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e-Way Bill Exemption

Cases When e-Way Bill is Not Required

In India, the Goods and Services Tax (GST) law was implemented to address the shortcomings of the previous legislation. One of the key issues was that there wasn’t enough transparency between the taxpayers and the government.

Digitising the procedure is one of the ways the government will ensure openness under the GST regime. One such measure is the e-Way Bill. The below article describes all the cases where an e-Way Bill is not mandatory.

Specific Transactions List That are Exempted From e-Way Bill Generation

The following are transactional scenarios in which an e-Way Bill is not necessary:

  • An e-Way Bill is not required for items costing less than Rs. 50,000.(except in situations where e-way bill requirements must be followed, such as when moving handcrafted goods or supplies for interstate job work)
  • If a non-motorized vehicle is used to deliver commodities (Ex. Horse carts or manual carts)
  • Whenever commodities are moved:
  1. To an inland container depot (ICD) or a container freight station (CFS) for Customs clearance after passing via the port, airport, air cargo complex, and land customs station.
  2. Under a customs bond, from ICD or CFS to a customs port, airport, air cargo, etc.
  3. Under a customs bond, from one customs port or station to another.
  4. Goods carried with customs inspection or a customs seal.
  • Shipments of goods inside the specified area
  • Goods are transported in transit between Nepal and Bhutan.
  • If products are delivered to a weighbridge and returned to the business location covered by a Delivery Challan(DC) within 20 kilometres
  • When a consignor is a government or local authority shipping goods via rail.
  • Transporting goods to and from the Ministry of Defence.

No Late Fee for GSTR-1 & GSTR-3B Return

The major concession made to small businesses by the 31st GST Council is eliminating the late filing fee for GSTR-1, and GSTR-3B returns.

According to the GST Council, “Late fee shall be fully waived for all taxpayers if Form GSTR-1, Form GSTR-3B, and Form GSTR-4 for the months/quarters of July 2017 to September 2018 are provided after 22.12.2018 but on or before 31.03.2019.”

As a result, filing Form GSTR-1, GSTR-3B, and GSTR-4 before March 31, 2019, will not result in a late fee.

GST Annual Return Due Date Extended

Every organisation registered for GST must submit an annual GST return using the form GSTR-9.

The yearly GST return is typically due on December 31 of each year for the fiscal year that concluded on March 31 of the same calendar year.

The government has decided to extend the deadline for filing the GST annual report to June 30, 2019, given the tax system is new to India.

The GST Council has extended the deadline for filing the annual return from its initial extension of up to March 31, 2019, to June 30, 2019.

Rule 138 of GST

In accordance with the terms of rule 138 (14) of the CGST Rules, no e-way bills must be generated in the following circumstances:

  • When transporting the items listed below, an e-Way Bill is not necessary to be created:
  1. Petroleum gas that has been liquefied for delivery to consumers who fall under the NDEC’s (non-domestic exempted category)
  2. Kerosene sold through PDS;
  3. Department of Posts personnel transporting mail;
  4. Precious or semi-valuable stones, natural or produced pearls, precious metals, and metals plated in precious metals
  5. Jewellery, goods made by gold- and silversmiths, and other items
  6. Currency;
  7. items from the home and personal use;
  8. Unworked (as of 0508) and worked coral (9601)
  • Transporting goods from a customs port, airport, air cargo complex, or land customs station to an inland container depot or a container freight station for customs clearance does not require the use of e-Way Bills.
  • e-Way Bill generation is not necessary when a non-motorized mode delivers transportation items.
  • The following items do not need to have an e-Way Bill generated when being transported:
  1. Alcohol intended for human consumption
  2. Oil-based crude
  3. Accelerated diesel
  4. Driving spirit (commonly known as petrol)
  5. fossil fuels,
  6. Fuel for an aircraft turbine
  7. e-Way Bills are not necessary if there is no supply as defined by the provisions of Schedule III of the Act.
  • The creation of an e-Way Bill is not necessary when the products are being transported:
  1. From a customs port, airport, air cargo complex, or land customs station to an inland container depot or a container freight station under customs bond
  2. Between customs ports or stations, or from one customs station to another
  3. Under customs’ watch or with a customs seal;
  4. whether the cargo is transit freight coming from or going to Nepal or Bhutan
  5. If specific notifications exempt the transported goods from paying taxes
  • When the Central Government, a State Government, or a Local Government acts as a consignor and conveys products by rail, no e-Way Bill is required.
  • There is no need for an e-Way Bill when a defence formation acts as the consignor or consignee for the shipment of commodities.
  • e-Way Bill generation is unnecessary if the distance between the consignor’s place of business and the weighbridge is less than 20 km (miles) and the items are being transported for weighing purposes. A delivery challan, however, is required to go with the transfer of the items.
  • Other than for the transportation of de-oiled cake, the items listed in the schedule annex to Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 do not require the generation of an e-Way Bill.
  • No e-Way charge is required when carrying empty freight containers.

Documents to be Carried in Case e-Way Bill is not Required

An e-Way Bill will be an effective tool to monitor tax evasion at numerous locations and the flow of products.

When generating an e-Way Bill is unnecessary, the transporter must ensure a copy of the tax invoice or a bill of supply is carried.

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