bill number in electronic form or mapped to a RFID** embedded on to the conveyance [except in case of movement of goods by rail or by air or vessel] in such manner as may be notified by the Commissioner [Rule 138A(1)]. - IRN can be provided in lieu of the tax invoice where E-Invoicing rules are being followed, which having QR code embedded in it has the capability to auto populate the E-way bill and GSTR 1 based on the information from IRP and IRN.
What are the rules for verification of Documents and conveyances as per rule 138B?
What are certain other points regarding inspection and verification of goods as per Rule 138C?
Who are the persons on whom Restriction on furnishing of information in Part A of Form GST EWB 01 [Rule 138E]?
What is the situation where the recipient taxpayer storing goods in the transporter’s godown? what is the E-way bill requirements? and who is eligible to maintain books and records in relation to those goods? and whether it has to be maintained at PPOB or is it enough if it is maintained in APOB?
