GST - E-WAY BILL

The e-way bill for the inter-state movement has been advanced to February 1 from April 1, while the trial began from January 16. The e-way bill requires online pre-registration of goods before transportation under the new GST regime. Under the e-way mechanism, all goods worth over Rs 50,000 will have to be pre-registered online before they are moved for sale beyond 10 km. The e-way bill mechanism has been introduced in the GST regime to plug tax evasion loopholes. Tax evasion was one of the reasons cited by the government for the fall in revenue collection in October.

Modes of generation of the e-way bill:

1)Web online using browser on a laptop, desktop, phone etc.

2)Android-based mobile app on mobile phones

3)Via SMS through registered mobile number

4)Via API( Application Program Interface) i.e. integration of IT system of the user with e-way bill system for generation of the e-way bill.

5) Tool based bulk generation of e-way bills

6) Third party-based system of Suvidha providers

When an e-way is generated, a unique e-way bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter. As per the schedule of implementation, the nationwide e-way bill system will be ready to be rolled out on a trial basis latest by January 16, 2018. Trade and transporters will be able to use it on a voluntary basis from January 16.

E-way bill is generated when there is a movement of goods:

1) In relation to the supply.

2) For reasons other than a supply (say a return).

3) Due to inward supply from an unregistered person.

In this case, a supply can either be:

1) Sale – sale of goods and payment made

2) Transfer – branch transfers for instance

3) Barter/Exchange – where the payment is by goods instead of in money

Benefits:

1) Taxpayers or transporters need not visit any tax officers or check posts for generation of e-way bill or movement of goods through states.

2) No waiting time at check-posts and faster movement of goods thereby optimum use of vehicles or resources, since there are no check posts in GST regime.

3) User-friendly e-way bill system.

4) Easy and quick generation of e-way bill.

5) Checks and balances for smooth tax administration and process simplification for easier verification of e-way bill by tax officers.

GST – EVASION OF TAX

In a recent survey, it is found that the taxpayers have bypassed each and every strict tax vigilance until now as the taxpayers and businessman have been implementing their own ways to evade the taxes. The tax evasion experiments are been tried with the latest GST regime indicating the facts of protests against the provisions and clauses of GST which mandates matching of sales and purchase invoices and e-way bill to track the goods supplied.

As from the evident examples where the garments having an upper price tag of INR 1000 being taxed at 12 percent and lower than it taxed at 5 percent has made a lot of eruption in the industry making the garment prices slightly lower than before to evade the taxes and compliances both.

Also, some businessman had tried different ways of supplying their goods to evade the taxes through partial means. As the goods sent by trucks may have chances of getting checked every time at the check post, the businessman tried other means of transport like railways which have no means of checking of goods.

A tax consultant has confirmed that many of the businessmen of Gujarat and Surat have used the same bill thrice while transporting their goods to other parts of the nations via the means of trucks. he added that “I don’t know why it’s three times but it is an industry norm.” The industry also uses kuccha and pakka bill to differentiate the goods and taxation affair while destroying the pakka bill once the goods have been transported.

It is also in the reports that the taxpayers, especially from Delhi, have been taking illegal benefits of input tax credits in which it is stated that, “bill to one and shift to another” kind of strategy is followed. The tax evaders try to fake the invoices generated in the favour of the entities who are interested in input tax credit with those who don’t want the ITC.

GST - E-WAY BILL

GST E Way Bill registration or enrollment is an easy procedure on Indian Government official portal (ewaybill.nic.in) as we have described a very simple manner. To generate GST e way bill, there are certain steps which have to be followed by the taxpayers. To generate the GST e-way bill, it is mandatory to register on the e-way bill portal.

The businesses have to be registered and have to prepare GST e waybill every time they transport goods above the value of INR 50,000. There are various e-way bill validity period and distance meter which the government had authorized for the transportation of the goods. Finally after the decision of rolling out GST e-way bill across the nation, there are provisions and steps available on the complete GST e-way bill system and generating methods.

There are 3 types of taxpayers under the GST e-way bill system:

Registered Suppliers

Registered/Unregistered Transporters

Unregistered Suppliers

It must be noted that the GST e way bill is compulsory to be implemented from the 1st February for all the inter-state transactions and 1st June 2018 for all the intra-state transactions. The GST e way bill registration is compulsory for all the transporters and suppliers whether they fall under any threshold limit guided by the GST Council.

Here we expressed some of the early preparation steps which are needed to be taken care of by business units and transporters while implementing the e waybill:

Trial Run Across the Business Operation for Early Understanding

The government has recently announced the trial version of the GST e waybill across the nation and it strengthens the purpose of an e way bill by swiftly introducing the e-way bill concept into the mainstream application. The trial run of the e waybill will be from mid-January to February 1 as a deadline after which the GST e waybill is to be implemented for the interstate transactions.

Regenerating the Expired GST E Way Bill

In case, a truck breaks down middle of journey and its e way bill gets expired before its validity due to some unexplainable situations, he may get a new GST e way bill by regenerating the same and get a new number for the bill from the transporter which will help to extend the validity of the e waybill and resolve the purpose of transacting the goods.

Also one must keep in mind that the separate registration is needed for the e way to generate and operationalise within the environment of logistics.

Take Suggestions from Already E Way Bill Running Transport Companies

The most advisable tip for implementing anything new into the mainstream operation is to take advice. The dealers, business units and taxpayers should consult and take suggestions from the states and the declared of where the e way bill is already incorporated into the system. This will help the units to bring more ideas and solutions of problems which might be common to a particular state or community.

AADHAAR: Frequently Asked Questions

Q 1: UIDAI has all my data including biometrics, bank account, PAN, etc. Will they be used to track my activities?

A: Absolutely false. UIDAI database has only the following information ‑

(a) Your name, address, DOB, gender, date of birth

(b) Ten finger prints, two IRIS scans, facial photograph

(c) Mobile number and email ID.

Rest assured, UIDAI does not have your information about family, caste, religion, education, bank accounts, shares, mutual funds, financial and property details, health records etc. and will never have these information in its database. In fact, Section 32(3) of the Aadhaar Act 2016 specifically prohibits UIDAI from controlling, collecting, keeping or maintaining any information about the purpose of authentication either by itself or through any entity.

Q 2: But when I link my bank accounts, shares, mutual funds and my mobile phones with Aadhaar, will UIDAI not get these information?

A: Absolutely No. When you give Aadhaar number to your banks, mutual fund companies, mobile phone companies, they only send Aadhaar number, your biometrics (given at the time authentication) and your name etc. to UIDAI for verification for your identity. They do not send your bank account or its details to UIDAI.

So far as UIDAI is concerned, it responds to such verification requests by replying either ‘Yes’ or ‘No’. In few cases, if the verification answer is ‘Yes’, your basic KYC details (name, address, photo etc.) available with UIDAI are sent to the service provider.

Q 3: If someone gets to know my Aadhaar number, they can use it to hack my bank account.

A: Absolutely false. Just like by merely knowing your ATM card number, no one can withdraw money from the ATM machine, by knowing your Aadhaar number alone, no one can hack into your bank account and withdraw money. Your bank account is safe if you don’t part with your PIN/OTP given by banks. Rest assured, there has not been a single case of financial loss due to Aadhaar.

Q 4: Why am I being asked to link all my bank accounts with Aadhaar?

A: For your own security, it is necessary to verify identity of all bank account holders and link them with Aadhaar to weed out the accounts being operated by fraudsters, money-launderers, criminals etc. When every bank account is verified and linked with Aadhaar and then if anyone fraudulently withdraws money from your account, through Aadhaar such fraudster can easily be located and punished.

Therefore, by linking your bank accounts with Aadhaar, your accounts becomes more secure and not the other way around.

Q 5: Why am I being asked to verify and link my mobile numbers with Aadhaar?

A: For your own security and security of our country, it is necessary to verify identity of all mobile subscribers and link them with Aadhaar to weed out mobile numbers being operated by fraudsters, money-launderers, criminals etc.

It has been found that most criminals and terrorists get SIM cards issued in the name of fictitious and even real people without their knowledge and use them for committing frauds and crime.

When every mobile number is verified and linked with Aadhaar, then fraudsters, criminals, and terrorists using mobiles can be easily identified and punished in accordance with law.

Q 6: Can the mobile company store my biometrics taken at the time of SIM verification and use it for other purposes later?

A: No one, including, mobile phone companies can store or use your biometrics taken at the time of Aadhaar verification and linking. The biometrics are encrypted as soon as Aadhaar holder places his finger on fingerprint sensor and this encrypted data is sent to UIDAI for verification.

Regulation 17(1)(a) of the Aadhaar (Authentication) Regulations 2016, strictly prohibits any requesting entity which includes mobile phone companies, banks etc. from storing, sharing or publishing the finger-prints for any reason whatsoever and neither shall it retain any copy of such fingerprints. Any violation of this provision is a punishable offence under the Aadhaar Act 2016.

Q 7: Do NRIs need Aadhaar for banking, mobile, PAN and other services?

A: Aadhaar is only for residents of India. NRIs are not eligible to get Aadhaar. The respective service providers like banks and mobile companies have laid down NRI-specific exemptions. NRIs should simply tell the banks and other service providers such as credit card companies etc. that they are not required to provide Aadhaar numbers by virtue of being non-resident Indians.

Q 8: Aren’t the poor being denied essential services like pension & rations for want of Aadhaar?

A: No. It is clearly mentioned in Section 7 that until a person is assigned an Aadhaar number, he/she cannot be denied rations or pensions or such other entitlements for want of Aadhaar and the concerned department should verify the identity of the person using alternate means of identification as per the relevant Notification.

If any government official of a department denies the benefits or services for lack of Aadhaar or failure of verification for technical reasons contrary to the relevant notification, a complaint should be lodged against the higher authorities of those departments for such unlawful denials.

Q 9: Some agencies are not accepting eAadhaar. They insist on original Aadhaar. Why?

A: eAadhaar (downloaded Aadhaar) from UIDAI website is as legally valid as original Aadhaar issued by UIDAI . Both should be acceptable by all Agencies.

In fact downloaded e-Aadhaar has updated address etc. of the Aadhaar holders and therefore should be preferable.

If anyone refuses to accept downloaded e-Aadhaar, the Aadhaar holder may lodge complaints with higher authorities of those departments/ agencies.

Q 10: How has Aadhaar benefited the common man?

A: Aadhaar has empowered 119 crore Indians with a credible identity. Today the fact is that Aadhaar inspires more confidence and trust than any other identity document in India. For example, if you are an employer, which identity document will you prefer from your prospective employees? Or, just ask your maid servant, household help, driver, poor living in slums and villages as to how they are using Aadhaar to prove their identity to get jobs, open bank accounts, for rail travel, and to get various entitlements and government benefits directly into their bank accounts without middlemen. Ask them and they will tell you how empowered they are by having Aadhaar.

Q 11: We keep hearing in media that Aadhaar data was breached. Is it true?

A: Aadhaar database has never been breached during the last 7 years of its existence. Data of all Aadhaar holders is safe and secure. Stories around Aadhaar data breach are mostly cases of mis-reporting. UIDAI uses advanced security technologies to keep your data safe and secure and keeps upgrading them to meet emerging security threats and challenges.