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The new GST draft rule by the Central Board of Excise and Customs (CBEC) is wrought with complexities, aver the trade and industry.
Voicing objection to the draft rule which mandates every registered tax payer who sends consignment - within state or inter-state - for value exceeding Rs 50,000 to furnish information relating to the goods before commencement of movement (of the goods) in the GSTN Portal and generate the e-way bill as well to go with the consignment, S Rethinavelu, Senior President, TamilNadu Chamber of Commerce and Industry, Madurai said “the e-way bill procedure will entail additional documentation in addition to the regular tax invoice. Instead of streamlining and simplifying the tax procedures under GST regime, the e-way bill of CBEC will further complicate the procedures.”
Asked how it would complicate, Rethinavelu explained that the e-way bill is generally valid for period not exceeding 15 days, according to the distance the goods have to be transported. Any delay in transportation will automatically invalidate the e-way bill and the tax payer will have to pay a penalty.
That’s not all. If the goods have to be transferred from one vehicle to another enroute, the problem will be more pronounced. There will be confrontations with the tax officials in calculation of the distance.
Further, the logistics sector is largely unorganised. This will make it more difficult for the players to adopt to electronic way bills.
“Under GST regime, except invoicing, all other procedures such as registration, submission of returns, payment of taxes, refunds, assessments, maintenance of tax payer’s accounts, filing appeals have to be done online under GSTN Portal. When every procedure is in the electronic mode, it will eliminate tax evasion and streamline movement of goods. A single document therefore (for transportation of goods) should suffice,” he contended.
Objection to the new draft rule apart, trade sources feel that in the first instance, generation of tax invoice from the GSTN Portal could be mandated for inter-state consignments and that too for value (of goods transported) in excess of Rs one lakh and the requirement for e-way bill be withdrawn.
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