Understanding E-Way Bill Rules for Water Transport of Goods
This article outlines the essential E-Way Bill requirements for goods transported via waterways in India. It covers recent updates to E-Way Bill regulations, including changes to blocking rules for non-filers and modifications to transport modes on the portal. Key provisions specific to water-based movement are detailed, such as the role of the Bill of Lading, conditions for E-Way Bill generation, and rules regarding validity and trans-shipment.
📖 3 min read read🏷️ E-Way Bill
An Electronic Way (E-Way) Bill must be generated via the dedicated portal for goods transported through various modes, including road, rail, ship, and air. This document ensures compliance with Goods and Services Tax (GST) regulations during inter-state and intra-state movement of goods.
Recent E-Way Bill Updates
Several important updates concerning E-Way Bills have been issued by the Central Board of Indirect Taxes and Customs (CBIC) and the E-Way Bill portal:
- August 29, 2021: Taxpayers were temporarily exempt from E-Way Bill blocking for non-filing of GSTR-1 or GSTR-3B between May 1, 2021, and August 18, 2021. This exemption applied specifically for the March 2021 to May 2021 period, benefiting monthly and Quarterly Return Monthly Payment (QRMP) scheme taxpayers.
- August 4, 2021: The blocking mechanism for E-Way Bills, which is triggered by non-compliance with GSTR-3B filing, resumed starting August 15, 2021.
- June 1, 2021: The E-Way Bill portal clarified that a suspended GSTIN (Goods and Services Tax Identification Number) cannot generate new E-Way Bills. However, such a suspended GSTIN can still be designated as a recipient or a transporter on an E-Way Bill generated by another party. Additionally, the 'Ship' transport mode was expanded to 'Ship/Road cum Ship', enabling users to enter a vehicle number for the initial road leg of a journey and a bill of lading for subsequent ship transport. This enhancement aims to support Over Dimensional Cargo (ODC) benefits and provides flexibility for updating vehicle details as needed during multi-modal transit.
- May 18, 2021: Through Notification 15/2021-Central Tax, the CBIC specified that E-Way Bill generation blocking is solely applied to the GSTIN of the defaulting supplier, and does not extend to the recipient's or the transporter's GSTIN.
Key Provisions for Waterways Goods Movement
When transporting goods via waterways, several crucial points regarding E-Way Bills must be noted to ensure regulatory compliance:
- A Bill of Lading serves as a fundamental legal document. It is issued by the carrier to the shipper, confirming the contract of carriage and providing official acknowledgment that the goods have been loaded onto the transporting vessel.
- For goods moved by vessel, the E-Way Bill must be generated by either the supplier or the recipient. Part B of the E-Way Bill is then required to be updated with the serial number and date of the Bill of Lading.
- A unique aspect of waterways transport is that the E-Way Bill can be generated even after the commencement of the goods movement.
- An E-Way Bill is specifically not required when goods are transported from a port or a land customs station to an inland container depot (ICD) or a container freight station (CFS) for the purpose of customs clearance.
- The validity period of the E-Way Bill for ship transportation commences upon the initial entry of the first transport document number. It is important to note that this validity is not recalculated or re-extended for any subsequent entries made in Part-B of the E-Way Bill.
- In situations involving trans-shipment, where the vessel or vehicle is changed during transit, the transporter has the option to extend the existing E-Way Bill's validity period. This extension requires updating the new vehicle details and providing copies of the relevant delivery challans.
Frequently Asked Questions
What is the primary purpose of the Goods and Services Tax (GST) in India?
The primary purpose of GST in India is to simplify the indirect tax structure by consolidating multiple taxes into a single, comprehensive tax, thereby reducing complexity and promoting a unified national market.
Who is required to register under GST?
Businesses exceeding a specified annual turnover threshold (which varies by state and type of goods/services) are generally required to register under GST. Certain businesses, like those engaged in inter-state supply, must register irrespective of turnover.
What are the different types of GST in India?
The different types of GST in India include Central GST (CGST) and State GST (SGST) for intra-state transactions, Integrated GST (IGST) for inter-state and import transactions, and Union Territory GST (UTGST) for transactions within Union Territories.
How is Input Tax Credit (ITC) utilized under GST?
Input Tax Credit (ITC) allows businesses to reduce their tax liability by claiming credit for the GST paid on purchases of goods and services used for business purposes. ITC can be set off against the output tax payable on sales.
What is the importance of timely GST return filing?
Timely GST return filing is crucial for compliance, avoiding penalties, enabling recipients to claim ITC, and maintaining a good compliance rating, which is vital for business operations and creditworthiness.