FAQs


E-Way Bill

What has to be entered in GSTIN Column, if Consignor or consignee is not having GSTIN?

If the Consignor or consignee is unregistered taxpayer and not having GSTIN, then user has to enter ‘URP’ (Unregistered Person) in corresponding GSTIN Column.

How does the tax payer become transporter in the e-way bill system?

To change his position from supplier or recipient to transporter, the tax payer has to select the option ‘Register as Transporter’ under registration and update his profile. Once it is done, the system changes tax payer as transporter.

How to generate e-way bill for multiple invoices belonging to same consignor and consignee?

If multiple invoices are issued by supplier to recipient, that is, for movement of goods of more than one invoice of same consignor and consignee, multiple EWBs have to be generated. That is, for each invoice, one EWB has to be generated, irrespective of same or different consignors or consignees are involved. Multiple invoices cannot be clubbed to generate one EWB. However, after generating all these EWBs, one Consolidated EWB can be prepared for transportation purpose, if they are going in one vehicle.

Before Submission, the system is not allowing to edit the details, what to do?

The system allows editing the details of e-way bill entries before submission. However, if the products/commodities details are entered, it will not allow editing some fields as the tax rates will change. To enable this, please delete the products and edit the required fields and enter the products again.

How does the taxpayer enter the Part-A details and generate the e-way bill later by entering Part-B?

The taxpayer can enter Part-A details and generate the Part-A slip. Sometimes, the taxpayer wants to move the goods himself but wants to update Part-B later as vehicle number is not available at that point of time. E-way Bill expects the user to enter transporter ID or vehicle number. So, if he wants to move the goods himself, he can enter his GSTIN as transporter Id and generate Part-A slip. This indicates to the system that he is a transporter and is going to enter Part-B later.

How to generate the e-way bill from different registered business places?

The registered person can generate the e-way bill from his account from any registered place. However, he/she needs to enter the address accordingly in the e-way bill. He /she can also create multiple sub-users and assigned to these places and generate the e-way bills accordingly.

What is the role of sub-users in e-way bill system? How can sub-users be activated?

A taxpayer can create sub-users in the e-way bill system and assign specific roles to them like generation of EWB or rejection or report generation activities based on requirements. This helps the large firms with multi locations/ shifts to distribute work.

What has to be done by the transporter if consignee refuses to take goods or reject the goods for quality reasons?

There is a chance that consignee or recipient may reject to take the delivery of consignment due to various reasons. Under such circumstance, the transporter can get one more e-way bill generated with the help of supplier or recipient by indicating supply as ‘Sales Return’ and with relevant document details and return the goods to supplier as per his agreement with him.

Whether e-way bill is required, if the goods are being purchased and moved by the consumer to his destination himself?

Yes, as per the rules, e-way bill is required to be carried along with the goods at the time of transportation, if the value is more that Rs 50,000/-. Under this circumstance, the consumer can get the e-way bill generated from the taxpayer or supplier, based on the bill or invoice issued by him. Or the consumer can enroll and log in as the citizen and generate the e-way bill.

I am unable to enroll as transporter as the system is saying ‘Aadhar details are not validated’.

This is indicating that Aadhar name, mobile and Number, entered by you, are not getting validated by Aadhar system. Please enter exact name, mobile and number provided in the Aadhar card.

Can E-way bill be modified or edited?

The E-way Bill once generated, cannot be edited or modified. Only Part-B can be updated to it. However, if e-way bill is generated with wrong information, it can be cancelled and generated freshly again. The cancellation is required to be done within twenty four hours from the time of generation.

Why the Transporter needs to enroll on the E-way bill system?

There may be some transporters, who are not registered under Goods and Services Tax Act and if such transporters cause movement of goods for their clients, they are required to generate the e-way bill on behalf of their clients or update the vehicle number for e-way bill. Hence, they need to enroll on the e-way bill portal and generate the 15digits Unique Transporter ID (TRANSIN).

What is TRANSIN or transporter ID?

TRANSIN or Transporter id is 15 digit unique number generated by EWB system for unregistered transporter once he enrolls on the system. TRANSIN is 15 digit number on the similar lines of GSTIN and is based on state code, PAN and check digit. This can be shared by Transporter to his clients to enter this number while generating e-way bills.

What has to be done, if the validity of the e-way bill expires?

If validity of the e-way bill expires, the goods are not supposed to be moved. However, under circumstance of ‘exceptional nature’, the generator of the e-way bill can generate another e-way bill, by entering the e-way bill number and part-B. Now, the system generates the new e-way bill with part-A information of previous e-way bill and new Part-B information.

GST

Q.1 Whether a person can avail the composition scheme on Small Retail Trading of goods if he is holding both incomes like Sale of business: Rs.25 lakh (Small Retail Trader) and Rental income: Rs. 12lakhs, whereas the person was registered earlier in VAT Composition Scheme and was paying Service Tax on rental income?

Ans. Renting is a service and supplier of service, except restaurant service, cannot opt for composition scheme. Since you are supplying both goods & services, you are not eligible for composition scheme.


Q.2 In view of definition of ‘export of goods’ given in Section 2(5) of the IGST Act, 2017, the supply of goods by the manufacturer to merchant exporter cannot be treated as exports as he is not taking out the goods out of India. He is supplying the goods to the merchant-exporter. Therefore, is the manufacturer required to pay CGST and SGST in all cases of exports by merchant-exporter even though the goods are being sealed in container for export from the premises of manufacturer-exporter? Does the merchant-exporter have the option either to avail option of LUT or to pay IGST for export of such goods?

Ans: Yes, The manufacturer would be liable to pay CGST and SGST.  The merchant-exporter has the option either to avail option of LUT or to pay IGST for export of such goods. There is no provision on the lines of Form H under the CST Act in the GST.


Q. 3 If an Assessee has two or more units with single registration, how the invoices are to be maintained viz., separate invoices unit wise or single invoice for all units ?

Ans: He can issue unit-wise invoice also. But there should not be any duplication in numbering system.


Q. 4 Is the GST applicable on interest levied on an EMI of the product purchased from the Amazon provided payment made from a credit card?

Ans: Yes, any interest paid on loan taken through Credit Card (with blocking or without blocking credit card limit) is taxable under GST.

Amazon provides EMI services through credit card of its’ partner banks. So, any EMI facility offered by Amazon is not of itself, but is of your banker who has extended you a Credit card facility. So, any such loan taken through Amazon is actually taken from Bank.

As per entry no. 15 of CGST Rate Notification No. 11/2017 dtd 28.06.2017 read with entry no. 27 of CGST Rate Notification No. 12/2017 dtd 28.06.2017, it is specifically provided that interest involved in credit card services is taxable at 18%.


Q.5 What are the government charges for business GST registration?

Ans. There are no (Nil) charges right now as government fee for registration under GST laws.  However, in case of casual registration, estimated amount tax to be paid in advance before getting registration.


Q.6 I am running a Tea Counter inside a canteen in a software company. I prepare Tea and sell it at the counter.  I wanted to know if my business fall under GST exempted tax category as my raw material includes Milk and Ginger which are 0% GST.

Raw Material : Milk, Sugar, Tea Powder, Ginger and Elachi. Do I fall under Goods or Services? The premises which I operate my business, is not a hotel but a canteen maintained by the software company. Kindly provide me the necessary clarification.

Ans.

First of all, this supply will be considered as Supply of Services. Schedule-II of CGST Act 2017 has specified this supply as service:

“Supply, by way of or as part of any service or in any manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption) and such supply is for cash, deferred payment or other valuable consideration”, it will be considered as Supply of Service.

Secondly, it is not necessary that your raw materials are tax free components. Tax is applicable on items sold/supplied. If your final product is under taxable category, then tax will be applicable.

Thirdly, Tea is a taxable service under supply of food/drink services. Your service is taxable at the rate of 5%. However, to decide whether you are a taxable person or not, you need to check the registration requirements provided under law. If you require registration under GST, tax will surely applicable on your services.

Please refer following article to check whether you need to register under law or not:-

Registration under GST- Turnover Limits and Other Various Situations


Q.7 Whether activity of bus body building, is a supply of goods or services?

Ans: In the case of bus body building there is supply of goods and services. Thus, classification of this composite supply, as goods or service would depend on which supply is the principal supply which may be determined on the basis of facts and circumstances of each case.


Q.8 Whether retreading of tyres is a supply of goods or services?

Ans. In retreading of tyres, which is a composite supply, the pre-dominant element is the process of retreading which is a supply of service. Rubber used for retreading is an ancillary supply. Which part of a composite supply is the principal supply, must be determined keeping in view the nature of the supply involved. Value may be one of the guiding factors in this determination, but not the sole factor. The primary question that should be asked is what is the essential nature of the composite supply and which element of the supply imparts that essential nature to the composite supply.

Supply of retreaded tyres, where the old tyres belong to the supplier of retreaded tyres, is a supply of goods (retreaded tyres under heading 4012 of the Customs Tariff attracting GST @ 28%)


Q.9 Whether Priority Sector Lending Certificates (PSLCs) are outside the purview of GST and therefore not taxable?

Ans. In Reserve Bank of India FAQ on PSLC, it has been mentioned that PSLC may be construed to be in the nature of goods, dealing in which has been notified as a permissible activity under section 6(1) of the Banking Regulation Act, 1949 vide Government  of India notification dated 4th February, 2016. PSLC are not securities. PSLC are akin to freely tradeable duty scrips, Renewable Energy Certificates, REP license or replenishment license, which attracted VAT. In GST there is no exemption to trading in PSLCs.  Thus, PSLCs are taxable as goods at standard rate of 18% under the residuary S. No. 453 of Schedule III of notification No. 1/2017-Central Tax(Rate). GST payable on the certificates would be available as ITC to the bank buying the certificates.


Q. 10  Whether the activities carried by DISCOMS against recovery of charges from consumers under State Electricity Act are exempt from GST?

Ans.  Service by way of transmission or distribution of electricity by an electricity transmission or distribution utility is exempt from GST under notification No. 12/2017- CT (R), Sl. No. 25. The other services such as, –

i. Application fee for releasing connection of electricity;

ii. Rental Charges against metering equipment;

iii. Testing fee for meters/ transformers, capacitors etc.;

iv. Labour charges from customers for shifting of meters or shifting of service lines;

v. charges for duplicate bill;

provided by DISCOMS to consumer are taxable.


Q.11 Whether the guarantee provided by State Government to state owned companies against guarantee commission, is taxable under GST?

Ans. The service provided by Central Government/State Government to any business entity including PSUs by way of guaranteeing the loans taken by them from financial institutions against consideration in any form including Guarantee Commission is taxable.

GTA

Question 1: I am a single truck owner-operator and I ply my truck mostly between States, carrying the goods booked for my truck by an agent; aggregate value of service which I provided exceeded twenty lakh rupees during last year. Am I supposed to take registration?

Answer: You are not liable to registration, as services provided by way of transportation of goods by road are exempt. Notification number 12/2017-Central Tax (Rate), dated 28th June, 2017 refers.

Question 2: I own a single truck and I rent it to a major player, who provides GTA service; should I take a registration? Does my monthly rental/lease income attract GST?

Answer: Registration is not required since services by way of giving on hire, a means of transportation of goods to a GTA are exempt from tax vide entry no. 22 of Notification number 12/2017-Central Tax (Rate) dated 28th June, 2017.

Question 3: In my truck, I only carry fruits and vegetables, in relation to whose transportation service GST is exempt; should I take registration?

Answer: Services by way of transportation of goods by road other than by a GTA or a courier agency are exempt from tax under entry no. 18 of notification No. 12/2017-Central Tax (Rate) dated the 28th June, 2017 and thus you are not liable for registration.

Question 4: I am a truck supplier/broker. My job is to get orders for truck owners. I quote the rate for transportation to GTA on behalf of truck owners and I get a small amount as commission out of the truck hire fixed with the GTA. This brokerage is paid by the truck owners. As the services provided by way of transportation of goods by road are exempt from tax, am I liable to registration?

Answer: You are liable to registration if the aggregate amount of commission received by you in a financial year exceeds Rs. 20 lakhs (Rs. 10 lakhs in special category States except J & K).

Question 5: As a transporter, am I required to maintain any records of my services of transportation?

Answer: Yes, in terms of section 35(2) of the CGST Act, 2017 you are required to maintain records of the consigner, consignee and other relevant details of the goods. Further, in terms of rule 56 of the CGST Rules, 2017 you are required to maintain records of goods transported, delivered and goods stored in transit by you along with the GSTIN of the registered consigner and consignee for each of your branches.

Question 6: Are intermediary and ancillary services, such as, loading/unloading, packing/unpacking, transhipment and temporary warehousing, provided in relation to transportation of goods by road to be treated as part of the GTA service, being a composite supply, or these services are to be treated as separate supplies.

Answer: The GTA provides service to a person in relation to transportation of goods by road in a goods carriage, which is a composite service. The composite service may include various intermediary and ancillary services, such as, loading/unloading, packing/unpacking, transhipment and temporary warehousing, which are provided in the course of transport of goods by road. These services are not provided as independent services but as ancillary to the principal service, namely, transportation of goods by road. The invoice issued by the GTA for providing the said service includes the value of intermediary and ancillary services.

In view of this, if any intermediary and ancillary service is provided in relation to transportation of goods by road, and charges, if any, for such services are included in the invoice issued by the GTA, such service would form part of the GTA service and would not be treated as a separate supply. In fact, any service provided along with the GTA service that is part of the composite service of GTA shall be taxed along with GTA service and not as separate supplies.

However, if such incidental services are provided as separate services and charged separately, whether in the same invoice or separate invoices, they shall be treated as separate supplies.

Question 7: As per Notification number 05/2017-Central Tax dated 19th June, 2017, the persons who are only engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or both under sub-section (3) of section 9 of the CGST Act, 2017 are exempted from obtaining registration under the said Act. Please clarify whether a GTA providing service in relation to transportation of goods by road under reverse charge mechanism (RCM) can avail of the benefit of this exemption.

Answer: Yes, a GTA providing service in relation to transportation of goods by road under RCM can avail of the benefit of this exemption.

Question 8: Can a GTA obtain registration for one vertical (Rail, Cargo, Renting, Warehousing etc.) for which tax needs to be paid while not obtaining registration for another vertical (GTA under RCM) on which there is no tax liability.

Answer: No, because the business entity is not engaged exclusively in the supply of services liable to tax under reverse charge mechanism. 

Question 9: In transport industry, old vehicles, old tyres, scrap material etc, on which no input tax credit (ITC) has been taken, are disposed of after completion of their useful life. As a truck owner disposing of these goods, am I required to pay GST considering that no ITC has been taken at the time of their initial purchases? Would levy of tax in such cases not amount to double taxation, as tax has already been paid at the time of initial purchases?

Answer: Under section 7 of the CGST Act, 2017 supply includes all forms of supply of goods such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. Sale or disposal of old vehicles, old tyres and scrap material for a consideration would therefore attract GST regardless of whether ITC has been availed or not.

 Question 10: Please clarify whether input tax credit is available to the recipient of service, when the GST paid by him is at a concessional rate of 5% under RCM.

Answer: Yes, input tax credit is available in such cases.

 Question 11: When a GTA hires a truck (with driver) from another GST registered entity for the purpose of providing goods transport service to a registered recipient, whether tax credit is available to the GTA on the GST paid by him to the owner of the truck registered under GST.

Answer: Services by way of giving on hire to a GTA, a means of transportation of goods are exempt from GST under Notification number 12/2017-Central Tax (Rate) dated 28th June 2017. When the tax is not payable, the question of taking any tax credit does not arise.