Understanding E-Way Bills in Andhra Pradesh Under GST
This article clarifies the e-way bill system's implementation in Andhra Pradesh under GST, detailing its purpose for streamlined goods movement and revenue control. It outlines the historical context of transit passes, rules for both interstate and intrastate goods transfers, and the various methods for generating, rejecting, and canceling e-way bills. The piece also covers the validity periods for these bills and addresses common challenges faced by local dealers, such as high tax rates on specific goods and difficulties with GST refunds for exporters.
Understanding E-Way Bills in Andhra Pradesh Under GST
Purpose and Recent Updates on E-Way Bills
The electronic way bill (e-way bill) system under the Goods and Services Tax (GST) framework was introduced to facilitate the quicker and more efficient movement of goods. This portal-driven payment mechanism aims to eliminate delays at state borders and enhance governmental control over potential revenue losses.
Latest System Updates:
- August 29, 2021: Taxpayers were temporarily exempted from e-way bill blocking for non-filing of GSTR-1 or GSTR-3B (for two months or more for monthly filers, or one quarter or more for QRMP taxpayers) for the period between March and May 2021.
- August 4, 2021: The blocking of e-way bills due to non-filing of GSTR-3B recommenced.
- June 1, 2021: It was clarified that a suspended GSTIN cannot generate e-way bills, although it can still be listed as a recipient or transporter on a generated e-way bill. Additionally, the 'Ship' mode of transport was updated to 'Ship/Road cum Ship', enabling users to include vehicle numbers for initial road movement and bill of lading details for subsequent ship transport. This change supports Over Dimensional Cargo (ODC) benefits for ship movements and allows for flexible vehicle detail updates.
- May 18, 2021: The Central Board of Indirect Taxes and Customs (CBIC) announced that the blocking of GSTINs for e-way bill generation would only apply to the defaulting supplier's GSTIN, not to that of the defaulting recipient or transporter.
Historical Context of Waybills in Andhra Pradesh
Andhra Pradesh has developed robust social, physical, and industrial infrastructure, attracting significant foreign direct investment. The state's advantageous port and airport infrastructure supports export and manufacturing activities, complemented by 20 operational Special Economic Zones (SEZs).
During the pre-GST VAT era, Andhra Pradesh implemented a transit pass system to monitor goods movement and prevent revenue leakage. For any taxable goods moving into, out of, or within the state, a permit in Form 600 or 602 was required. These permits were generated via the commercial tax department’s website and had to accompany the vehicle. Specific goods were identified in 2005 as requiring advance waybills. With the advent of the e-way bill system, these older requirements have been discontinued. Form X or 600 was used electronically in triplicate for inward goods, while Form 602, also in triplicate, was used for outbound goods.
Interstate Movement: E-Way Bill Requirements
Effective April 1, 2018, the Central Government mandated that all cross-border, or interstate, movement of goods must comply with the National E-way Bill system. Consequently, businesses in Andhra Pradesh are required to generate an e-way bill on the NIC Portal for any goods transported outside the state.
Intrastate Movement: E-Way Bill Requirements within Andhra Pradesh
Following the implementation of GST in July 2017, the state government initially suspended the requirement for intrastate waybills. However, an order issued on April 11, 2018, reinstated this requirement. As of April 15, 2018, an e-way bill is compulsory for goods valued over Rs. 50,000 transported within Andhra Pradesh, aligning with the mandates adopted by other states.
Generating E-Way Bills: Available Methods
E-way bills can be generated using two main methods:
- Through the official online portal.
- Via SMS (Short Message Service).
To generate e-way bills through the online portal, dealers must visit the NIC Portal and register using their GSTIN. The portal is designed to be user-friendly, requiring details such as the consignee's name and address, item descriptions, goods value, and quantity. For instructions on generating e-way bills via SMS, a detailed guide is available here.
Validity Period for E-Way Bills
An e-way bill's validity is determined by the distance the goods will travel and the type of conveyance used, calculated from the date and time of its generation.
| Type of Conveyance | Distance | Validity of EWB |
|---|---|---|
| Other than Over Dimensional Cargo | Less Than 100 Kms | 1 Day |
| For every additional 100 Kms or part thereof | 1 Additional Day | |
| For Over Dimensional Cargo | Less Than 20 Kms | 1 Day |
| For every additional 20 Kms or part thereof | 1 Additional Day |
The validity of an e-way bill can also be extended. The generator of the e-way bill has a window of four hours before its expiry or four hours after its expiry to extend its validity.
How to Reject an E-Way Bill
Dealers have the option to reject an e-way bill generated by another party (either the recipient or the supplier) that uses their GSTIN. For instance, if a consignment is cancelled and does not reach its destination, the recipient may reject the e-way bill. To reject an e-way bill, the dealer needs the generation date and the specific e-way bill number.
Steps to reject an E-way Bill:
- Log in to the e-way bill portal and click on 'Reject'.
- Select the date on which the e-way bill was generated and click 'Submit'.
- A list of all e-way bills generated on that date will appear.
- Select the e-way bills you wish to reject by ticking the corresponding boxes.
- A confirmation message will appear upon successful rejection.
Note: If acceptance or rejection is not communicated within 72 hours, the e-way bill is automatically considered accepted.
How to Cancel an E-Way Bill
If goods are not transported or do not move as specified in the e-way bill, the generator can cancel it by following these steps:
Step-1: Navigate to 'Eway bill' or 'Consolidated EWB' and choose 'Cancel' from the dropdown menu.
Step-2: Enter the 12-digit e-way bill number you intend to cancel and click 'Go'. The selected e-way bill will display. Provide an appropriate reason for cancellation, such as goods not being moved or incorrect details entered.
Important considerations for e-way bill cancellation:
- Only the generator of the e-way bill can cancel it.
- Cancellation must occur within 24 hours of the e-way bill's generation.
- Once cancelled, using the e-way bill becomes illegal.
- An e-way bill cannot be cancelled if it has already been verified by an empowered officer.
Key Challenges for Dealers in Andhra Pradesh
Retail traders in Andhra Pradesh frequently encounter issues, particularly regarding the GST rates applied to textiles (5%) and ready-made garments (12%), which they consider high. This has led to a significant decline in business, especially since yarn and cotton textiles were previously untaxed, and VAT on ready-made garments ranged from 5% to 7.5%. These changes have resulted in substantial losses for smaller dealers and traders.
Additionally, many exporters face challenges with delays in obtaining GST refunds on exports. The lack of a smooth refund process can block working capital, creating financial hardships that hinder their ability to conduct business efficiently.