Indore: Following Goods and Service Tax (GST), now central and state government both are focusing on re-launching E-way bill (EWB), which is presently put on hold till March 18. The state is also gearing up to put it on effect from next month. However, the new system does have hefty penalty provisions, even on transportation of tax exempted goods. Electronic-bill or E-way bill is an integral component of GST and thus, with the launch of the all new indirect tax regime on July 1 last, the facility too was rolled out. However, following unfamiliarity with GST, E-way bill and their complexities, the bill was put on hold across the country till March 18 and at the same time it was said that states may start the facility voluntarily.
Official sources said that along with Centre, Madhya Pradesh too was gearing up to implement it from next month and necessary preparations were being taken across the state. All three stake-holders of the system including transporter and SGST officials have been preparing themselves and undergoing training to implement the electronic system. Meanwhile, tax consultants in city informed that “Carrying of e-way bill by transporter will be mandatory in the case when the value of goods is than Rs 50,000. Anyone, including sender-receiver or transporter would have to generate e-way bill from E-way bill portal by filling up Form 1 and 2 and their parts A and B. In case of unregistered stakeholder, primarily this will be the responsibility of the registered trader to obtain them eway bill. The bill would have the duration under which the delivery of the goods will have to be done.”
They further added that unlike VAT regime, in case of violation of the e way bill provisions a hefty penalty measures were put in place. Under section 129 of the CGST Act, payment of the applicable tax and penalty equals to one hundred percent of the tax payable on such goods and in case of exempted goods, on payment of an amount equal to 2% of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods comes forwards for payment of such tax and penalty. However, on payment of the applicable tax and penalty equal to the 50% of the value of the goods reduced by tax amount paid thereon and in case of exempted goods or payment of an amount equal to five per cent of the value of goods or Rs 25,000, whichever is less, where the owner of the goods does not come forward for payment of such tax and penalty, experts explained.