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ICAI FAQ on accounting treatment of increased gratuity liability due to increase in ceiling

ICAI FAQ on accounting treatment of increase in liability due to enhancement of the gratuity ceiling

The Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI) has issued the following FAQ on accounting treatment of increase in liability on account of enhancement of the gratuity ceiling from Rs. 10 lakhs to Rs. 20 Lakhs due to Payment of Gratuity (Amendment) Act 2018 (vide notification no. S.O. 1420 (E) dated March 29, 2018).

The stated purpose of the FAQ is to clarify the accounting treatment of increase in liability due to enhancement of the gratuity ceiling.

Question: ABC Ltd. is covered by the Payment of Gratuity Act, 1972 which is required to pay gratuity to its employees. Due to the recent amendment in the aforesaid Act there is substantial increase in the liability of the company. Whether there is any exemption or relief available to the company under Accounting Standards with regard to the accounting treatment of such increase in the liability.

Response: The Gratuity benefit is an employee benefit and accordingly any increase in company’s liability due to enhancement of the gratuity ceiling from Rs. 10 Lakhs to Rs. 20 Lakhs would be accounted for as per the principles of AS 15, Employee Benefits or Ind AS 19, Employee Benefits, as the case may be.

In this regard, it may be noted that effect of above type of amendments need to be dealt with reference to accounting treatment of past service costs.The ‘past service cost’ is defined as below in AS 15 and Ind AS 19:

As per AS 15, “Past service cost is the change in the present value of the defined benefit obligation for employee service in prior periods, resulting in the current period from the introduction of, or changes to, post-employment benefits or other long-term employee benefits. Past service cost may be either positive (where benefits are introduced or improved) or negative (where existing benefits are reduced)”.

As per Ind AS 19 “past service cost, which is the change in the present value of the defined benefit obligation for employee service in prior periods, resulting from a plan amendment (the introduction or withdrawal of, or changes to, a defined benefit plan) or a curtailment (a significant reduction by the entity in the number of employees covered by a plan)”.

As per the above, the increase in liability arising due to enhancement of gratuity ceiling from 10 to 20 Lakhs is a past service cost.

It may also be noted that the aforementioned accounting standards do not provide any exemption/one time relief with regard to the accounting treatment of increase in liability arising on account of past service cost. Accordingly, ABC Ltd. is required to account for any increase in the liability on account of increase in gratuity ceiling as expense as per the requirements of the relevant applicable Standard.

Refund of ITC accumulated due to Inverted Tax Structure (RFD-01A) – Frequently Asked Questions

Refund of ITC accumulated due to Inverted Tax Structure (RFD-01A)-FAQ

1. What is Inverted Tax Structure in the GST regime?

The term ‘Inverted Tax Structure’ refers to a situation where the rate of tax on input received (i.e. Input tax credit received) is more than the rate of tax (i.e. the tax paid) on output supplies. As a result, the higher tax paid on input supplies gets accumulated in the Electronic Credit Ledger of the receiver Taxpayer. The Taxpayer can claim the refund of ITC accumulated on account of Inverted Tax structure by filing the refund application form RFD-01A. (Refer Section 54(3) (ii) of the CGST Act 2017)

2. What is needed to file for refund of accumulated ITC of IGST / CGST / SGST, export of goods?

You can file for refund of IGST / CGST / SGST on account of ITC accumulated due to Inverted Tax Structure, if you have filed GSTR1 and GSTR-3B of the relevant tax period, for which refund is to be claimed.

However, in case registered persons having aggregate turnover of up to Rs1.5 crores in the preceding financial year or the current financial year are opting to file FORM GSTR-1 quarterly (notification No. 57/2017-Central Tax dated 15.11.2017 refers), such persons shall apply for refund on a quarterly basis. Please note that such refund on account of inverted tax structure is not available in case of exempted or nil rated supplies.

 Inverted Tax Structure-FAQ

3. How can I file for refund on account of ITC accumulated due to Inverted Tax structure, and how will the disbursement be made?

  1. Ensure that you have filed GSTR 1 and GSTR-3B of the relevant tax period for which you want to file for refund of the accumulated ITC on the basis of balance available in the Electronic Credit Ledger.
  2. Once the eligibility to file for refund is established, fill-out the form RFD-01A and file it in GST Portal.
  3. Upon filing the form RFD-01A, GST Portal will generate an ARN.
  4. After ARN generation, Taxpayer needs to take prints of the filed application and the Refund ARN Receipt generated on the portal, and submit the same along with supporting documents to the jurisdictional authority.
  5. After Refund Application is processed by tax official, refund will be disbursed manually.
  6. In case of the taxpayer where the jurisdictional authority of state/ center yet not allotted then the taxpayer has to contact to the Nodal officer of the corresponding state/ center.

4. Is it mandatory to file GSTR-1, GSTR-2 and GSTR-3 in order to file for refund?

If the Taxpayer has filed GSTR1 and GSTR-3B, then he / she need not file GSTR-2 and GSTR-3 for filing refund form RFD-01A. Presently GSTR-2 and GSTR- 3 are deferred, hence for the reason taxpayer has to give manual undertaking to the jurisdictional authority (Refer circular no 24/24/2017-GST dated 21/12/2017 for details)

5. Is there any time limit to file for refund of ITC accumulated due to Inverted Tax Structure?

Yes, as per Explanation 2 (e) of subsection 14 of Section-54, the refund application in form RFD-01A needs to be filed within 2 years from the end of financial year in which such claim for refund arises

6. In which bank account will the refund amount be credited? Is it one of the accounts that I registered in GST Portal?

Yes, the refund amount will be credited to one of the bank accounts that you registered in the GST Portal and linked it with your GST profile. At the time of filling-out form RFD-01A, you will be required to select a bank account from the list of your linked / registered accounts in the GST Portal. In case the applicant requires receipt of refund in a different bank account, he may add that bank account in GST registration details by way of non-core amendment.

7. What is Net ITC?

Net ITC is the input tax credit availed on inputs and input services during the relevant period.

8. What is Turnover of inverted rated supply of goods?

The value of inverted supply of goods made during the relevant period without payment of tax under bond or letter of undertaking

9. What is Tax payable on such inverted rated supply of goods?

The tax amount payable on such inverted rated supply of goods under the same head i.e. IGST, CGST, SGST.

10. What is Adjusted Total Turnover?

Adjusted total turnover is the turnover in a State or a Union territory, as defined under clause (112) of section 2 of CGST Act, excluding the value of exempt supplies other than inverted-rated supplies, during the relevant period

11. What is the ‘SAVE’ feature in refund application?

The refund application must be saved before filing.

  • The system will flash a confirmation message when saving the application for the first time.
  • The system displays a confirmation message upon saving the application.
  • Application can be saved at any stage and can be retrieved using the My Saved / Submitted Applications option under Refunds.
  • Saved applications are stored in the system for 15 days, after which they get automatically deleted.
  • Saving the application activates the Declaration checkbox.

12. Where can I track my filed refund application?

  • Filed applications (ARNs) can be downloaded as PDF documents using the My Saved / Submitted Applications option under Refunds.
  • Filed applications can be tracked using the Track Application Status option under Refunds.

13. I am not able to make any changes in the refund application? What could be the issue?

After clicking on Proceed button no changes can be made in the refund application.

14. When is debit entry of refund amount claimed is made in ledger, while filing refund due to inverted duty structure?

A debit entry shall be made in the Electronic Credit Ledger for the amount claimed as Refund after ARN is generated on submission of the refund application.

E-way Bill System-61 Frequently asked questions issued by National E-way Bill Portal

E-way Bill Frequently asked questions

1. What is an e-Way Bill?

e-way bill is a document required to be carried by a person in charge of the conveyance carrying any consignment of goods of value exceeding fifty thousand rupees as mandated by the Government in terms of section 68 of the Goods and Services Tax Act read with rule 138 of the rules framed thereunder. It is generated from the GST Common Portal by the registered persons or transporters who causes movement of goods of consignment before commencement of such movement

2. What is the common portal for generation of e-way bill?

The common portal for generation of e-way bill is http://gst.kar.nic.in/ewaybill
The link takes you to the IP of the National Portal for generation of e-way bill

3. Why is the e-Way Bill required?

Section 68 of the Goods and Services Tax Act mandates that the Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to carry with him such documents and such devices as may be prescribed. Rule 138 of Karnataka Goods and Services Tax Rules 2017 prescribes e-way bill as the document to be carried for the consignment of goods of value more than rupees fifty thousand . Government has issued a notification under rule 138 of Goods and Services Tax Rules, 2017 mandating to carry e-way bill for transportation of goods of consignment of value more than rupees fifty thousand.  Hence e-way bill generated from the common portal is required to be carried.

4. Who all can generate the e-Way Bill?

Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees in relation to supply; or reasons other than supply; or inward supply from unregistered person shall generate e-way bill. It means, the consignor or consignee, as a registered person or a transporter of the goods can generate the e-way bill. The unregistered transporter can enroll on the common portal and generate the e-way bill for movement of goods for his clients. Any person can also enroll and generate the e-way bill for movement of goods for his/her own use.

5. Who all can update the vehicle number for the e-Way Bill?

The e-way bill is not valid without the vehicle number updated on the common portal, if on the mode of transport is the road. The Vehicle number can be updated by the generator of the e-way bill or the transporter assigned for that e-way bill by the generator.

6. What is a pre-requisite to generate the e-Way Bill?

To generate the e-way bill, it is essential that the person shall be registered person and if the transporter is not registered person it is mandatory to get enrolled on the common portal of e-waybill (http://gst.kar.nic.in/ewaybill) before generation of the e-way bill. The documents such as tax invoice or bill of sale or delivery challan and Transporter’s Id, who is transporting the goods with transporter document number or the vehicle number in which the goods are transported.

7. If there is a mistake or wrong entry in the e-Way Bill, what has to be done?

If there is mistake, incorrect or wrong entry in the e-way bill, then it cannot be edited or corrected.

E-way Bill System-Frequently asked questions

8. Whether the e-way bill can be cancelled? if yes, under what circumstances ?

Yes. e-way bill can be cancelled if either goods are not transported or are not transported as per the details furnished in the e-way bill. e-way bill can be cancelled within 24 hours from the time of generation.

9. If the vehicle in which goods are being transported having e-way bill is changed, then what has to be done?

The e-way bill for transportation of goods always should have the vehicle number that is actually carrying the goods. There may be requirement to change the vehicle number after generating the e-way bill or after commencement of movement of goods due to transshipment or due to breakdown of vehicle. In such cases, the transporter or generator of the e-way bill can update the changed vehicle number.

10. Why the transporter needs to enroll on the e-Way Bill system?

There may be some transporters, who are not registered under the Goods and Services Tax Act and if such transporters cause the movement of goods for their clients, they are required to generate the e-way bill on behalf of their clientsf or update the vehicle number for e-way bill. Hence, they need to enroll on the e-way bill portal and generate the 15 digits Unique Transporter Id.

11. Can I transport the goods with the e-way bill without vehicle details in it?

No. One needs to transport the goods with a e-way bill specifying the vehicle number, which is a carrying the goods. However, where the goods are transported for a distance of less than ten kilometers within the State from the place of business of consignor to the place of transporter for further transportation, then the vehicle number is a not mandatory.

12. Whether e-Way Bill is required for all the goods that are being transported?

The e-way bill is required to transport all the taxable goods with the value exceeding fifty thousand rupees except 154 goods specified in Annexure to the notification.

13. What is consolidated e-Way Bill?

Consolidated e-way bill is a document containing the multiple e-way bills for multiple consignments being carried in one conveyance (goods vehicle). That is, the transporter carrying the multiple consignments of various consignors and consignees in one vehicle is required to carry one consolidated e-way bill instead of carrying multiple e-way bills for those consignments.

14. Who can generate the consolidated e-Way Bill?

A transporter can generate the consolidated e-way bills for movement of multiple consignments in one vehicle.

15. Can the e-way bill be deleted or cancelled?

The e-way bill once generated cannot be deleted. However, it can be cancelled by the generator within 24 hours of generation. If it has been verified by any empowered officer, then it cannot be cancelled. e-way bill can be cancelled if either goods are not transported or are not transported as per the details furnished in the e-way bill.

16. Who can reject the e-Way Bill and Why?

The person who causes transport of goods shall generate the e-way bill specifying the details of other person as a recipient of goods. There is a provision in the common portal for the other party to see the e-way bill generated against his/her GSTIN. As the other party, one can communicate the acceptance or rejection of such  consignment specified in the e-way bill. If the acceptance or rejection is not communicated within 72 hours from the time of generation of e-way Bill, it is deemed that he has accepted the details.

17. If the goods having e-way bill has to pass through transshipment and through different ehicles, how it has to be handled?

Some of the consignments are transported by the transporter through transshipment before it is delivered to the recipient at the place of destination. Hence for each movement from one place to another, the transporter needs to update the vehicle number in which he is transporting that consignment.

18. Is there any validity period for e-way bill?

Yes. Validity of the e-way bill or consolidated e-way bill depends upon the distance the goods have to be transported. The validity is one day upto 100 km and for every 100 km or part thereafter it is one additional day.

19. Which types of transactions that need the e-way bill?

For transportation of goods in relation to all types of transactions such as outward supply whether within the State or interstate, inward supply whether from within the State or from interstate including from an unregistered persons or for reasons other than supply also e-way bill is mandatory.

20. Who is required to generate the e-way bill?

Every registered person, who causes movement of goods, needs to generate the e-way bill. If the registered person is unable to generate the e-way bill, the transporter who transports the goods can generate the e-way bill on behalf of his/her client. If the movement is caused by an unregistered person, he may at his option generate the e-way bill.

21. Can I use the different modes of transportation to carry the goods having the e-Way Bill? If so, how to update the details?

Yes. One can transport the goods through different modes of transportation &; Road, Rail, Air, Ship. However, always e-way bill needs to be updated with the latest mode of transportation or conveyance number accordingly. That is, at any point of time, the details of conveyance abcaus.in specified in the e-way bill on the portal should match with the details of conveyance through which goods are actually being transported.

22. What are the documents that need to be carried along with the goods being transported?

The person in charge of a conveyance shall carry the tax invoice or bill of supply or delivery challan, as the case may be; and a copy of the e-way bill or the e-way bill number generated from the common portal.

23. How to generate the e-Way Bill from different registered business places?

The registered person can generate the e-way bill from his account from any registered business place. However, he/she needs to enter the address accordingly in the e-way bill. He/she can also create multiple sub-users and assigned to these places and generate the e-way bills accordingly.

24. How can the taxpayer under GST register for the e-way bill system?

All the registered persons under GST shall also register on the portal of e-way bill namely: http://gst.kar.nic.in/ewaybill using his GSTIN. Once GSTIN is entered, the system sends the OTP to his registered mobile number and after authenticating the same, the system enables him to generate his/her username and password for the e-way bill system. After generation of username and password of his choice, he/she may proceed to make entries to generate e-way bill.

25. What are the modes of e-way bill generation, the taxpayer can use?

The e-way bill can be generated by the registered person in any of the following methods:

  • Using Web based system Using bulk upload facility
  • Using SMS based facility
  • Using Android App
  • Using Site-to-Site integration
  • Using GSP ( Goods and Services Tax Suvidha Provider)

26. How can the tax payer use the SMS facility to generate the e-Way Bill?

The taxpayer has to register the mobile numbers through which he wants to generate the e-way bill on the e-way bill system.

27. How can the taxpayer use the Android App to generate the e-Way Bill?

The tax payer has to register the EMEI numbers of the mobiles through which he wants to generate the e-way bill on the e-way bill system.

28. How can the taxpayer integrate his/her system with e-Way Bill system to generate the e-Way Bills from his/her system?

The taxpayer should register the server details of his/her systems through which he wants to generate the e-way bill using the APIs of the e-way bill system.

29. How does the taxpayer generate e-way bill with Part-A and move the goods himself later?

The taxpayer can generate EWB with or without Part-B.  Sometimes, the tax payer wants to move the goods himself but wants to update the Part-B later as vehicle number is not available at that point of time.  E-way bill expects the user to enter transporter ID or vehicle number.  So as he wants to move the goods himself, he can enter his GSTIN as transporter Id and generate EWB.  This indicates to the system that he is a transporter for that EWB.

30. What has to be entered in GSTIN column, if consignor or consignee is not having GSTIN?

If the consigner or consignee is unregistered tax payer and not having GSTIN, then user has to enter ‘URP’ [Unregistered Person] in corresponding GSTIN column.

31. What has to be done to the e-way bill, if the vehicle breaks down?

If the vehicle breaks down when the goods are being carried with EWB, then the transporter can cause to repair the vehicle and continue the journey.  If he is going to change the vehicle, then he has to enter the new vehicle details for that EWB on the web-site using ‘Update vehicle number’ option and continue the journey with new vehicle.

32. Whether Part-B is must for e-way bill?

E-Way bill is complete only when Part-B is entered.  Part-B is a must for the e-way bill for movement purpose.  Otherwise printout of EWB says it is invalid for movement of goods.

33. Can Part-B of e-way bill be entered by any transporter?

Part-B can be entered only by the generator of the EWB and transporter assigned in it.  That is, the generator of EWB indicates who is authorized to move the goods by entering his transporter id.  Only such transporter can login and update the Part-B.

34. How many times can Part-B or Vehicle number be updated for an e-way bill?

The user can update Part-B (Vehicle details) as many times as he wants for movement of goods to the destination. However, the updating should be done within the validity period.

35. Can Part-B entry be assigned to another transporter by authorized transporter?

Part-B can be entered by the transporter assigned in the EWB or generator himself.  But the assigned transporter cannot re-assign to some other transporter to update Part-B on the EWB system.

36. When does the validity of the e-way bill start?

The validity of the e-way bill starts when first entry is made in Part-B.  That is, vehicle entry is made first time in case of road transportation abcaus.in or first transport document number entry in case of rail/air/ship transportation, whichever is the first entry.  It may be noted that validity is not re-calculated for subsequent entries in Part-B.

37. How is the validity of the e-way bill calculated?

The validity period of the EWB is calculated based on the ‘approx. distance’ entered while generating the EWB.  For every 100 kms one day is a validity period for EWB as per rule and for part of 100 KM  one more day  is added.  For ex. If approx. distance is 310KMs then validity period is 3+1 days.

38. Whether e-way bill is required, if the goods are being purchased and moved by the consumer to his destination himself?

Yes. As per the rules, e-way bill is required along with the goods, if it is more than Rs 50,000.00. Under this circumstance, the consumer can get the e-way bill generated from the tax payer or supplier, based on the bill or invoice issued by him. Or the consumer can enroll and log in as the citizen and generate the e-way bill.

39. Can the e-way bill be modified or edited?

The e-way bill once generated, cannot be edited or modified.  Only Part-B can be updated to it.  However, if e-way bill is generated with wrong information, it can be cancelled and generated freshly again. The cancellation is required to be done within twenty four hours from the time of generation.

40. How can anyone verify the authenticity or the correctness of e-way bill?

Any person can verify the authenticity or the correctness of e-way bill by entering EWB No, EWB Date, Generator ID and Doc No in the search option of EWB Portal.

41. How to generate e-way bill for multiple invoices belonging to same consignor and consignee?

If multiple invoices are issued by the supplier to recipient, that is, for movement of goods of more than one invoice of same consignor and consignee, multiple EWBs have to be generated.  That is, for each invoice, one EWB has to be generated, irrespective of same or different consignors or consignees are involved.  Multiple invoices cannot be clubbed to generate one EWB.  However after generating all these EWBs, one Consolidated EWB can be prepared for transportation purpose, if they are going in one vehicle.

42. When to enter transport document details for rail/air/ship mode of transportation, as it is available only after submitting goods to the concerned authority?

E-way bill has to be updated with transport document details within one hour of submission and collection of transport document from rail/air/ship authority.  Ideally, Part-B has to be updated before movement of goods from the place to submission.

43. How to enter multiple modes of transportation, i.e., road, rail, ship, air for the same e-way bill? 

One e-way bill can go through multiple modes of transportation before reaching the destination.  As per the mode of transportation, the EWB can be updated with new mode of transportation by using ‘Update Vehicle Number’. Let us assume the goods are moving from Cochin to Chandigarh through road, ship, air and road again.  First, the tax payer generates the EWB by entering first stage of movement (by road) from his place to ship yard and enters the vehicle number. Next, he will submit the goods to ship yard and update the mode of transportation as Ship and transport document number on the e-way bill system.  Next, after reaching Mumbai, the taxpayer or concerned transporter updates movement as road from ship to airport with vehicle number.  Next the tax payer or transporter updates, using ‘update vehicle number’ option, the Airway Bill number. Again after reaching Delhi, he updates movement through road with vehicle number. This way, the e-way bill will be updated with multiple mode of transportation.

44. How does transporter come to know that particular e-way bill is assigned to him?

The transporter comes to know the EWBs assigned to him by the taxpayers for transportation, in one of the following ways:
• The transporter can go to reports section and select ‘EWB assigned to me for trans’ and see the list.
• The transporter can go to ‘Update Vehicle No’ and select ‘Generator GSTIN’ option and enter taxpayer GSTIN, who has assigned or likely to assign the EWBs to him.
• The tax payer can contact and inform the transporter that the particular EWB is assigned to him.

45. How to handle the goods which moves through multiple transshipment places?

Some of the consignments move from one place to another place till they reach their destinations.  Under this circumstance, each time the consignment moves from one place to another, the transporter needs to enter the vehicle details using ‘Update Vehicle Number’ option, when he starts moving the goods from that place or the transporter can also generate ‘Consolidated EWB’ with the EWB of that consignment with other EWBs and move to the next place.  This has to be done till the consignment reaches destination.  But it should be within the validity period of EWB.

46. What has to be done by the transporter if consignee is refuses to take goods or rejects the goods for quality reason?

There is a chance that consignee or recipient may reject to take the delivery of consignment due to various reasons.  Under such  circumstance, the transporter can get one more e-way bill generated with the help of supplier or recipient by indicating supply as ‘Sales Return’ and with relevant document details and return the goods to supplier as per his agreement with him.

47. What has to be done, if the validity of the e-way bill expires?

If validity of the e-way bill expires, the goods are not supposed to be moved.  However, under circumstance of ‘exceptional nature’, it can be extended by the Commissioner of the state.  The procedure for the same will be notified later.

48. How to enter invoice having different states for “Bill to” and “Ship to” places and what will be the tax rates?

If the addresses involved in ‘Bill to’ and ‘Ship to’ in a invoice/bill belongs to one legal name/tax payer as per GSTIN within the state, then one e-way bill has to be generated. That is, if the ‘Bill to’ is principal place of business and ‘Ship to’ is additional place of business of the GSTIN or vice versa in a invoice/bill, then one e-way bill is sufficient for the movement of goods.

If the addresses involved in ‘Bill to’and ‘Ship to’ in a invoice/bill belongs to different legal names/tax payers,  then two e-way bills have to be generated. One e-way bill for first invoice, second e-way bill is from ‘Bill to’ party to ‘Ship to’ party based on the invoice/bill of the ‘Bill to’ party. This is required to complete the cycle of transactions and taxes will change for inter-state transactions.

For example, A has issued invoice to B as ‘Bill to’ with C as ‘Ship to’. Legally, both B and C are different tax payers. Now, A will generate one e-way bill and B will issue invoice and generate one more e-way bill. As goods are moving from A to C directly, the transporter will produce both the invoices and e-way bills to show the shortcut movement of goods.

49. What is the validity of consolidated e-way bill?

Consolidated EWB is like a trip sheet and it contains details of different EWBs which are moving towards one direction, and these EWBs will have different validity periods.

50. How does the transporter handle multiple e-way bills which pass through transshipment from one place to another in different vehicles to reach the destinations?

Some of the transporters move the consignments from one place to another place as per the movement of vehicles.  Sometimes the consignments move to 8-10 branches of the transporter before they reach its destination. The consignments reach the particular branch of transporter from different places in different vehicles and again these consignments will be sorted out to transport to different places in different vehicles.

51. How does the tax payer become transporter in the e-way bill system?

Generally, registered GSTIN holder will be recorded as supplier or recipient and he will be allowed to work as supplier or recipient. If registered GSTIN holder is transporter, then he will be generating EWB on behalf of supplier or recipient. He needs to enter both supplier and recipient details, which is not allowed as a supplier or recipient.

To change his position from supplier or recipient to transporter, the tax payer has to select the option ‘Register as Transporter’ under registration and update his profile. Once it is done with logout and login, the system changes tax payer as transporter and allows him to enter both supplier and recipient as per invoice.

52. What is TRANSIN or Transporter ID?

TRANSIN or Transporter id is 15 digits unique number generated by EWB system for unregistered transporter once he enrolls on the system. TRANSIN is 15 digits number on similar lines with GSTIN and it is based on state code, PAN and Check digit. This can be shared by transporter to his clients to enter this number while generating e-waybills.

53. How does the unregistered transporter get his unique id or transporter id?

The transporter is required to provide the essential information on the EWB portal. The transporter id is created by the EWB system after furnishing the information and submitting.  It is a 15 digits number on similar lines with GSTIN and it is based on state code, PAN and Check digit. This can be shared by transporter to his clients to enter this number while generating e-waybills.

54. How the transporter is identified or assigned the e-way bill by the taxpayer for transportation?

While generating e-way bill the tax payer has a provision to enter the transporter id in the transportation details section.  If he enters 15 digits transporter id provided by his transporter, the e-way bill will be assigned to that transporter.  Subsequently, the transporter can log in and update the further transportation details to it.

55. How to generate e-way bill, if the goods of one invoice is being moved in multiple vehicles simultaneously?

Where the goods are being transported in a semi knocked down or completely knocked down condition the EWB shall be generated for each of such vehicles based on the delivery challans issued for that portion of the consignment and;
(a) the supplier shall issue the complete invoice before dispatch of the first consignment;</p>
(b) the supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;
(c) each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and
(d) the original copy of the invoice shall be sent along with the last consignment

Please note that multiple EWBs have to generate under this circumstance. That is, the EWB has to be generated for each consignment based on the delivery challan details along with the corresponding vehicle number.

56. How does the tax payer or recipient come to know about the e-way bills generated on his GSTIN by other person/party?

As per rules, the tax payer or recipient can reject the e-way bill generated on his GSTIN by other parties. The following options are available for him to see the list of e-way bills.
• He can see on the dashboard, once he logs into the system.
• He will get one SMS everyday indicating the total e-way bill activities on his GSTIN.
• He can go to reject option and select date and see the e-way bills. Here, system shows the list of e-way bills generated on his GSTIN by others.
• He can go to report and see the ‘EWBs by other parties’

57. How does the tax payer update his latest business name, address, mobile number or e-mail id in the e-way bill system?

 EWB System in dependent on GST Common portal for tax payers registration details like legal name/trade name, business addresses, mobile number and e-mail id.  EWB System will not allow tax payer to update these details directly. If tax payer changes these details at GST Common portal, it will be updated in EWB system within a day. Otherwise, the tax payer can update the same by selecting the option ‘Update My GSTIN’.

58. Why are the reports not allowing for range of dates?

The user is allowed to generate report on daily basis.  Because of criticality of the system for performance and requirement of 24/7, the reports are abcaus.in limited to be generated for a day.  The user can change date and generate the report for that date.  Hence, the user is advised to generate report daily and store in his system.

59. Who can use API interface?

API interface is a site-to-site integration of website of tax payer with the EWB system. API interface can be used by large tax payers, who needs to generate more than 200 invoices / e-way bills per day. However, the tax payer should meet the following criteria to use the API interface.
• His invoicing system should be automated with IT solutions.
• He should be ready to change his IT system to integrate with EWB system as per API guidelines.
• He should be generating at least 200 invoices/e-way bills per day.
• His system should have SSL based domain name.
• His system should have Static IP Address.
• He should have pre-production system to test the API interface

60. What is API Interface?

API interface is a site-to-site integration of two systems.  Using this, the tax payer can link his IT system with EWB system to generate EWB directly from his IT solution without keying in the EWB form.  This reduces the duplicate data entry and eliminates the data entry mistakes.

61. What are the benefits of API Interface?

Presently taxpayer generates invoices from his IT system and logs into EWB system and enters e-way bill requests and generate e-way bills.

Here, the tax payer has to make double entries – one for Invoice generation in his system and second for e-way bill generation. If he integrates API interface with his system to EWB system, he can avoid this. That is, he can avoid duplicate entry of invoice details for e-way bill generation. He can save the manpower cost of operator for this purpose. Secondly API interface will eliminate data entry mistakes/errors being made by operator. It also saves time. Thirdly e-way bill number can be stored by the tax payer system in his database with the corresponding invoice.

62. Why masters have to be entered?

EWB system has an option to enter the masters of user – client master, supplier master, transporter master and product master.  If user creates these masters, it will simplify the generation of e-way bill for him.  That is, the system auto populates the details like trade/legal name, GSTIN, address on typing few character of client or supplier;  HSN Code, tax rates etc., in case of product. It also avoids data entry mistakes by operator while keying in the details.

63. Why do I need sub-users?

Most of the times, the tax payer or authorized person himself cannot operate and generate EWBs.  He will be dependent upon his staff or operator to do that.  He would not like to avoid sharing his user credentials to them. In some firms, the business activities will be operational 24/7 and some firms will have multiple branches. Under these circumstances, the main user can create sub-users and assign the roles to them.  He can assign generation of EWB or rejection or report generation activities based on requirements.

UIDAI releases AADHAAR related eleven Frequently Asked Questions as of 14th January, 2018

AADHAAR: Frequently Asked Questions as on 14th Jan 2018

Q 1: UIDAI has all my data including biometrics, bank account, PAN, etc. Will they be used to track my activities?

Answer:​ Absolutely false. UIDAI database has only the following information –

(a) Your name, address, DOB, gender, date of birth

(b) Ten finger prints, two IRIS scans, facial photograph

(c) mobile number and email ID .

Rest assured, UIDAI does not have your information about family, caste, religion, education, bank accounts, shares, mutual funds, financial and property details, health records etc and will never have these information in its database.

In fact, Section 32(3) of the Aadhaar Act 2016 specifically prohibits UIDAI from controlling, collecting, keeping or maintaining any information about the purpose of authentication either by itself or through any entity.

AADHAAR Frequently Asked Questions

Question 2: But when I link my bank accounts, shares, mutual funds and my mobile phones with Aadhaar, will UIDAI not get these information?

Answer: ​Absolutely No. When you give Aadhaar number to your banks, mutual fund companies, mobile phone companies, they only send Aadhaar number, your biometrics (given at the time authentication) and your name etc to UIDAI for verification for your identity. They do not send your bank account or its details to UIDAI.

So far as UIDAI is concerned, it responds to such verification requests by replying either ‘Yes’ or ‘No’. In few cases, if the verification answer is ‘Yes’, your basic KYC details (name, address, photo etc) available with UIDAI are sent to the service provider.

Question 3: If someone gets to know my Aadhaar number, they can use it to hack my bank account.

Answer: ​Absolutely false. Just like by merely knowing your ATM card number, no one can withdraw money from the ATM machine, by knowing your Aadhaar number alone, no one can hack into your bank account and withdraw money. Your bank account is safe if you don’t part with your PIN/OTP given by banks. Rest assured, there has not been been a single case of financial loss due to Aadhaar.

Q 4: Why am I being asked to link all my bank accounts with Aadhaar?

For your own security, it is necessary to verify identity of all bank account holders and link them with Aadhaar to weed out the accounts being operated by fraudsters, money-launderers, criminals etc. When every bank account is verified and linked with Aadhaar and then If anyone fraudulently withdraws money from your account, through Aadhaar such fraudster can easily be located and punished.

Therefore, by linking your bank accounts with Aadhaar, your accounts becomes more secure and not the other way around.

Question 5: Why am I being asked to verify and link my mobile numbers with Aadhaar?

Answer: ​For your own security and security of our country, it is necessary to verify identity of all mobile subscribers and link them with Aadhaar to weed out mobile numbers being operated by fraudsters, money-launderers, criminals etc. It has been found that most criminals and terrorists get SIM cards issued in the name of fictitious and even real people without their knowledge and use them for committing frauds and crime.

When every mobile number is verified and linked with Aadhaar, then fraudsters, criminals, and terrorists using mobiles can be easily identified and punished in accordance with law.

Question 6: Can the mobile company store my biometrics taken at the time of SIM verification and use it for other purposes later?

Answer:​ No one, including, mobile phone companies can store or use your biometrics taken at the time of Aadhaar verification and linking. The biometrics are encrypted as soon as Aadhaar holder places his finger on fingerprint sensor and this encrypted data is sent to UIDAI for verification.

Regulation 17(1)(a) of the Aadhaar (Authentication) Regulations 2016, strictly prohibits any requesting entity which includes mobile phone companies, banks etc from storing, sharing or publishing the finger-prints for any reason whatsoever and neither shall it retain any copy of such fingerprints. Any violation of this provision is a punishable offence under the Aadhaar Act 2016.

Q 7: Do NRIs need Aadhaar for banking, mobile, PAN and other services?

Answer:​ Aadhaar is only for residents of India. NRIs are not eligible to get Aadhaar. The respective service providers like banks and mobile companies have laid down NRI-specific exemptions. NRIs should simply tell the banks and other service providers such as credit card companies etc that they are not required to provide Aadhaar numbers by virtue of being non-resident Indians.

Q 8: Aren’t the poor being denied essential services like pension & rations for want of Aadhaar?

Answer:​ No. It is clearly mentioned in Section 7 that until a person is assigned an Aadhaar number, he/she cannot be denied rations or pensions or such other entitlements for want of Aadhaar and the concerned department should verify the identity of the person using alternate means of identification as per the relevant Notification.

If any government official of a department denies the benefits or services for lack of Aadhaar or failure of verification for technical reasons contrary to the relevant notification, a complaint should be lodged against the higher authorities of those departments for such unlawful denials.

Question 9: Some agencies are not accepting eAadhaar. They insist on original Aadhaar. Why?

Answer:​ eAadhaar (downloaded Aadhaar) from UIDAI website is as legally valid as original Aadhaar issued by UIDAI . Both should be acceptable by all Agencies. In fact downloaded e-Aadhaar has updated address etc of the Aadhaar holders and therefore should be preferable. If anyone refuses to accept downloaded e-Aadhaar, the Aadhaar holder may lodge complaints with higher authorities of those departments/ agencies.

Question 10: How has Aadhaar benefited the common man?

Answer: Aadhaar has empowered 119 crore Indians with a credible identity. Today the fact is that Aadhaar inspires more confidence and trust than any other identity document in India. For example, if you are an employer, which identity document will you prefer from your prospective employees? Or, just ask your maid servant, household help, driver, poor living in slums and villages as to how they are using Aadhaar to prove their identity to get jobs, open bank accounts, for rail travel, and to get various entitlements and government benefits directly into their bank accounts without middlemen. Ask them and they will tell you how empowered they are by having Aadhaar.

Question 11: We keep hearing in media that Aadhaar data was breached. Is it true?

Answer:​ Aadhaar database has never been breached during the last 7 years of its existence. Data of all Aadhaar holders is safe and secure. Stories around Aadhaar data breach are mostly cases of mis-reporting. UIDAI uses advanced security technologies to keep your data safe and secure and keeps upgrading them to meet emerging security threats and challenges.

ICAI FAQs-Ethical issues on GST-CAs can not write himself as GST Consultant

ICAI FAQs-Ethical issues on GST-CAs can’t write himself as GST Consultant. ICAI answers twelve questions on Ethics related to GST 

ICAI FAQs-Ethical issues on GST

ICAI FAQs on ethical issues relating to GST

Q1. Whether a member in practice can engage as GST practitioner?

A. Yes, a member in practice can engage as GST practitioner , as the activities to be performed by GST practitioner mentioned in CGST Act, 2017 read with CGST Rules, 2017 are within the purview of a member in practice as per the provisions of Chartered Accountants Act, 1949 and Regulations framed thereunder.

Q2. Whether a member who has enrolled as GST Practitioner can act as Tax Return Preparer for GST?

A. Yes, as per Rule 83(8) of CGST Rules, 2017, a GST practitioner can inter alia undertake the assignment of filing returns under the CGST Act, 2017.

Q3. Whether a member holding CoP, who is an employee in a CA Firm, can be enrolled as GST practitioner?

A. Yes, he can enrol as GST practitioner (as this is not an attest function), subject to contractual obligations, if any, with the employer .

Q4. Whether a member holding CoP on part time basis, working as an employee in an entity other than a CA Firm, can be enrolled as GST practitioner?

A. A member holding CoP on part time basis and working as an employee in an entity other than a CA Firm can enrol as GST practitioner , subject to contractual obligations, if any, with the employer.

Q5. Can a member/Firm conduct training through seminars etc. on GST?

A. Yes, a member/Firm can conduct training through seminars etc. on GST. However, the member /Firm may only invite its existing clients to such training programmes. Inviting individuals or entities other than existing clients may amount to solicitation , which is prohibited under Clause (6) of Part-I of First Schedule to The Chartered Accountants Act, 1949.

Q6. Whether a member can send presentation/write-up on GST, and include services provided in the same?

A. He can send presentation on GST /write-up on GST only to existing clients, and to a proposed client if an enquiry was received from the proposed client with regard to the same.

Q7. Whether it is permissible for a member to mention himself as “GST Consultant”?

A. No, in terms of provisions of Clause (7) of Part-I of First Schedule to The Chartered Accountants Act, 1949, it is not permissible for a member to mention himself as GST Consultant.

Q8. Whether a member can share GST updates on modes like mass mail /social media?

A. A member can share GST updates, mentioning himself as “CA” with individual name, provided the communication is limited to providing updates. Mention of Firm name is not allowed.

Q9. Whether a member can publish testimonials /appreciation letters received by him with regard to GST Training assignments?

A. Such testimonials are allowed to be mentioned on CA Firm website, but not on social media like Facebook, Linkedin etc.

Q10. Whether a member can provide GST Training ?

A. GST training can be provided to the existing clients.

In case of non-clients, training can be provided only if the member is invited to provide such training.

As part of contribution towards initiatives taken by the Government , ICAI GST Sahayataa Desks have been made operational on pro bono basis at all major cities for training / facilitating understanding of GST among small businessmen, traders, shopkeepers and public at large.

Q11. Whether it is permissible for a member to put a Notice for GST Registration/Return preparation along with mention of his name/name of CA Firm? Whether he can mention fees/charges for providing such services?

A. GST services are part of professional services provided by a chartered accountant, and accordingly, its advertisement has to be in terms with the ICAI Advertisement Guidelines, 2008 only. He cannot mention the fees/charges, as it is not allowed in the Advertisement Guidelines.

Q12. Whether a member in practice can give GST consultation to clients of another professional?

A. The member is not allowed to share fees with another professional ; however, he can engage separately with the clients of such other professional to provide GST consultation.