When is E-way Bill Mandatory

when-E-way-Bill-is-Mandatory

As per the e-way bill rules, there are certain scenarios, where e-way bill requirement is mandatory, irrespective of the value of the consignment. In other words, even if the value of the consignment is less than INR 50,000, such scenarios warrant an e-way bill to be raised, and thus businesses should be aware about when is e-way bill mandatory.

In this blog, we will understand about the 2 major scenarios, when e-way bill is required mandatorily, irrespective of the value of the consignment of goods, which are:

  • Inter-State movement of goods by the Principal to Job Worker by Principal / Registered Job Worker
  • Inter-State movement of handicraft goods from person exempted from registration i.e. from an unregistered dealer

When is e-way bill mandatory?

Inter-State movement of goods by the principal to the job worker by principal / job worker

Let us begin by revisiting our understanding of job work under GST. Job work primarily means the undertaking of any treatment or process by a person on goods belonging to another registered taxable person. It can be undertaken for the initial process, intermediate process, assembly, packing or any other completion process in the manufacturing cycle. Any such person who undertakes the job work is referred to as the job worker.

Now, as per the CGST rules, information with regards to the e-way bill is to be furnished prior to the commencement of the movement of goods, and also, the e-way bill is to be issued whether the movement is in relation to a supply or for a reason other than supply. The reason “other than supply” includes Job Work, removal for testing purpose, send on approval basis, non-taxable supply etc.

Thus, in keeping with the above, the provisions when is e-way bill needed are as follows:

  • When goods are sent by a principal located in one State to a job worker in any other State, the e-way bill shall be generated by the principal, irrespective of the value of the consignment, i.e. e-way bill requirement is mandatory
  • The principal is liable to generate the e-way bill before commencement of such movement of goods
  • If the job worker who causes movement of goods is registered, the job worker has to generate the e-way bill, otherwise the principal has to generate the e-way bill
  • If the job worker is registered and goods are returned back to the principal then, the job worker has to generate the e-way bill, since the movement is caused by the job worker
  • If the job worker is unregistered, then either the principal or the transporter may generate the e-way bill

Inter-State movement of handicraft goods from person exempted from registration i.e. from an unregistered dealer

When handicraft goods are transported from one State or Union territory to another State or Union territory by a person who has been exempted from the requirement of obtaining registration, i.e. someone who is an unregistered person, the e-way bill shall be generated by the said person irrespective of the value of the consignment. In other words, if such a person dealing in handicraft goods wants to understand when is e-way bill mandatory, the answer is yes, there is a mandatory e-way bill requirement.

The following are the list of handicraft goods for which e-way bill requirement is mandatory, as specified under the e-way bill rules:

  • Leather articles (including bags, purses, saddlery, harness, garments)
  • Carved wood products (including boxes, inlay work, cases, casks)
  • Carved wood products (including table and kitchenware)
  • Carved wood products
  • Wood turning and lacquer ware
  • Bamboo products (decorative and utility items)
  • Grass, leaf and reed and fibre products, mats, pouches, wallets
  • Paper mache articles
  • Textile (handloom products)
  • Textiles hand printing
  • Zari thread 5605
  • Carpet, rugs and durries
  • Textiles hand embroidery
  • Theatre costumes
  • Coir products (including mats, mattresses)
  • Leather footwear
  • Carved stone products (including statues, statuettes, figures of animals, writing sets, ashtray, candle stand)
  • Stones inlay work
  • Pottery and clay products, including terracotta
  • Metal table and kitchen ware (copper, brass ware)
  • Metal statues, images/statues vases, urns and crosses of the type used for decoration of metals
  • Metal bidriware
  • Musical instruments
  • Horn and bone products
  • Conch shell crafts
  • Bamboo furniture, cane/Rattan furniture
  • Dolls and toys
  • Folk paintings, madhubani, patchitra, Rajasthani miniature

In conclusion, principal businesses and job workers, as well as unregistered dealers dealing in handicrafts, who are dealing in inter-State supplies, need to be aware about when is e-way bill mandatory and should be equipped to raise an e-way bill irrespective of the value of the transactions.

Update your Tally.ERP 9 to Release 6.4 for latest enhancements

Tally.ERP 9 Release 6.4 is our latest product for businesses, launched on 23rd Feb. 2018.

If you are a business owner, do you need to upgrade to this release? If you are a tax consultant, must you ask your clients to upgrade?  These are some obvious questions in your minds.

In this blogpost, we will take you through the benefits of using Release 6.4. We are confident that by the time you have finished reading this blogpost, you will have all your doubts cleared.

Release 6.4 addresses two important needs of our customers. E-Way Bill management and GST compliance for composite dealers.

Enhancements in Tally.ERP 9 Release 6.4

1. e-Way Bill Management

If you are a business owner, e-Way Bills are going to become bigger part of your daily life sooner than you expect. If you are transporting goods worth Rs. 50,000 or more and beyond the distance of 10 kms or more, you can do so only with an e-Way Bill.

As enablers of GST compliance for businesses, we have introduced e-Way Bill Management in Tally.ERP 9. Let’s walk through the important benefits of using Tally.ERP 9 for managing your e-Way Bills.

Generate e-Way Bills quickly

Tally.ERP 9 makes your life simpler! While creating an invoice, as soon as you start keying in the details, Release 6.4 allows you to capture additional transportation related details at the same time. You can export the invoice in a JSON file and upload it on the e-Way Bill portal to generate the e-Way Bill. The e-Way Bill Number (EBN) appears on the e-Way Bill along with other details.

You can enter the EBN against the corresponding invoice in Tally.ERP 9, take a print and hand it over to your transporter.

With Tally.ERP 9, you don’t have to re-enter all the invoice details again on the e-Way Bill portal for the purpose of generating e-Way Bill and save valuable time while reducing operational effort.

Create e-Way Bills for single or multiple invoices

Let’s take a case where you have received multiple orders and prefer to dispatch them together. Tally.ERP 9 allows you to easily generate e-way bills for all these invoices in one go. With latest version of Tally.ERP 9, you can export for all these invoices together at one go, rather than generating individual JSON files for each single invoice.

Tally.ERP 9 gives you the flexibility to generate e-Way Bills as per your business behaviour.

Create e-Way bills for different business scenarios

As a business, you come across different scenarios on a day-to-day basis. Sometimes, your supplier may not be able to generate an e-Way Bill. You might have made a purchase from an unregistered dealer who is unable to generate the e-Way Bill. If you are returning back some goods to your supplier, then you must have an e-Way Bill. Tally.ERP 9 gives you the flexibility to deal with all such scenarios and generate e-Way Bills under any circumstances.

You can also export JSON files of purchases, credit notes, delivery notes and receipt notes to generate e-Way Bills.
Track and manage transactions which need e-Way Bills
If you have hundreds of transactions, it can be difficult to keep a track of all those which qualify for e-Way Bills. No more worries! Tally.ERP 9 identifies transactions for which e-Way Bills are yet to be generated.

You can also find out invoices with missing information from the e-Way Bill Report and fill in the necessary information. You can update transactions with missing EBNs under Update e-Way Bill Information tab.

Generate Consolidated e-Way Bill

The e-Way Bill portal allow you to generate a consolidated e-Way Bill if the place of supply, State, mode of transport and vehicle number are the same. You can group invoices accordingly in Tally.ERP 9, generate a consolidated JSON and upload the same to the portal for generating a consolidated e-Way Bill. However, before doing this, ensure that you have generated e-Way Bills for each invoice individually which is a prerequisite.

Another important need that we addressed in latest version of Tally.ERP 9 is GST compliance for Composite Dealers.

2. GST Compliance for Composite Dealers

If your business turnover is equal to or less than Rs.1.5 crores, then you can opt for the Composition Scheme. Although the burden of tax compliance is lesser if you are a composite dealer, you still have to file GSTR-4 on a quarterly basis and follow some simple steps for compliance.

Tally.ERP Release 6.4 is a seamless GST solution for composite dealers. You can maintain books, configure tax rates, generate Bill of Supply, manage reverse charge transactions and generate GSTR-4 in JSON for filing. Below are the business benefits of using Tally.ERP 9 Release 6.4 for Composite dealers.

Configure tax rate in a single step

A flat tax rate of 1% is applicable for manufacturers and traders under the Composition Scheme. It takes just a step to configure the tax rate in your Tally.ERP 9 at the company level. Tally.ERP 9 calculates tax liability on your total taxable turnover.

We all know that tax rates can change under the GST regime. In such cases, you can apply the new applicable tax rate and maintain earlier transactions with their tax history in Tally.ERP 9. Let us understand this better by way of an example.

Assume that a tax rate of 2% is applicable from 1st April to 20th May, while 1% tax rate will be applicable from 21st May to 30th June. Tally.ERP 9 will automatically consider both the tax rates along with their applicable dates in your GSTR-4.

Segregate taxable, nil rated and exempted sales

As per the latest notification of CBEC (Central Board of Excise & Customs), composite dealers have to pay tax on their taxable turnover. To arrive at the right amount of taxable turnover, as a composite dealer, you must segregate the sales into taxable, nil rated and exempted sales. Tally.ERP 9 takes care of this when calculating tax liability on taxable turnover.

Record your purchases in the right manner

As a composite dealer you cannot claim any Input Tax Credit on purchases, yet have to pay taxes. Now these taxes have to be factored in under purchase cost.

With Tally.ERP 9 Release 6.4, firstly you can define the amount of tax in the Item Master. Secondly, this tax amount gets allocated to your purchase cost. This reflects in your Stock Summary Cost under the Stock Summary Report. Although the tax rates are configured for each item, Tally.ERP 9 ensures that the rates get applied only when you make purchases and not when you engage in any sales.

Manage reverse charge transactions

A composite dealer is liable to pay reverse charges in case of specified purchases and import of services. With Tally.ERP 9 Release 6.4, you can record such transactions easily and their impact reflects in your GSTR-4, provided you raise tax liability using the Stat Adjustment feature.

Generate and print Bill of Supply

Composite dealers have to issue Bill of Supply instead of invoices for all their sales.  With Tally.ERP 9 latest version, you can prepare Bill of Supply as per GST defined format and issue them for sales.

File GSTR-4 using Tally.ERP 9

Composite dealers have to file GSTR-4 on a quarterly basis. If there are any errors in transactions, Tally.ERP 9 detects and helps you to correct them while you prepare the data for GSTR-4. You can easily generate GSTR-4 in a JSON format, which can be uploaded on GST Portal to file the returns.
Release 6.4 has many more rich capabilities to help you manage your GST compliance better. We would like to hear from you, especially your experience of this release. Do upgrade, use the latest version and also share with your business colleagues so that everyone is able to make use of the benefits of our latest Tally.ERP 9 Release 6.4.

Click here for release notes

Click here for download

Update your Tally.ERP 9 to Release 6.3 for latest enhancements

Dear Customer,
The due date for filing GSTR-3B for every month is on the 20 th of the subsequent month. For November 2017, the due date is 20 th December 2017.

Enhancements in Tally.ERP 9 Release 6.3.

Export GSTR-3B in JSON format

  • You can now directly export GSTR-3B form in JSON format from Release 6.3 and upload it to the GST portal.
  • If you prefer to view the GSTR-3B in MS Excel before uploading, you can do so as well. Download the GSTR-3B Offline Utility from the GST portal. Tally.ERP 9 exports details of the transactions into the GSTR-3B MS Excel form. Click on Validate button in the form. Upon successful validation, you can generate the form in JSON and upload it to the portal.

Print invoices with item-wise and rate-wise breakups

  • Make your customers happier by printing invoices with complete item-wise and rate-wise tax breakup details. You can see tax details (CGST, IGST, SGST, Cess) individually for each line item. Press F12 > Enable Print Item-wise GST details . Tally.ERP 9 automatically changes the print setting to Landscape .

Generate quarterly GSTR-1 returns

  • As per the announcements made in the 23rd GST Council Meeting, regular dealers with turnover less than 1.5 Cr have to file GSTR-1 on a quarterly basis. As soon as this feature is enabled in the GST portal, you can generate your quarterly GSTR-1 return from Tally.ERP 9 Release 6.3 as well.
  • In Gateway of Tally , click F11 > F3 > Statutory details . Choose: Set/Alter GST details . A new option, Periodicity of GSTR-1 is available. Select Quarterly here.

Inclusion of Interest and Late Fees payable

  • Tally.ERP 9 Release 6.3 has enhanced GSTR-3B with a new inclusion of Table 5.1  Interest and Late Fees Payable . You can record details of any interest or late fees that you might have to pay here and keep your books updated.

Click here for release notes

Click here for download

Tally.ERP 9 Series A Release 6.0.2, July, 2017

Highlights

Printing HSN/SAC code on the invoice

Some customers faced issues while printing the HSN/SAC on their invoices. We have solved this problem.

Customers can define HSN/SAC at any level as needed and Tally.ERP 9 will take care of printing the HSN/SAC code on the invoices.

See this help topic or watch this video to understand how the codes and rates are processed by Tally.ERP 9. This will also help you make use of the powerful flexibility offered in setting rates at different levels.

Viewing existing data in the previous release after upgrade

Some customers want to view their data in their old release of Tally.ERP 9 after upgrading to Release 6.

With this upgrade, Tally.ERP 9 Release 6.0.2 will be installed in a new folder. Restore backed up data in a different folder, and open the company in the previous release of Tally.ERP 9. The Tally.ERP 9 license will work for both releases seamlessly.

Note: Always remember to restore your backed up data in a different folder to prevent overwriting the upgraded data.

VAT – Jammu and Kashmir

Exporting VAT Annexure 49 to MS Excel was taking an extremely long time.

This has been addressed. You will find that exporting is much quicker now.

GST

     You can set up GST rates for a particular price range/slab for multiple stock items from GST Rate Setup screen.

     The company’s GSTIN/UIN was not displayed in the invoice printout when the secondary address of the company was selected for printing. This issue is resolved.

     If you enabled the option Print company logo? in the Receipt Printing Configuration screen, the company’s GSTIN/UIN was not displayed in the printed advance receipt. This issue is resolved.

     In the GST sales invoice printout, the state codes of consignor and consignee were printed incorrectly in neat mode when:

o     Multiple addresses were enabled for the party.

o     The option Allow separate buyer and consignee names? was enabled in the Voucher Configuration screen.

This issue is resolved.

     The address details in the Buyer section of the invoice printout was shrinking when the options Print State Name & State Code? and Print Place of Supply? were set to Yes in the Invoice Print Configuration screen. This issue is resolved.

     The HSN/SAC was not displayed in the printed invoice when it was recorded with:

o     Stock items predefined with HSN/SAC.

o     Sales/purchase ledgers predefined only with tax rate and not the HSN/SAC.

This issue is resolved. Now, if the HSN/SAC is not defined in the sales/purchase ledger, but is available in any of the masters linked to the transaction, the same will be printed in the invoice.

     When the sales invoice or delivery note was printed from voucher display mode, the Place of Supply was not displayed. This occurred even when the option Print Place of Supply? was set to Yes in the Invoice Print Configuration screen. This issue is resolved.

VAT

Jammu and Kashmir

     The data export to MS Excel templates is enhanced as given below:

o     Values are exported invoice-wise in a single row, with values of each tax rate displayed in respective columns. When there is more than one tax rate belonging to the Other % column of the template, the column will be left blank. The values of both tax rates will be consolidated and displayed in Amount (Other %) column. This is provided in Annexure 48, 48C, 48I, 48IS, 48L, 48S, 49, 49I, and 49S.

o     The Commodity name predefined for the stock item with the highest value in the invoice is captured in the Nature of Goods column of Annexure 48IS, 48L, 48S and 49S.

     Exporting data to the MS Excel template of Annexure 49 was taking too long. This issue is resolved.

Rajasthan

     Data export to the latest template of Form 10 is supported for filing e-returns. The details of VAT/CST payment vouchers are captured from row 33 instead of row 27 of the Details of Tax Due sheet of the template VATForm10_2015.xls.

TDS/TCS

     The latest File Validation Utility (FVU) tool version 5.5 is supported to validate the forms for E-TDS/TCS before filing returns.

The following changes are supported as per the latest FVU tool version 5.5:

o     The nature of payment Payment of Cash Consideration by Real Estate Developer to Property Owner has been renamed as Payment Under Specified Agreement with the Payment code of 41C.

o     As per the changes in section code 206CC, in the party ledger, when PAN/IT No. is defined as PANAPPLIED or PANINVALID or PANNOTAVBL for sales made with the nature of goods Timber Obtained by Any Mode Other Than Forest Lease, the transaction will be marked as C in the data exported to the text file for filing e-returns.

Licensing

     Tally.ERP 9 Release 6 moved to educational mode without any notification when there were incompatible Account TDLs or Addons. Tally.ERP 9 Release 6.0.2 does not move to educational mode, and allows you continue to use Tally.ERP 9.

However, you need to contact your Tally Partner to make your customisations compatible with Release 6 or later.

Data Management

     The installation path of Tally.ERP 9 has been changed to C:\Program Files\Tally\Tally.ERP9 to avoid overriding of installation of releases prior to 6.0.2.

     When the data backup failed, the messages displayed were incomplete as the next course of action was not mentioned in them. The issue is resolved.

Now, the error messages display the corrective course of action such that you can resolve the problem yourself.

Click here for release notes

Click here for download

Managing HSN Codes/SAC and Tax Rates in Tally

You can specify HSN code/SAC details and tax rates at different levels for the goods or services provided by your business. This is a flexibility provided for ease of use to accommodate your business needs.

It is recommended to specify the HSN code/SAC and tax rate at the same level.

Order in which HSN code and tax rate are applied for goods

Specifying HSN code and tax rate

Based on your business requirements, you can provide HSN codes and tax rates at different levels.

Business Requirement

Definition At

Most of the goods have the same HSN code and tax rate

Company

A group of items have the same HSN code and tax rate

Stock group

A few items have different HSN codes and tax rates

Stock item

Want to apply the same HSN code and tax rate for different transaction types

Sales/purchase ledger group

Want to segregate sales or purchase of items with the same HSN code and tax rate

Sales/purchase ledger

Change the tax rate (not HSN code) during transaction

Transaction

After defining a tax rate at the company level, if a group of items attracts another rate, specify at the stock group level. For the items in the group, the rate specified at the group level is applicable. After specifying tax rates at the stock group level, if a few items in the group attract a different rate (or the rate set at the company level), override using rate setup at the stock item level. For the items, the rates specified at the stock item level are applicable.

You can specify tax rates at the sales or purchase ledger level, or at the ledger group level. This helps in situations where a special tracking as per the nature of tax is required. For example, you can use a ledger called Diplomat-Sale for exempt sales of taxable goods when the buyer is a diplomat. Then the rate defined at the ledger level will override the tax rates set at the company, stock group, or stock item levels.

Note: For ease of maintenance and appropriate use of tax rates, specify the rates at the level where you mark the goods as taxable.

A similar order is applicable in the case of HSN codes.

In case you need to specify a separate tax rate for an item in a specific transaction, you can do so, and the rate specified during the transaction will get the highest priority.

Order in which SAC and tax rate are applied for services

Specifying SAC and tax rate

Based on your business requirements, you can provide SAC and tax rate at different levels.

Business Requirement

Tax Rate Definition At

Most of the services have the same SAC and tax rate

Company

A group of services have the same SAC and tax rate

Service ledger

Want to apply the same SAC and tax rate for different transaction types

Sales/purchase ledger group

Want to segregate sales or purchase of services with the same SAC and tax rate

Sales/purchase ledger

Change the tax rate (not SAC) during transaction

Transaction

After defining a tax rate at the company level, if a few services attract a different rate, specify the rate in the service ledger. For the services, the rates specified at the service ledger level are applicable.

You can specify tax rates at the sales or purchase ledger level, or at the ledger group level. This helps in situations where a special tracking as per the nature of tax is required. For example, you can use a ledger called Diplomat-Sale for exempt sales of taxable services when the buyer is a diplomat. Then the rate defined at the ledger level will override the tax rates set at the company level or at the service ledger level.

Note: For ease of maintenance and appropriate use of tax rates, specify the rates at the level where you mark the service as taxable.

A similar order is applicable in the case of SAC.

In case you need to specify a separate tax rate for a service in a specific transaction, you can do so, and the rate given during the transaction will get the highest priority.