Commenting on the development, Rakesh Nangia, Managing
Partner, Nangia & Co LLP, said the matching of details
mentioned in GSTR-1 with the e-way bills will help in
curbing tax evading practices as the invoice matching
mechanism will be a significant tool in ascertaining the
transaction details while matching it with the details
furnished by the taxpayer.
"However,
the said mechanism will be partly effective/beneficial
since only supply of goods can be traced by the matching
concept. Further, e-way bill is required on movement of
goods where consignment value exceeds Rs.50,000," he
explained while adding that in cases where value of
goods does not exceed Rs.50,000, matching would not be
possible.
Action for mismatch
Option has been given on the e-way bill portal to take
reports for particular tax period from e-way bill portal
and match with tax invoices for outward supply and
inward supply/delivery challan. Information about e-way
bills, along with the transactions captured in GSTR1,
will make it easy to spot mismatches in certain cases
where invoice has not been reported in GST return by the
taxpayer or where taxpayer fails to file his returns or
furnishes wrong details.
"In such cases, notice may be served by the authorities
demanding clarifications for difference in tax amounts
along with penalties. The said measures were adopted by
the VAT authorities in the erstwhile regime also.
Further in extreme cases, confiscation of goods, along
with penalties may be imposed by the authorities,"
Nangia said.
e-way bill was introduced from April 1. It is applicable
for both inter-State and intra-States movement of goods,
though the latter is being introduced on phases. So far,
18 States have adopted e-way system. Maharashtra and 7
Union Territories will start the new system for the
intra state/UT movement of goods from May 25 while the
others will do so by June 3.
e-way bill capacity
GSTN claims that there is capacity to generate e-way
bill up to 70 lakh every day. At present, on an average
11-13 lakh e-way bills are being generated everyday.
Nearly three-fourth of the e-way bills are related to
inter-State trade while the remaining are for
intra-State. However, once all the States start using
e-way bill for internal movement, the ratio is expected
to change to 50:50.
Source::: Business Line,
dated 10/05/2018.