Government Simplifies E-Way Bill Rules just two days before 26th meeting of GST Council.

Updates

Under GST regime, an e-waybill needs to be generated and carried for movement of goods above rupees 50000.

Previously on the Recommendation of GST Council,1st February 2018 was fixed as the date from which provisions related to e-way bill shall come into force w.r.t. interstate movement of goods. But due to technical glitches the same was postponed.

On 24th February 2018 group of ministers(GoM) recommended 1st April as the date for compulsory implementation of e way bill for interstate movement of goods. The Recommendation of GoM would be considered by the GST council in its 26th meeting on 10th March.

As per government, all the states shall have to compulsory implement National E-waybill for intra state movement of goods latest by 1st June.

To make it possible, to implement E-way Bill as per above Target Dates, Government makes following changes in E-Way Bill rules-

  • In case, sales invoice includes both taxable as well as exempted supplies then value of only taxable supplies will be considered considered for the purpose of e-way Bill. This is a major relief for FMCG companies.
  • Vehicle detail will not be required in case the moment of Goods is within 50 kilometers previously this limit was only 10 kilometers. This will help small businesses operating within 50 km.
  • One more big change in respect of intra state movement of goods is that E-way bill will not be required in case value of each consignment is less than 50000 even if total value of consignment in a vehicle is more than 50000. This is a major relief for E-Commerce and courier companies however government should consider to extend this relief to inter-state movement also.
  • The validity of E-way bill will now till the Midnight of the day immediately following the date of generation of e-way Bill previously the validity of e way bill was only 24 hours. For example if an E-way bill is generated on 8th march 2018 at 3 p.m. for movement upto 100 km.Then the validity of this e-waybill would be till the Midnight of 9th March 2018. But in the earlier rules the validity would have been only upto 3 p.m of 9th March 2018. For distance above 100 kilometre, one additional day is provided for each hundred kilometre.
  • Now a job worker can also generate E waybill in case of interstate movement of goods to a job worker irrespective of value of consignment.

Government brought these changes in E-Way bill rules just two days before 26th meeting of GST Council. Hence it is expected that Government is keen to implement mandatory E waybill for interstate movement of goods w.e.f 1st April 2018.