How does EWB impact your business?
In an Impact Session organised by BMPA, CA Pathik Shah, empanelled tax-expert focused on helping the member printers understand the operational nitty-gritty of e-way bill system.
On June 22, BMPA organised an Impact Session focused on the e-way bill (EWB) system. Powered by Renaissance and HP India, the session was conducted at JK Banquets in Prabhadevi. Over 100 printers and print professionals attended the session presented by CA Pathik Shah, BMPA’s empanelled tax-expert and a seasoned tax consultant.
A unique, user-focused EWB session
Often the real-life, hard-hitting issues faced by the people on the ground are missed despite the barrage of sessions conducted by many experts. BMPA’s sessions on GST focused on reaching out to its members with their queries, problems, and difficulties. The latest Impact Session focused on EWB was one amongst such sessions where the audience had ample opportunity to interact with the domain expert and get solutions.
By now the print professionals are well versed with the basic knowledge of the Goods and Services Tax implemented a year ago and EWB system that was rolled out from April this year. For example, all those attending the Impact Session knew about the Rs 50,000/-threshold beyond which the EWB is mandatory for any movement of goods, inter- or intra-state (Read the Legal and Compliance article for the latest update on page
26), however, in their interaction with CA Shah, many questions were answered about the day-to-day issues the printers faced and CA Shah responded to their queries while explaining the provisions in the GST and EWB laws.
Who generates the EWB?
Printers often work with a host of small but specialist service providers, for example, laminators, binders, etc., therefore who raises the EWB is a pertinent question when the goods are moved to such vendors for the job work. According to CA Shah, the answer is simple: the GST-registered person has to make the EWB.
If A, the registered worker sends the job work to a registered job worker B or a non-registered job worker C, A will raise the EWB as it is causing the outward movement of goods. However, when the goods return with finished job work, B can initiate the process of EWB or in case of C, A will have to initiate EWB process as inward goods movement since C is not a registered person.
Goods exceeding Rs 50,000 value moved by a motorised mode of transport (by road, rail, air or waterways) by a registered person then the registered person has
to generate the EWB before the movement of goods compulsorily. If such movement of goods is between a registered and a non-registered person, the registered person (no matter if it is outward or inward) has to generate the EWB. The movement of such goods between two unregistered persons, the EWB is optional, and either of the two can create the EWB for enhanced compliance. An unregistered person can generate an EWB by choosing the option of ‘citizen’ from the EWB portal.
Explaining the two conditions, CA Shah took the team through the form EWB-01 part A and part B available on the EWB portal explaining the form provisions that differentiate between inward and outward supply and the supply to or from an unregistered person. He also described in detail the form filling procedure to generate the EWB considering different real-life scenario, for example, what if the goods are supplied in a hired or self-owned vehicle by the registered person (in the form, instead of the transporter’s ID one can fill the details of the vehicle such as license plate number, etc.) or if the recipient causes the movement of goods then the recipient shall submit all the details in part A and B of the form EWB-01.
CA Shah cautioned the audience that while filling the form EWB-01 and its two parts, A and B, one must supply all the details with the utmost care and not miss any details. For example, if part A is filled but the part B is not filled, or the transporter ID is not mentioned in form B the goods will not be transported as the transporter may refuse to carry the goods.
Job work cost or the goods being transported?
The EWB is mandatory for the movement of goods of value more than Rs 50,000/-. How does one consider the value when the goods are being transferred for the job work. For example, the job work cost may be Rs 25,000/- however the goods transported may be equal to the value of Rs 1,00,000, including the taxes. At such times, according to CA Shah, the law clearly states that the EWB must consider the ‘value of goods being transported’ therefore, not the job work cost but the cost of the goods being transported, i.e., Rs 1,00,000/- to be considered and filed while preparing the EWB.
What does one do with EBN?
E-way bill number (EBN) is assigned to each successful EWB submission, and it helps to track the movement and the details of the movement of goods. The supplier or the recipient, besides the transporter, can view the details of the consignment by tracking the EBN on the EWB portal.
The EBN also helps in accepting or rejecting the consignments. For example, if upon verification of the consignment you find that the consignment is wrongly being attributed to you (for example by incorrectly filing your GSTIN), you must reject the EWB within 72 hours of the generation of the EWB. If not rejected, it will be deemed accepted. The details of the EWB form are made available to recipient ONLY if it is registered for the GST.
As an organisation, we try to bring to you sessions about the matters that concern us all, EWB for example. At times you may feel our responses are delayed; however, let me assure you that we take time and great care to bring you the most accurate information through our communications and interaction with you. Soon you will hear from your organisation about the plastic ban that has recently come into effect in Maharashtra. – Mehul A. Desai, President, BMPA
When is EWB not required?
Under certain circumstances, EWB is not required. These conditions include:
- The mode of transport is a non-motor vehicle, for example when the goods are transported by a person on foot, on a bicycle or a bullock- or a horse-cart.
- Goods transported from Customs port, airport, air cargo complex or land Customs station to inland container depot (ICD), or container freight station (CFS) for clearance by Customs.
- Goods transported under Customs supervision or with Customs seal.
- Goods transported under Customs Bond from ICD to Customs port or from one Customs station to another.
- Transit cargo transported to or from Nepal or Bhutan.
- Movement of goods caused by defence formation under the Ministry of Defence as a consignor or a consignee.
- Empty cargo containers are being transported.
- Personal, used items and diamonds; however, one must have a delivery challan.
I move goods from my place to my transporter’s place. From there, the transporter delivers it to the client location. How do I generate the EWB?
There could be two scenarios here. If you are transporting the goods within the radius of 50 km to your transporters’ place the EWB is not required. However, if your client has asked you to ‘deliver’ the goods to their transporter to be further transported to the client locations, then you can generate an EWB with the delivery details of the transporter as the delivery location for you. For all other conditions, even if you are transporting goods with the value over Rs 50,000/- by a motorised transport to a neighbouring building, the EWB has to be generated.
What are the documents needed to be carried with the goods being transported?
- The invoice copy or the bill of supply
- The delivery challan
- EWB copy or the EBN on the mobile number
What are the penalties?
For the exempted products, there would not attract any penalty if the delivery challan documents are in order.
If the EWB is not generated for the transport of goods where it must be generated, the penalties would be levied:
A)Where the owner voluntarily comes forward
- Payment of an amount 2% of the value of the goods or Rs 25,000/- whichever is less, in case of exempted goods.
- Payment of tax and the penalty at 100% of the tax amount for the goods other than the exempted goods.
B) Where the owner does not come forward
- Payment of an amount 5% of the value of goods or Rs 25,000/- whichever is less in case of exempted goods
- Payment of tax and penalty at the rate of 50% of the value of goods minus the tax paid, in other cases
C) Security equivalent to the amount as stated in (A) or (B).
Where do I generate the EWB?
Barring a few exceptions such as Karnataka, for all goods transported goods across India, EWB may be generated from http://www.ewaybill.nic.in. CA Shah explained in detail the many features and provisions on the EWB portal and the EWB forms.
The future of print lies in the rediscovery and wise investments
- Appadurai, Country Manager, HP Indigo Graphics Solutions Business in India and Sri Lanka shared some interesting insights into the innovative possibilities presented by ever-evolving digital print technologies and Mayur Suchak, Managing Director of Renaissance presented the in-detail information about the Renaissance BMPA Print Park.
Mr Appadurai, in his usual yet very interesting style, presented instances from a lot of diverse industries – from fast-moving consumer goods to beer and automobile – to bring home the message: rediscover if you do not want your business to be in trouble. “World over beer and car and many such industries are witnessing disruptions because there are companies in the industry that are rediscovering themselves, rediscovering the products or the processes,” Mr Appadurai shared, “In the US market, the mass-market beer manufacturers have recently witnessed dip of 30%, while over 6,000 craft-beer makers have witnessed the growth of 3,000% in the past decade.” He also shared the example of the recent surge in Tesla’s market cap towering over the top 2 US car makers –
GM and FORD. “Consumers are shifting from scale of economies to the scale of authenticity. In such a time only the people and companies that rediscover themselves will survive and flourish alongside the mass-market homogenised manufacturers,” added Mr Appadurai.
The future of print in Mumbai Metropolitan Region lies in Renaissance BMPA Print Park, a dedicated print, packaging and paper industry cluster in the 422-acre Renaissance Industrial Smart City. The Smart city is a large, smart industrial integrated project located on the crossroads of India’s two largest and modern road channels – Delhi-Mumbai Industrial Freight Corridor and Nagpur-Mumbai Industrial Corridor. “The Renaissance BMPA Print Park is designed and implemented with printers and packaging professionals from BMPA, making it perfect for the specific needs of the print industry. The park offers multiple options for print and allied businesses – from a small galla to a 1+1 storey buildings at a very attractive financial proposal,” said Mr Suchak while interacting with the audience at the Impact Session organised by BMPA.
If you missed this BMPA Impact Session, visit https:// www.youtube.com/bmpactp to watch the videos of these sessions and other BMPA events.