Under Section 68 of the Goods and Services Tax Act, 2017 (GST Act), the government can require the person in charge of a conveyance carrying goods of a certain value to carry specific GST Act, 2017documents and devices. These requirements are further elaborated in Rule 138A of the CGST Rules, 2017. Here’s a breakdown of the main points:

Documents:

• Invoice, Bill of Supply, or Delivery Challan: The person in charge must carry the relevant document proving the nature of the goods being transported. This could be the invoice for a taxable sale, the bill of supply for a non-taxable supply, or a delivery challan for other situations like job work or movement within the same entity.
• E-way bill: This electronic document is generally mandatory for transporting goods exceeding a GST Act, 2017certain value within a state or between states. The person can carry either a physical copy of the e-way bill, the e-way bill number in electronic form, or have the e-way bill mapped to a Radio Frequency Identification Device (RFID) embedded on the conveyance.

Devices:

• Radio Frequency Identification Device (RFID): In certain cases, the government may require a specific class of transporters GST Act, 2017to use an RFID device embedded on their conveyance. This device would be linked to the e-way bill for easier tracking and verification.

Exceptions:

There are some exceptions to the above requirements, such as:

• Goods transported by rail, air, or vessel.
• Goods below a certain value threshold (determined by the government).
• Movement of goods within the same premises or for short distances.

Verification and Penalties:

• Authorized officers can stop and check the conveyance and require the person in charge to produce the documents and devices for verification.
• Failure to comply with these requirements can lead to penalties under the GST Act.

                                                EXAMPLE

Documents and devices required under Section 68 of the CGST Act, 2017 in a specific state of India:

The specific documents and devices required by a person in charge of a conveyance under Section 68 of the CGST Act, 2017, depend on several factors, including:

• The value of the goods: The Government may specify a minimum value of goods, above which GST Act, 2017the requirement applies. As of January 2024, the threshold value for most states in India is Rs. 50,000.
• The state in which the movement is taking place: Different states may have additional requirements or exemptions under their own State GST laws.

However, some general requirements apply across all states:

Essential Documents:

• E-way bill: In almost all cases, an e-way bill is mandatory for GST Act, 2017 any movement of goods exceeding the specified value. This electronic document must be generated on the GST portal before the commencement of the movement and contains details about the consignor, consignee, goods, and value.
• Invoice or Bill of Supply: A physical copy of the invoice or bill of supply related to the GST Act, 2017consignment of goods needs to be carried. Alternatively, an Invoice Reference Number (IRN) generated from the GST portal can be presented electronically.
• Delivery Challan (optional): If the goods are not being transported with an invoice or bill of GST Act, 2017supply, a delivery challan with details of the goods and movement purpose may be required.

Additional Documents (may vary depending on the state):

• Permit for specific goods: Certain goods like liquor, tobacco, hazardous materials etc. may require additional permits or licenses besides the GSTGST Act, 2017
• State-specific documents: Check the GST rules or notifications of your specific state for any additional documentation requirements.

Devices:

• Radio Frequency Identification Device (RFID): Some GST Act, 2017 states may require vehicles carrying goods exceeding a certain value to be equipped with an RFID tag for real-time tracking.

It’s important to note that:

• The onus of carrying the required documents and devices lies with the person in charge of the conveyance.
• Failure to comply with the provisions of Section 68 can lead to penalties and confiscation of goods.

Specific information for your state:

To get the exact details of documents and devices required in your state, you can:

• Visit the official GST website of your state.
• Consult a tax advisor or chartered accountant.
• Download the “GST e-way Bill” mobile app and select your state for updated information.

                                            FAQ QUESTIONS

Q: What documents and devices must a person in charge of a conveyance carry under Section 68 of the GST Act?

A: The person in charge must carry:

• Invoice or Bill of Supply or Delivery Challan: This provides details of the goods being transported, such as description, quantity, value, and GST rate.
• E-way Bill: This GST Act, 2017 electronic document is mandatory for inter-state movement of goods exceeding a specified value, and within some states for intra-state movement. It can be carried in physical form, electronically, or mapped to a Radio Frequency Identification (RFID) device embedded on the conveyance.

Q: When is an E-way Bill not required?

A:GST Act, 2017 E-way Bill is not required in several cases, including:

• Movement of goods within 10 km from the supplier’s or recipient’s premises.
• Certain exempted goods like food items, agricultural produce, and used household goods.
• Transportation of goods for personal use, not exceeding Rs.50,000 in value.

Q: What can be used instead of an E-way Bill if it’s not required?

A: In certain situations where E-way Bill is GST Act, 2017 not mandatory, the Commissioner may specify alternative documents:

• Invoice, Bill of Supply, or Bill of Entry.
• Delivery Challan (DC) issued in triplicate as per GST rules.

Q: Can an Invoice Reference Number (IRN) be used instead of the physical invoice?

A: Yes, a registered person can obtain an IRN from the GST common portal by uploading the tax invoice. This IRN can be shown electronically for verification instead of the physical invoice.

Q: Can an RFID device be used instead of carrying the E-way Bill physically?

A: Yes, the Commissioner may notify GST Act, 2017 specific categories of transporters to use RFID devices embedded in their vehicles. The E-way Bill can be mapped to this device, allowing for easier verification by authorities.

Q: What happens if the person in charge doesn’t carry the required documents or devices?

A: Not carrying the prescribed documents or devices may attract penalties under the GST Act. These penalties can vary GST Act, 2017 depending on the nature and value of the goods being transported.

                                                  CASE LAWS 

Section 68 of the Goods and Services Tax (GST) Act, 2017, empowers the government to require the person in charge of a conveyance carrying goods of a certain value to possess and present specific documents and devices GST Act, 2017 for inspection by authorized officers. However, the details of these documents and devices aren’t directly specified in the section itself. Instead, the government specifies them through notifications and rules.

Here’s a breakdown of the relevant provisions:

1. Government Notifications:

• The government can notify a minimum value of goods above which the document and device GST Act, 2017requirements under Section 68 apply. Currently, this threshold is ₹50,000.

2. Rules under Section 68:

• The Central Government has framed rules 138 to 138E under the CGST Act, 2017, specifically related to Section 68. These rules prescribe the following:
  • Documents: Primarily, the GST Act, 2017person in charge must carry an e-way bill for the goods being transported. This electronic document contains details about the consignor, consignee, type and quantity of goods, value, and tax information.
  • Devices: In certain cases, the government may GST Act, 2017 specify the use of additional devices for tracking or validating information. However, currently, no such devices are mandatory.

3. Case Laws:

While Section 68 itself doesn’t have specific case laws GST Act, 2017 directly interpreting its provisions, there are numerous judgments related to e-way bills and their validity under Section 68. These cases involve situations like expiry of e-way bills, transportation without e-way bills, and discrepancies in invoice and e-way bill information. Some important takeaways from these case laws include:

• The absence of a valid e-way bill can attract penalties, seizure of goods, and even prosecution.
• Expiry of an e-way bill doesn’t necessarily make the movement illegal if accompanied by proper invoices and justification.
• Discrepancies between invoices and e-way bills need to be explained logically to avoid penalty GST Act, 2017under Section 68.

Disclaimer: This information is intended for general awareness and shouldn’t be construed as legal advice. For specific guidance on your situation, please consult with a qualified tax professional.