CBIC details procedures on e-way bill verification, inspection of goods

The Central Board of Indirect Taxes and Customs (CBIC) has issued detailed instructions on the procedures to be followed by field officers for e-way bill verification and interception of vehicles for inspection/detention of goods under the GST regime.

These instructions are intended to ensure uniformity in the implementation of the provisions of the CGST Act, according to a circular issued by the CBIC.

The circular details the procedures to be followed in case of interception of ‘conveyances' for inspection of goods in movement and detention, seizure and release and confiscation of such goods and vehicles. Tax experts hope that the new e-way bill inspection procedures do not lead to return of Inspector Raj.

These instructions to field formations comes on the heels of the Centre mandating e-way bill system for inter-State movement of goods from April 1 this year. Also, e-way bills will be required for intra-State movement of goods in five States (Andhra Prakash, Telengana, Kerala, Gujarat and Uttar Pradesh) from Monday. Karnataka had already implemented intra-State e-way bill system.

Abhishek Jain, Partner, EY, said: “To ensure uniformity in the procedures followed by GST authorities in cases of interception of vehicles for inspection/determination of goods, the government has released a detailed circular clarifying the procedure to be followed".

With responsibilities like time-bound uploading of reports/forms by revenue authorities, time-bound closure of cases where goods have been detained, instructions to release goods where there are no prima-facie irregularities and so on, it is expected that e-way bill inspections may not entail unwarranted hardships to businesses, he said.

Vishal Raheja, DGM, Taxmann, said that widespread awareness programmes must be organised to educate transportation service providers to ensure hassle-free implementation of e-way bill provisions.

“If there is fault of transporter or driver in complying with the provisions of e-way bill during movement of goods, such as movement of goods without e-way bill, then consignor will face huge penalty", Raheja said.

Pavan Peechara, President of the board and CEO of Adaequare and Director Udyog Software (India) Ltd, said that e-way bills have an enormous impact on how traders, manufacturers and transporters operate.

Businesses will require IT preparedness to ensure their time-sensitive logistic/supply chain is operated smoothly with effective communication between consignor, transporter, government and consignee, he said.

The inter-related e-way bill system has been introduced at a time when GST revenues has been volatile and showing a somewhat declining trend. All States are expected to move to e-way bill system for intra-State sales by June 1.

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