I. Introduction

Central Goods and Services and Services Tax Act, 2017 (for brevity, ‘CGST Act’):

The CGST Act has borrowed the concept of way bills which was prevalent under the State VAT laws which is known as e-way bill under the CGST Act.

Section 164 (2) of the CGST Act empowers the Government to make Rules required under the CGST Act. In terms of the powers under Section 164(2) of the CGST Act, Rule 138 of Central Goods and Services Tax Rules, 2017 (for brevity, ‘CGST Rules’) has been framed wherein every registered person under the CGST Act is required to furnish information prior to commencement of movement of goods and generation of e-way bill. Further, Section 68 of the CGST Act read with Rule 138A of CGST Rules provides certain documents to be carried by person in charge of conveyance; amongst other documents, e-way bill is also required to be accompanied with the goods during their movement. Critical issues on e-way bill is made in the ensuing paragraphs.

II. Analysis of e-way bill prescribed under CGST Act, 2017

1. Effective date: Notification No. 15/2018 – Central Tax dated 23.03.2108 was issued notifying April 01, 2018 as the date from which e-way bill was made effective for inter-State movement of goods. States introduced e-way bill for intra-state movement of goods on different dates.

2. Generation of e-way bill: Rule 138 of the CGST Rules provides that every registered person causing movement of goods of consignment value exceeding ₹ 50,000/- in the following circumstances before commencement of movement furnish details in Part A of e-way bill electronically on the GST portal https://ewaybill.nic.in:

a. Supply of goods

b. Reasons other than supply

c. Inward supply from unregistered person

The transporter or a courier agency or an e-commerce operator (where goods are supplied through e-commerce operator) on the authorisation of the registered person can furnish details in Part A of the e-way bill.

Where movement of goods is caused by an unregistered person, e-way bill can be generated by such person or by the transporter.

Meaning of consignment value of goods – consignment value of goods means value, determined in accordance with the provisions of section 15 as declared in an invoice, a bill of supply or a delivery challan, as the case may be. Consignment value of goods includes the Central tax, State or Union territory tax, integrated tax and cess charged, if any, in the document and shall exclude the value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods.

E-way bill should be generated irrespective of the value of consignment in the following cases

a. Inter-State movement of goods between Principal and Job worker – To be generated by Principal / Job worker if registered, irrespective of the value of the consignment.

b. Inter-State movement of handicraft goods by a person exempted from registration under Section 24(i) and (ii) – To be generated by such consigner, although unregistered, irrespective of the value of the consignment.

Frequently asked questions

Q. What should be the value in e-way bill in case goods are sent on lease basis as the value of machine is much higher than leasing charges? #

Ans: The value of goods needs to be mentioned as per the explanation 2 of the sub–rule (1) of Rule 138 (in the Author’s view, the value of goods consigned on lease basis, shall be lease rental charges to be received and not the value of goods leased)

Q. Expired stock has no commercial value, but is often transported back to the seller for statutory and regulatory requirements, or for destruction by seller himself. What needs to be done for such cases of transportation of the expired stock? #

Ans: E-way bills are required even in cases where goods are moved for reasons other than supply. Delivery Challan has to be the basis for generation of e-way bill in such cases.

Q. Whether shipping charges charged by e-commerce companies needs to be included in ‘consignment value’ though the same is not mentioned on merchant’s invoice? #

Ans. Consignment value of goods would be the value determined in accordance with the provisions of section 15 of the CGST Act, 2017. It will also include the Central tax, State or Union territory tax, integrated tax and cess charged, if any. So shipping charges charged by the e-commerce companies need not be included in the ‘consignment value’.

Q. Where an invoice is in respect of both goods and services, whether the consignment value should be based on the invoice value (inclusive of value of services) or only on the value of goods. Further, whether HSN wise details of service is also required to be captured in Part A of the e-way bill in such case. #

Ans: Consignment value and HSN needs to be determined for goods only, and not for services, as only the goods are in movement and e-way bill needs to be generated accordingly.

3. E-way is not required in the following circumstances

i. Movement of goods under following circumstances for which e-way bill is not required

a. Transportation by a non-motorised conveyance

b. Transportation of goods

• From Customs port / airport / air cargo complex and land customs station (“Ports”) to an inland container depot (ICD) or a container freight station (CFS) for clearance by Customs

• Under customs bond from an ICD or a CFS to Ports, or from one customs station or customs port to another

• Under customs supervision or under customs seal

c. Transit cargo from or to Nepal or Bhutan

d. Movements caused by defence formation under Ministry of defence (as consignor / consignee)

e. Transportation by rail where consignor is either the Government or a local authority

f. Transportation (against a delivery challan under Rule 55) up to a distance of 20 km. from the place of business of consignor to weigh bridge and back

ii. Following are list of goods for which e-way bill is not mandatory

a. Transportation of empty cargo containers

b. Empty cylinders for packing of liquefied petroleum gas are being moved for reasons other than supply

c. Movement within such notified areas of respective State/UT GST [vide Rule 138(14)(d)]

d. Goods treated as ‘no supply’ under Schedule III

e. Non-taxable goods: Alcoholic liquor for human consumption, petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas or aviation turbine fuel

f. Goods being exempted under notification 2/2017- Central Tax (Rate) except de-oiled cake

g. Supplies between CSD, Unit Run Canteens and authorised customers notified in 7/2017–Central Tax (Rate)

h. Heavy water and Nuclear fuels notified in 26/2017–Central Tax (Rate)

i. LPG for Supply to households & Non-domestic exempted Category

j. Kerosene sold under PDS

k. Natural or Cultured Pearls, Precious & Semi Precious Stones, Precious Metals & metals clad with Special Metals (Chapter 71 Customs Tariff Act, 1975)

l. Jewellery, Goldsmiths’ & Silversmiths’ wares & other Articles (Chapter 71 Customs Tariff Act, 1975)

m. Coral, unworked (0508) & worked Coral (9601)

n. Postal baggage transported by Department of Posts

o. Used personal and household effects

p. Currency

Frequently asked questions

Q. Where goods are supplied on “as is-where is” basis, whether EWB is to be generated? @

Ans: EWB is not required to be generated for supply of goods unless it involves movement of goods through a motorized conveyance. In case of sale of goods on “as is – where is” basis, there is no movement of goods. Hence, there is no need to generate EWB in case of such instances.

Q. If the goods are taken from one State to another for the purpose of display in exhibition, whether EWB is required to be generated? @

Ans: EWB would be required to be generated, where the value of the consignment exceeds ₹ 50,000/- There is separate sub-heading which has specific reference of exhibition/display for generation of EWB.

Q. What is meant by person causing movement of goods in case of ex-factory sale? @

Ans: In case of ex-factory sale where buyer assumes ownership and risk of the goods at the supplier factory and appoints his own transporter for movement of goods, it could be said to be that the movement of goods have been caused by recipient. Based on this interpretation, the EWB may have to be generated by the recipient. This also finds support from the fact that if during the course of movement of goods, if the consignment is examined by the proper officer for some irregularity, the liability is on the owner of the goods i.e. buyer. Hence, it could be said that movement is caused by the recipient and he should generate EWB.

Q. Supply of goods through pipeline, whether oil, petroleum, gases, water, electricity etc. whether EWB is required to be generated? @

Ans: EWB is required to be generated when movement of goods is through motorized conveyance. Further, the EWB portal has 4 modes of transportation i.e. road, air, rail and ship. As the transportation of goods through pipeline may not involve movement of goods through motorized vehicle, there may not be need to generate EWB for such movement of goods.

4. Details to be uploaded in e-way bill: E-way bill has 2 parts to be updated viz Part A and Part B.

a. Contents of Part A which are to be uploaded

Entry Description	Details to be filled
GSTIN	GSTIN of supplier and recipient of goods. (If unregistered, “URP” shall be entered)
Place of Dispatch and Delivery	Indicate the Pin code Option available to enter the addresses of these places (not mandatory)
Document No.	Reference to Invoice No., Bill of supply No., Delivery Challan No. and bill of entry in case of import of goods
Document Date	Date of issue of Invoice, Bill of Supply or Delivery Challan and date of bill of entry
Value of Goods	• Value determined in accordance with Section 15 • Should include taxes under GST and cess. • The value should be declared on the invoice.
HSN Code	• If Annual Turnover (in preceding FY) is less than ₹ 5 Crore – 2 Digits • If Annual Turnover (in preceding FY) is more than ₹ 5 Crore – 4 Digits
Reason for Transport	Following are the available options – (1) Supply (2) Export / Import (3) Job Work (4) SKD / CKD – i.e., Semi Knocked Down / Completely Knocked Down (5) Recipient not known (6) Line Sales (7) Sales Returns (8) Exhibition or fairs (9) For own use (10) Others

Details once uploaded cannot be changed

b. Contents of Part B which are to be uploaded:

Entry Description	Details to be filled
Vehicle No. for road	Vehicle registration No. as per RTO (Applicable only to transport by road)
Transport Document No. Defence Vehicle No. Temporary Vehicle Registration No. Nepal / Bhutan Vehicle Registration No.	Goods Receipt Number (GRN); Forwarding Note Number; Railway receipt number; Parcel way bill number; Airway Bill Number; Bill of Lading number

Details of conveyance may not be updated in the following circumstances:

• If the distance between the place of consignor and the place of transporter is less than 50 Kms

• If the distance between the place of transporter and the place of consignee is less than 50 Kms

c. Unique number generated upon submission of Part-A is not e-way bill number. Part-A is temporarily stored on the GST portal. The temporary number generated is valid for 15 days. Part-B of e-way bill can be updated later once the details of transporter are available. Valid e-way bill is generated only after Part-B is submitted.

d. E-way bill generation in case of “Bill to Ship to” transactions: A (Bangalore) orders B (Chennai) to dispatch the goods directly to C (Mumbai) e-Way. It has been clarified that two tax invoices are to be generated. One between A to B and another between B to C. Either A or B can generate the e-Way bill. It should be noted that only one e-Way bill is required to be generated as per the following procedure

Case	Case-1: Where e-Way Bill is generated by ‘B’, the following fields shall be filled in Part A of GST FORM EWB-01	Case-2: Where e-Way Bill is generated by ‘A’, the following fields shall be filled in Part A of GST FORM EWB-01:
Bill From:	In this field details of ‘B’ are to be filled.	In this field details of ‘A’ are to be filled.
Dispatch From:	This is the place from where goods are actually dispatched. It may be the principal or additional place of business of ‘B’.	This is the place from where goods are actually dispatched. It may be the principal or additional place of business of ‘B’.
Bill To:	In this field details of ‘A’ are to be filled.	In this field details of ‘C’ are to be filled.
Ship to:	In this field address of ‘C’ is to be filled.	In this field address of ‘C’ is to be filled.
Invoice Details:	Details of Invoice-1 are to be filled	Details of Invoice-2 are to be filled

e. If goods are not transported upon generation of e-way, the same has to be cancelled within 24 hours by the supplier.

5. Validity of e-way bill: The e-way bill once generated will be valid for following number of days

Dimension	Distance*	Validity from Relevant Date
In case of Other than over dimensional Cargo	Up to 100 Km.	1 day
	For every 100 Km. or part thereof thereafter	1 additional day
In cases of Over dimensional Cargo	Up to 20 Km.	1 day
	For every 20 Km. or part thereof thereafter	1 additional day

• Relevant Date means: Date on which the e-Way bill is generated.

• Period of 1 Day means: Counted from the midnight of the day on which E-way bill is generated

• Validity period can be extended: Under exceptional circumstances and cases of transhipment, if goods are not transported within the validity of the e-Way bill, transporter may extend the validity of the bill by updating details in Part B of e-Way bill.

• The distance covered by all modes of transport must be combined

Meaning of Over dimensional Cargo (ODC) – ODC means cargo carried as a single indivisible unit which exceeds the limits prescribed under Rule 93 of Central Motor Vehicle Rules, 1989 (Motor Vehicles Act, 1988). It is that which protrudes outside the loading deck of the vehicle transporting the cargo. Definition of ODC is to resist industry from transporting normal cargo unnecessarily as ODC for small economic benefits by compromising road user’s safety. The Act prescribes the allowable limits for the dimensions of the vehicle beyond which the cargo would qualify as ODC:

• height limit for all mechanical trucks and trailers at 3.8 meters (12.46 feet) from the surface

• length and width, upper limits are 12 meters length for Rigid Trucks, 16 meters length for articulated vehicles (also called Trailers) and 2.6 meters width for all vehicles.

6. Documents to be carried along with the conveyance

1. Following documents are to be carried along with the conveyance –

a. Invoice / bill of supply / delivery challan

b. In case of imported goods, copy of the bill of entry filed by the importer of such goods

c. Copy of e-Way bill in physical form OR e-Way bill number in electronic form (except for transport by Air/Rail/Vessel) or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner

d. Invoice Reference Number

2. The Commissioner may, by notification, require the person-in-charge of the conveyance to carry the following documents instead of the e-way bill

a. Tax invoice or bill of supply or bill of entry; or

b. A delivery challan, where the goods are transported for reasons other than by way of supply

Frequently asked questions

Q. How to generate e-way bill, if the goods of one invoice is being moved in multiple vehicles simultaneously? #

Ans: Where the goods are being transported in a semi-knocked down or completely knocked down condition, the EWB shall be generated for each of such vehicles based on the delivery challans issued for that portion of the consignment as per CGST Rule 55 which provides as under:

(a) Supplier shall issue the complete invoice before dispatch of the first consignment;

(b) Supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;

(c) Each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and

(d) Original copy of the invoice shall be sent along with the last consignment

Note that multiple EWBs are required to be generated in this situation. That is, the EWB has to be generated for each consignment based on the delivery challan details along with the corresponding vehicle number.

Q. What is to be done (in an EWB) if the vehicle breaks down? #

Ans: If the vehicle breaks down, when the goods are being carried with an EWB, then transporter can get the vehicle repaired and continue the journey in the same EWB. If he has to change the vehicle, then he has to enter the new vehicle details in that EWB, on the eway bill portal, using ‘Update vehicle number’ option in Part B and continue the journey in new vehicle, within the original validity period of e-way bill.

Q. Can the e-way bill entry be assigned to another transporter by authorized transporter? #

Ans: The authorized transporter can assign the e-way bill to any enrolled or registered transporter for further transportation of the goods. Subsequently, the new transporter can only update the Part-B of the EWB.

Q. Can I use different modes of transportation to carry the goods having an e-way bill? If so, how to update the details? #

Ans: Yes. One can transport goods through different modes of transportation – Road, Rail, Air, Ship. However, PART-B of e-way bill have to be updated with the latest mode of transportation or conveyance number using ‘Update vehicle number/mode of transport’ option in the Portal. That is, at any point of time, the details of conveyance specified in the e-way bill on the portal, should match with the details of conveyance through which goods are actually being transported.

Q. How does the taxpayer or recipient come to know about the e-way bills generated on his GSTIN by other person/party? #

Ans: As per the rule, the taxpayer or recipient can reject the e-way bill generated on his GSTIN by other parties. The following options are available for him to see the list of e-way bills:

• He can see the details on the dashboard, once he logs into the system.

• He will get one SMS everyday indicating the total e-way bill activities on his GSTIN.

• He can go to reject option and select date and see the e-way bills. Here, system shows the list of e-way bills generated on his GSTIN by others.

• He can go to report and see the ‘EWBs by other parties.

Q. In case of public transport, how to carry e-way bill? #

Ans: In case of movement of goods by public transport, e-way bill shall be generated by the person who is causing the movement of the goods, in case of any verification, he can show e-way bill number to the proper officer.

What about Part B updation – Author’s view – Vehicle No should also be updated by the registered person.

Q. I am dealer in tractors. I purchased 20 tractors from the manufacturer. These tractors are not brought on any motorized conveyance as goods but are brought to my premises by driving them. Also, these tractors have not got the vehicle number. Is e-way bill required in such cases? #

Ans: E-way bill is required in such cases. The temporary number or any identifiable number with the tractor have to be used for filling details of the vehicle number for the purpose of e-way bill generation.

7. Verification of documents / conveyance and inspection / verification of goods

The Commissioner or proper officer authorized by the Commissioner can intercept any conveyance to verify an e-way bill or carry out physical verification of conveyance. If an intercepted vehicle has been detained for more than 30 minutes without sufficient cause, the transporter may upload the REPORT of DETENTION in Form EWB-04 on the portal. After inspection, the Proper Officer shall upload the following details in Form EWB-03

Particulars	Time limit	Part
Summary Report of Inspection	24 HOURS of Inspection	Part A of EWB-03
Final Report of Inspection	3 DAYS of Inspection	Part B of EWB-03

On sufficient cause being shown, the time limit for uploading the final report in Part B of FORM EWB-03, can be extended but not exceeding 3 days.

No second physical verification of the same conveyance for the goods within the same State or UT, unless specific information of tax evasion is made available subsequently.

8. Procedure for interception, detention, confiscation and release of goods

a. Any vehicle may be intercepted by the proper officer for verification. Upon interception the person-in-charge of conveyance shall produce the documents relating to the goods and conveyance. An e-way bill number available with the person-in-charge of the conveyance, either in the form of a printout, SMS or written on the invoice would be held to be valid. If the person in-charge of vehicle fails to furnish the prescribed documents, the proper officer may intend to undertake an inspection, and record the statement of the person-in-charge in Form GST MOV-01.

In this context it would be important to note the judgment of the Hon’ble Court of Allahabad – The goods were not accompanied by EWB. The petitioner pleaded that due to technical fault of the State Website EWB- 02 could not be generated before the movement of the goods. The EWB was generated after interception of vehicle but before seizure order. The Hon’ble Court of Allahabad held that, EWB has been downloaded much before the seizure order, and therefore there was no justification in the impugned seizure order (Bhumika Enterprises [2018] 92 taxmann.com 343 (Allahabad) 03-04-2018).

b. Upon interception of conveyance, if person in-charge of conveyance fails to produce e-way bill and other prescribed documents or where e-way bills along with prescribed documents are produced, upon verification of documents, if the proper is of the opinion that inspection of goods is required to be done, he shall give an order for physical verification of the conveyance and goods in FORM GST MOV-2 specifying the reasons.

c. Proper officer shall prepare summary report of inspection in Part A of FORM GST EWB-03 and upload it on the common portal within 24 hours. The inspection proceedings shall conclude within 3 working days from issue of the order and could be extended by another 3 days by the officer with Commissioner’s approval. Upon completion of inspection, the proper officer shall issue:

• Report of the verification in FORM GST MOV–04

• Report in Part B of FORM GST EWB-03, within 3 days of inspection

If no discrepancies are found, a release order to be issued in FORM GST MOV-05.

d. Order for detention of goods giving details of contravention and discrepancies will be issued in FORM GST MOV-06. Thereafter, the proper officer will issue notice specifying tax and penalty in FORM GST MOV-07 and requiring the owner of goods to show cause within 7 days from receipt of notice as to why the proposed tax and penalty should not be initiated. The owner of the goods may also choose to get the goods released by –

• Furnishing a bond in FORM GST MOV-08

• Security in the form of bank guarantee equal to the amount payable u/s. 129.

If the owner of goods comes forward to pay tax and penalty – the proper officer shall issue an Order in FORM GST MOV-05 and release the goods and conveyance.

In case of any objections against the amount of tax and penalty, the officer shall issue a speaking order in FORM GST MOV – 09 after considering the objections and shall thereafter issue an order in FORM GST MOV-05 and release the goods and conveyance.

If the owner of goods does not come forward to pay tax and penalty proper officer shall upload order in FORM GST MOV-09 on common portal by which the said demand shall be added to the electronic liability ledger of the person.

e. If tax and penalty not paid within 7 days from the date of the issue of FORM GST MOV-06, notice in FORM GST MOV-10 will be issued to show cause as to why goods should not be confiscated and why tax, penalty and other charges should not be collected.

The proper officer shall give the owner of goods an option to pay fine in lieu of confiscation of goods. The fine will be in addition to tax and penalty. The fine leviable should not exceed market value of goods confiscated less the tax chargeable thereon.

No order for confiscation of goods and imposition of penalty should be issued without giving the owner of goods an opportunity of hearing. An order of confiscation of goods/ conveyance shall be passed in FORM GST MOV-11 and thereupon the title of goods will vest with the Government. The owner of the goods will be given time of 3 months to pay tax, penalty, fine and secure release of the said goods/conveyance. If within 3 months the owner of goods does not pay fine, tax and penalty, the proper officer shall dispose of the goods or conveyance and deposit the sale proceeds with the Government.

9. Some features enhanced in e-way bill

Enhancements have made in e-way bill portal effective 1-10-2018 to avoid errors while generating e-way bill. The features are summarized as under:

a. Display of only relevant document names in “Document Type” dropdown list based on the selected Transaction “Sub Type”: To avoid errors while uploading the type of document, the portal has been modified by providing selection of document sub-type and document type against document sub-type by way of drop-down list.

b. Auto-population of State name upon entering the PIN code: Upon entering the pin code in ‘Bill From’ and ‘Bill To’ fields, State name will be auto populated. In exceptional cases where one pin code belongs to more than one state (e.g. some places in Hyderabad & Telangana), system will show the names of the concerning states in the drop down. User can then select the actual state and proceed further.

c. Auto-population of Standard rates for tax: Tax payer has to select the applicable tax rate slab (in %) from the dropdown and based on this, the system calculates and auto-populates the CGST, SGST, IGST & CESS amount etc. A new tax rate field namely “CESS Non Advol Rate” has been introduced where in the ‘CESS non-Advol Tax rate’ in Rupees can be selected by the tax payer as applicable. This is done to avoid chances of errors in entering the tax rates and also to match the values in the invoice and e-way bill.

d. Additional fields for entering the invoice amount: The additional fields for entering the amounts namely ‘CESS Non-Advol Value’ & ‘Other Amount (+/-)’ have been introduced. ‘Other Amount’ column can be used, to enter any other charges written in the invoice or any discount provided, so that ‘Total Invoice Value’ will match with the Invoice for which e-way bill is being generated. The system will not auto-populate the CESS Non Advol amount as it depends upon the quantity and unit. Therefore, the tax payer has to manually enter the same in ‘CESS non-Advol. Amount’ field.

e. Alert through SMS and pop-up, in case the total invoice value is more than ₹ 10 Crores: SMS will also be sent to the generator alerting him that invoice value of EWB is more than ₹ 10 cr. This will assist him to correct/cancel if it has been entered wrongly.

f. Transporter ID is made compulsory for generating Part-A slip: E-way bill can be generated by the tax payer after entering the Part-B. If transporter is going to update the Part-B, then for generation of Part-A one has to compulsorily enter the transporter id to generate the ‘Part-A Slip’.

TRANSIN or Transporter ID is 15 digit unique number generated by EWB system for unregistered transporter, once he enrolls on the system which is similar to GSTIN format and is based on state code, PAN and Check sum digit. The person generating Part-A should obtain the transporter id form the transporter for entering the same.

Source: e-way bill system Note released by NIC.

10. Enhancements in e-way bill effective April 2019

1. Auto calculation of distance based on PIN Codes: E-Way bill system has enhanced with auto calculation of distance between the source and destination, based on the PIN Codes. The e-way bill system will calculate and display the estimated motorable distance between the supplier and recipient addresses. User is allowed to enter the actual distance as per the movement of goods. However, it will be limited to 10% more than the auto calculated distance displayed.

2. Blocking generation of multiple e-Way Bills on one Invoice/Document: If the e-way Bill is generated once with a particular invoice number, then none of the parties – consignor, consignee or transporter, can generate the e-way Bill with the same invoice number. One Invoice, One e-way Bill policy will be followed.

3. Report on list of e-way Bills about to expire soon: Taxpayers or transporters can now view the list of e-way Bills about to expire in a period of 4 days.

Source: e-way bill system document released 
by NIC.

11. Penalty for non-furnishing of e-way bill and prescribed documents

Section 129 of the CGST Act, 2017 provides for levy of penalty for non-furnishing of e-way bill and other prescribed documents to the proper officer as under:

Nature of goods	Penalty where the owner comes forward to pay tax and penalty	Where the owner does not come forward to pay tax and penalty
Taxable Goods	100% of tax payable on such goods	50% of value on such goods  (Less)  Tax amount paid thereon
Exempt Goods	2% of the value of goods  or ₹ 25000/- (whichever is lesser)	5% of the value of goods  or ₹ 25000/- (whichever is lesser)

However, Circular No. 64/38/2018-GST dated 14.09.2018 has been issued by Central Board of Indirect Taxes and Customs wherein penalty / proceedings should not be initiated in respect of following situations:

a. Spelling mistakes in the name of the consignor or the consignee but the GSTIN, wherever applicable, is correct;

b. Error in the pin-code but the address of the consignor and the consignee mentioned is correct, subject to the condition that the error in the PIN code should not have the effect of increasing the validity period of the e-way bill;

c. Error in the address of the consignee to the extent that the locality and other details of the consignee are correct;

d. Error in one or two digits of the document number mentioned in the e-way bill;

e. Error in 4 or 6 digit level of HSN where the first 2 digits of HSN are correct and the rate of tax mentioned is correct;

f. Error in one or two digits/characters of the vehicle number.

The circular further provides that for the above errors a penalty of ₹ 500/- each and CGST Act and State GST Act should be imposed in FORM GST DRC-07. This circular is a good move from the Government.

Section 126 of the CGST Act, 2017 provides that no penalty shall be imposed for minor breaches of tax regulations or procedural requirements and in particular, any omission or mistake in documentation which is easily rectifiable and made without fraudulent intent or gross negligence. Explanation to the Section provides that an omission or mistake in documentation shall be considered to be easily rectifiable if the same is an error apparent on the face of record. In terms of this Section if there is an omission to carry e-way bill, but there are other prescribed documents (viz. tax invoice, bill of supply, delivery challan etc) available with the person in-charge of the conveyance, then in the authors view in terms of Section 126 of the CGST Act, 2017 remedy for waiver of penalty can be pleaded. It will have to be seen whether it will stand the test of law.

12. Role of Tax Professionals

Tax professionals can play a vital role by educating their clients the requirement of raising of e-way bills which is mandated under the law. Tax professionals should verify the authenticity of notice issued by the officer in case where goods are detained and ensure that replies are filed within the time prescribed as explained supra. To inform the clients the following precautions to be taken:

1. Valid e-way bill is generated only after Part-A and Part-B is entered. Generation of unique number upon submission of Part-A is not an e-way bill.

2. To cancel the e-way bill within 24 hours of there is any error in generation of e-way bill or goods are not transported.

3. To train the staff to enter the details correctly in the e-way bill portal.

4. Penal consequences should be explained for failure to raise e-way bill.

FAQ Source

# – FAQ’s on e-Way bill CBIC website

@ – Source E-publication on E-way Bill under GST – ICAI July, 2018 Edition

B. GST Annual Return (Form GSTR-9) / GST Audit (Form GSTR-9C)

I. Annual return in Form GSTR-9

1. Every person registered under the GST Laws (other than input service distributor, person registered Section 51 of Central Goods and Services Tax Act, 2017 (for brevity, ‘CGST Act’) for remittance of TDS, person registered under Section 52 of the CGST Act for remittance of TCS and non-taxable person) is required to file Annual return. Annual return should be filed for every registration (GSTN wise) taken in each State separately.

2. Form GSTR-9 is prescribed for regular dealers (i.e. non-composition dealers) and Form GSTR-9A for composition dealers. The due date for filing Form GSTR-9 and Form GSTR-9A for the period July 2017 to March 2018 is June 30, 2019.

3. Some of the important areas of Form GST-9 (for brevity, ‘Form’) are summarized below:

A. The Form requires disclosure of ‘legal name’ and ‘trade name’. Legal name would be the name which is registered under the Statute while a trade name would be a name used by trade and industry to symbolize the business. For instance, ‘Sarovar Limited’ may be a legal name, ‘Sars’ could be trade name. Therefore, caution must be exercised while disclosing legal name and trade name in the Form. If the registered person does not have a trade name, then ‘Not Applicable’ can be stated in the Form.

B. All outward supplies and inward supplies made during the financial year (for the financial year 2017-18 the disclosure is for the period July 2017 to March 2018) is required to be disclosed in the relevant parts of the Form.

C. Outward supplies – Following outward supplies are required to be disclosed in the Form:

• B2C supplies: All supplies made to unregistered person (B2C), including supplies made through e-commerce operator, net of debit note / credit notes should be disclosed in Tables 4A of the Form. The details of B2C can be populated from Table 5, 7, 9 and 10 of Form GSTR-1 filed.

• B2B supplies: Supplies to registered persons including supplies made through e-commerce operator (excluding supplies liable to tax under reverse charge mechanism) should be disclosed in Table 4B of the Form (B2B). Effect of debit note / credit note should not be given in this table. The details of B2B can be populated from Table 4 of GSTR-1 filed. The details of credit notes / debit notes to be disclosed separately in Table 4I and 4J of the Form respectively. Supplies on which recipient is liable to pay tax under reverse charge mechanism to be disclosed in Table 5C of the Form.

• Zero rate supplies: Zero rated supplies other than supplies to SEZ to be disclosed in Table 4C of the Form. Here exports made with payment of tax only should be disclosed. Effect of debit note / credit note should not be given in this table. The details of B2B can be populated from Table 6A of GSTR-1 filed. The details of credit notes / debit notes to be disclosed separately in Table 4I and 4J of the Form respectively.

Export without payment of tax be disclosed in Table 5A of the Form. The details of credit notes / debit notes to be disclosed separately in Table 5H and 5I of the Form respectively.

• SEZ supplies: Supplies to SEZ with payment of tax to be disclosed in Table 4D of the Form. Here supplies to SEZ with payment of tax only is to be disclosed. Effect of debit note / credit note should not be given in this table. The details of B2B can be populated from Table 6B of GSTR-1 filed. The details of credit notes / debit notes to be disclosed separately in Table 4I and 4J of the Form.

Suppliers to SEZ without payment of tax be disclosed in Table 5B of the Form. The details of credit notes / debit notes to be disclosed separately in Table 5H and 5I of the Form respectively.

• Deemed exports: Deemed exports to be disclosed in Table 4E of the Form Effect of debit note / credit note should not be given in this Table. The details can be populated from Table 6B of GSTR-1 filed. Following supplies constitute deemed exports in terms of Section 147 of the CGST Act read with Notification 48/2017 dated 
18-11-2017:

– Supply of goods by a registered person against Advance Authorisation

– Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation

– Supply of goods by a registered person to Export Oriented Unit

– Supply of gold by a bank or Public Sector Undertaking specified in the notification No. 50/2017-Customs, dated the 30th June, 2017 against Advance Authorisation.

The details of credit notes / debit notes to be disclosed separately in Table 4I and 4J of the Form.

• Unadjusted advances: Unadjusted advances (i.e. tax paid on advance and tax invoice not raised) on which taxes have been remitted should be disclosed in Table 4F of the Form. Tax on advances received for supply of goods (other than composition dealers) is exempt from tax vide Notification No. 66/2017 – Central Tax dated 
15-11-2017.

• Inward supplies liable under RCM: Inward supplies liable to tax under reverse charge mechanism (RCM) to be disclosed in Table 4G of the Form. Following supplies are liable under RCM to be disclosed:

– Supply of notified goods (Notification No. 4/2017-Central Tax (Rate) dated 28-6-2017) / notified service (Notification No. 13/2017-Central Tax (Rate) dated 28-6-2017 under Section 9(3) of the CGST Act, 2017.

– Supply of goods / services from unregistered person. This provision was suspended from 13-10-2017.

– Import of services.

• Exempted and Nil rated supplies: To be disclosed in Table 5D and 5E respectively of the Form. The details can be populated from Table 8 of GSTR-1 filed. The details of credit notes / debit notes to be disclosed separately in Table 5H and 5I of the Form respectively.

• Non-GST supplies: To be disclosed in Table 5F of the Form. Following transactions are Non-GST supplies:

– High Sea Sales

– Supply of alcoholic liquor for human consumption

– Supply of petroleum crude, HSD, Motor spirit, natural gas and ATF

– Transactions enlisted in Schedule III

• Amendments to invoices relating to outward supplies reported in July 2017 to March 2018 in Form GSTR-1 made during April 2018 to September 2018 by way of increase / decrease in value of supplies / tax should be declared in Table 10 and Table 11 respectively. Differential tax paid, if any, on account of this adjustment should be disclosed in Table 14 of the Form.

Any outward supplies which were not disclosed in Form GSTR-3B during the period July 2017 to March 2018 can be disclosed in the respective tables in Form GSTR-9.

D. Inward supplies

• Following value of inwards supplies and tax on the same of which input tax credit (ITC) is availed needs to be captured to disclose in Table 6 of the Form

– Supplies from registered person including services from SEZ bifurcating inputs, Capital goods and input services – Table 6B of the Form.

– Supplies from unregistered person liable to tax under reverse charge mechanism bifurcating inputs, Capital goods and input services – Table 6C of the Form.

– Supplies from registered person liable to tax under reverse charge mechanism bifurcating inputs, Capital goods and input services – Table 6D of the Form.

– Import of goods including supplies from SEZ bifurcating inputs and capital goods – Table 6E of the Form.

– Import of services – Table 6F of the Form.

– Input tax credit received from input service distributor (ISD) – Table 6 of the Form

– Input tax credit reclaimed which was reversed – Table 6H of the Form. For instance, ITC reversed due to non-payment to vendors within 180 days from the date of invoice and reclaimed upon payment will be disclosed here. ITC which has been availed and reversed during 2017-18 and reclaimed in 2018-19 should not be disclosed in this Table.

– Transitional credit claimed in Tran-I and Tran-II – Table 6K and 6L respectively of the Form.

Total ITC in Table 6A is would be auto populated by the GSTN portal in the Form from Table 4A of Form GSTR 3B

• Following details of ITC reversed and ineligible ITC needs to be captured to disclose in Table 6 of the Form

– ITC reversed for non-payment to vendors within 180 days from the date of invoice – Table 7A of the Form.

– ITC reversed of ISD – Table 7B of the Form.

– Reversal of ITC of input and input services attributable to non-business supplies and exempt supplies as determined in terms of Rule 42 of the CGST Rules, 2017- Table 7C of the Form.

– Reversal of ITC of capital goods attributable to non-business supplies and exempt supplies as determined in terms of Rule 43 of the CGST Rules, 2017- Table 7D of the Form.

– Blocked credits in terms of Section 17(5) of the CGST Act, 2017- Table 7E of the Form.

– Reversal of Tran-I and Tran-II credit – Table 7E and Table F respectively of the Form.

It should be noted that total ITC in Table 6A would be auto populated by the GSTN portal in the Form from Table 4A of Form GSTR 3B. Table 4A of Form GSTR 3B does not include blocked credits under Section 17(5) of the CGST Act, 2017. There seems to be some anomaly in the Form since sum total of ITC of Table 6O of the Form does not include blocked credits under Section 17(5) of the CGST Act, 2017 but in Table 7 of the Form blocked credits under Section 17(5) of the CGST Act, 2017 forms part of ineligible credits which is then deducted from total credits availed in Table 6O leading to disallowance of credits which never formed part of availment of credits.

• ITC of inward supplies received during July 2017 to March 2018 but availed in From GSTR-3B between April 2018 to September 2018 should be disclosed in Table 8C and Table 13 of the Form. The Form may be amended in due course to mention the period up to March 2019 instead of September 2018 as the time limit for availing ITC for the period July 2017 to March 2018 has been extended till the due date of filing Form GSTR-3B return for the month of March 2019. Such ITC should not be disclosed in Table 6 of the Form.

• Input tax credits wrongly claimed (for instance credit of blocked credit claimed or non-reversal of ITC by applying Rule 42 / 43 of CGST Rules, 2017) during July 2017 to March 2018 but reversed in financial year 2018-19 should be disclosed in Table 12 of the Form.

E. Refund and demand of tax: Details of refund claimed, sanctioned and rejected and details of taxes demanded, paid and pending to be disclosed in Table 15 of the Form.

F. Information of other supplies:

• Supplies received from composition dealers to be declared – Table 16A of the Form.

• Value of supply and tax in respect of inputs sent to job work and not received back by the principal within 1 year of their dispatch and capital goods (other than moulds, dies, jigs and fixtures) sent for job work and not received back by the principal to be disclosed – Table 16B of the Form.

• Value of supply and tax of goods sent on approval basis and not received within 180 days from date of removal to be disclosed – Table 16C of the Form.

G. HSN summary

• Outward supplies – HSN wise summary of outward supplies namely unit quantity code, total quantity, taxable value, rate of tax and tax to be disclosed (Disclosure based on Table 12 of GSTR-1 filed for the financial year) – Table 17 of the Form

Threshold limit of turnover (₹)	HSN digits
Up to 1.5 crores	Optional
>1.5 crores up to 5 crores	2 digits
Above 5 crores	4 digits

UQC (Unit quantity code) details is to be declared net of returns

• Inward supplies: HSN wise summary of inward supplies namely unit quantity code, total quantity, taxable value, rate of tax and tax to be disclosed where such supplies independently account for 10% or more of total inward supplies – Table 18 of the Form.

H. Late fee: If annual return is filed belatedly, details of late fee to be provided in Table 19 of the Form. The late fee for delay in filing of Annual Returns is ₹ 200 per day (₹ 100/- CGST + ₹ 100/- SGST) subject to a maximum of 0.5% of the turnover in the State.

I. Additional Liability

• Towards the end of the return, taxpayers shall be given an option to pay any additional liability declared in the Form GSTR 9, through FORM DRC-03.

• Taxpayers shall select “Annual Return” in the drop down provided in FORM DRC-03.

• It may be noted that such liability can be paid through electronic cash ledger only.

III. Audit under Goods and Services Tax law

1. In terms of Section 35(5) read with Section 44(2) of the CGST Act and the corresponding Rule 80(3) of the Central Goods and Services Tax Rules, 2017 (for brevity, ‘CGST Rules’), every registered person whose turnover in a financial year exceeds two crore rupees has to get his accounts audited by either a Chartered Accountant or a Cost Accountant and submit copies of the audited annual accounts, annual return in Form GSTR-9 along with the reconciliation statement in Form GSTR-9C by December 31 of the following year.

2. The due date for filing annual return in Form GSTR-9 and GSTR-9A for the period July 01, 2017 to March 31, 2018 has been extended till June 30, 2019 by inserting Explanation to Section 44 of the CGST Act, 2017. Section 44(2) of the CGST Act, 2017 read with Rule 80(3) of the CGST Rules, 2017 require that every registered person whose aggregate turnover during a financial year exceeds ₹ 2 crore during a financial year shall file annual return along with a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C electronically. Accordingly, since the due date for filing the annual return for the period July 01, 2017 to March 31, 2018 has been extended till June 30, 2019, the due date for filing a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C electronically stands extended till June 30, 2019.

3. Section 35(5) of the CGST Act uses the term ‘turnover’ whereas Rule 80(3) of the CGST Rules uses the term ‘aggregate turnover’. The term turnover is not defined in the CGST Act; the term aggregate turnover has been defined in the CGST Act. The expression turnover in State or turnover in Union Territory is defined. In this context the following is relevant to be understood

• Aggregate turnover is PAN based while turnover in a State / UT is similarly worded except to the extent that turnover in a State / UT is limited to a State

• It is therefore, reasonable to interpret that the word turnover used in section 35(5) ought to be understood as aggregate turnover

• For the financial year 2017-18, the GST period comprises of 9 months whereas the relevant section 35(5) uses the expression financial year. Therefore, in the absence of clarification from government, also to avoid any cases of default, it is reasonable to understand that to reckon the turnover limits prescribed for audit i.e., ₹ 2 crores one has to reckon the turnovers for the whole of the financial year which would also include the first quarter of the financial year 2017-18.

4. Section 2(13) of the CGST Act defines “audit” to mean “the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made thereunder”.

5. Section 2(94) of the CGST Act defines the term “registered person” to mean “a person registered under Section 25 of the CGST Act but does not include a person having a Unique Identification Number”. It would be relevant to note the difference between “taxable person” and “registered person”. While the former refers to a person registered / liable to registered under GST Law, the latter refers to only such person who has been granted a registration certificate. Hence, for the Financial Year 2017-18, requirements of annual returns and conducting of audit are applicable only for those tax payers who are registered under GST law in the Financial Year 2017-18. Any tax payer who obtains registration after March 31, 2018 is not required to file annual returns or get his accounts audited for the Financial Year 2017-18.

Further, in case a tax payer has, say, three locations of operations in three different States and has obtained registration for two locations in the Financial Year 2017-18 but the third location was registered under GST only in the Financial Year 2018-19, then the annual returns and audit requirements for the Financial Year 2017-18 will be required only for the first two branches which were registered during the Financial Year 2017-18.

6. It would also be relevant to note that Form GSTR-9C is required to be prepared by considering the details of each GST registration. However, the Financial Statements are prepared for the entity as a whole and State level bifurcation of data may not be available. The State wise details will have to extracted from the accounting records for the purpose of Annual Return as well as Financial Statements.

7. Annual Return in Form GSTR-9 is not required to be filed by input service distributor, person registered Section 51 of Central Goods and Services Tax Act, 2017 (for brevity, ‘CGST Act’) for remittance of TDS, person registered under Section 52 of the CGST Act for remittance of TCS and non-taxable person in terms of Section 44(1) of the CGST Act. However, such exclusion under section 44(2) of the CGST Act is not provided for filing of reconciliation statement in Form GSTR 9C for person mentioned in section 44(1) of the CGST Act. Therefore, the question that arises for consideration is as to whether an input service distributor, person registered for deduction of tax at source under section 51 of the CGST Act, person registered for collection of tax at source under section 52 of the CGST Act, a casual taxable person and a non-resident taxable person are required to file Form GSTR-9C. On this aspect it may be noted that section 44(2) of the CGST Act requires a registered person to file annual return along with a copy of the audited annual accounts and a reconciliation statement in Form GSTR 9C. On a combined reading of section 44(1) and 44(2) of the CGST Act, the author is of the view that since annual return is not applicable to input service distributor, person registered for deduction of tax at source under section 51 of the CGST Act, person registered for collection of tax at source under section 52 of the CGST Act, a casual taxable person and a non-resident taxable person, are not required to file Form GSTR-9C. The definition of registered person excludes persons holding Unique Identity Number – Specified Agency of the UN or such other notified person; therefore, audit is not applicable to such person. In summary audit under the GST law is not applicable to the following persons:

• Persons not registered under GST

• Persons who have opted for composition scheme

• Input Service Distributor

• Persons registered under Section 51 and Section 52 for deduction / collection of tax at source

• Casual Taxable Person

• Non Resident Taxable Person

• Persons holding UIN – Specified Agency of the UN or such other notified person

8. Form GSTR-9C has two parts

• Part A – is a Reconciliation Statement

• Part B – Certificate to be issued by a Chartered Accountant or Cost Accountant. Certificate is divided into 2 parts:

– Part I when the Form GSTR-9C is certified by person who has conducted audit of the financial statements

– Part II when the Form GSTR-9C is certified by person who has not conducted audit of the financial statements.

Difference in Certification under Part I and Part II is provided in a tabulation below

Particulars	Part I	Part II
To be certified by	Chartered Accountant who has conducted audit of the financial statements	Any other Chartered Accountant
Financial Statements	Auditor to confirm that he has examined the Financial Statements	Auditor to merely state that he has annexed the Financial Statements (including other related documents)
Obtaining Information	Specifically confirm if all the information has been provided and also mention if any information was not provided or partially provided	No such requirement
Location of Books of Account	Confirm that the balance sheet, profit and loss account and cash flow statements are in agreement with books of account maintained at principal place of business and additional place of business within the State	No such requirement

9. An overview of various parts of Form GSTR-9C (for brevity, ‘Statement’) is discussed in the ensuing paragraphs:

A. Basic details: Financial year; GSTIN; Legal Name and Trade Name (discussed in paragraph III (4) (a) supra).

B. Reconciliation of turnover declared in audited financial statement with turnover declared in Annual Return in Form GSTR-9 (Part II of the Statement): This part of the Statement seeks to determine the various reconciliation items for difference between turnover declared in audited financial statement with turnover declared in Annual Return in Form GSTR-9. The reconciliation begins with turnover from the financial statements (GSTIN wise) and seeks to arrive turnover as per Annual Return in Form GSTR-9; the reconciliation items is discussed below:

a. Subtraction to be made –

• Unbilled revenue at the beginning of the financial year

• Turnover for the period April 2017 to June 2017

• Unadjusted advances at the beginning of the financial year

• Credit notes issued after the end of the financial year

• Turnover under composition scheme

• Supplies by SEZ to DTA – since it considered as import of goods by DTA if the bill of entry for such supplies is filed by DTA

b. Additions to be made –

• Unbilled revenue at the end of the financial year

• Unadjusted advances at the end of the financial year – Since advances on goods are not taxable from November 15, 2017, this would ideally include unadjusted advances received for services

• Deemed Supplies under Schedule I – branch transfer of goods, cross charge to branches, supply of goods / services to related persons

• Credit Notes not permissible under GST

• Trade Discounts not permissible under GST

• Adjustment in turnover due to Valuation Rules – valuation under GST law generally enhances the value of supply and hence these adjustments will be added to the financial statement turnover though the format suggests that adjustment may require subtraction as well.

c. The derived Taxable Turnover is to be compared with the Actual Taxable Turnover reported in the Annual Return in Form GSTR 9. Tables have been provided in the Statement to list out the reasons for differences between these turnovers. Any irreconcilable difference would require payment of taxes.

C. Rate wise tax liability reconciliation (Part III of the Statement):

a. The Taxable Turnover is required to be classified into various rates including turnover of where the recipient is required to pay taxes and arrive at the GST Payable.

b. The above GST payable arrived at is to be compared with he GST Paid in Annual Return in Form GSTR-9 and tables have been provided to list out the reasons for differences between payable and paid amounts. Any irreconcilable difference would require payment of taxes.

D. Reconciliation of input tax credit (Part IV of the Statement): This part of the Statement seeks to determine the various reconciliation items for difference between input tax credit (for brevity, ‘ITC’) availed as per audited financial statement with ITC claimed in Annual Return in Form GSTR-9. The reconciliation begins with ITC availed as per the financial statements (GSTIN wise) and seeks to arrive turnover as per Annual Return in Form GSTR-9; the reconciliation items is discussed below:

a. Add ITC booked in earlier financial year claimed in current financial year – As this is the first year of GST, this should ideally be zero. However, as per instruction to the form, transitional credit which was booked in earlier years but availed during Financial Year 2017-18. In case the transitional credit is booked during the period July 2017-March 2018, the same would not be required to be reported here. This would primarily leave the Registered person with ITC which are carry forward balances of earlier taxes.

b. Subtract ITC booked in current financial year to be claimed in subsequent financial year – All amounts which are debited in books of accounts but not claimed as Credit should be reported here.

c. The details on ITC are required to be reported based on their grouping in the financial statements are as under:

Freight / Carriage	Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples
Power and Fuel	Royalties
Imported goods (Including received from SEZs)	Employees’ Cost (Salaries, wages, Bonus etc)
Conveyance charges	Bank Charges
Entertainment charges	Stationery Expenses (including postage etc.)
Repair and Maintenance	Other Miscellaneous expenses
Capital goods

The Statement requires details of ITC claimed and ITC eligible in respect of the above groupings which means that this part requires analysis and reporting of eligible ITC from the total ITC claimed by the registered person.

d. The total of the credit availed is matched with the actual ITC availed as claimed in annual return in Form GSTR-9 and tables have been provided to list out the reasons for differences between the credits. Any irreconcilable difference would require payment of taxes.

E. Auditor’s Recommendation on Additional Liability due to Non-Reconciliation (Part V of the Statement):

The auditor’s recommendation on the additional liability to be discharged by the taxpayer due to non-reconciliation of turnover or non-reconciliation of input tax credit. The auditor shall also recommend if there is any other amount to be paid for supplies not included in the Annual Return. Any refund which has been erroneously taken and shall be paid back to the Government shall also be declared in this table. Lastly, any other outstanding demands which is recommended to be settled by the auditor shall be declared in this Part.

F. Payment of additional tax: Towards, the end of the reconciliation statement taxpayers shall be given an option to pay additional taxes through Form DRC-3 as recommended by the auditor.

G. Certification of Form GSTR-9C: A practicing Chartered Accountant or Cost Accountant can certify this form. However, a Chartered Accountant who is an internal auditor of a tax payer is not allowed to get himself appointed as GST Auditor to ensure independence while certifying the GST records.

• Writing books of Account – Members are not permitted to write the books of account of their auditee clients. Attention is invited to “Guidance Note on Independence of Auditors” in this regard.

• Audit under Companies Act – The Audit under the Companies Act and the Audit under the CGST Act may be undertaken simultaneously.

• Tax Audit under Income-tax Act, 1961 – The Audit under Income-tax Act and the Audit under the CGST Act may be undertaken simultaneously

• Advisory Services – Advisory services, as mentioned under ICAI Guidelines for Management Consultancy and other Services, and Regulation 191 of the Chartered Accountants Regulations, 1988, may be rendered along with Audit under the CGST Act

(Source: Technical Guide on Annual Return & GST Audit – ICAI)

Importantly, an auditor may have to be careful in the manner in which he discloses the facts or legal issues in the report. He may have to provide adequate information and explanation with a view to make disclosure, furnish a note, make observations, qualify or quantify turnovers.

10. Penalty for Delay in Filing of Form GSTR 9C: There is no specific provision which provides for penalty in the event of delay in filing of Form GSTR-9C. Section 125 of the CGST Act provides for general penalty of up to ₹ 25,000/-. Similar provision is provided under the State GST law and effectively the penalty would be up to ₹ 50,000/- (₹ 25,000/- CGST + ₹ 25,000/- SGST).

There is another school of thought on this aspect. Section 44(2) of the CGST Act specifically provides that every person required to get an audit conducted will have to file Annual Returns as well as reconciliation statement in Form GSTR 9C. This would effectively mean that the annual returns and Form GSTR 9C will have to be filed together and non-filing of the same would lead to late fee as applicable to Annual Returns. The late fee for delay in filing of Annual Returns is ₹ 200 per day (₹ 100/- CGST + ₹ 100/- SGST) subject to a maximum of 0.5% of the turnover in the State.

An attempt has been made in this article to make the reader understand the basics of e-way bill, Annual Return in Form GSTR-9 and Reconciliation Statement in Form GSTR-9C under the GST law. This paper only provides a glimpse of the issues that may arise. This paper is written with a view to incite the thoughts of a reader who could have different views of interpretation. Disparity in views, would only result in better understanding of the underlying principles of law and lead to a healthy debate or discussion. The views written in this article is as on May 01, 2019.

[Source: Article printed in the souvenir of NTC held on 10th & 11th May, 2019 at Pune]