E-way Bill under GST in Andhra Pradesh

The e-way bill system is an online system that requires the generation of an e-way bill for the movement of goods worth more than Rs. 50,000. The provider or the recipient of the products creates the e-way bill. The e-way bill is valid for 1–15 days, depending on the distance the goods travel. The transporter of the goods must carry the e-way bill. The e-way bill must also be presented to the GST authorities during transit. The e-way bill system is expected to reduce the transit time of goods, reduce the cost of compliance for businesses, and help the government to track the movement of goods and prevent tax evasion.

Waybill in Andhra Pradesh: Pre-E-Way bill era

India's Andhra Pradesh state has distinguished itself as having a well-developed social, physical, and industrial infrastructure. Over the past ten years, the state has also drawn a lot of FDI. The state has an advantage for business when it comes to exports and industrial operations because of its excellent port and airport infrastructure. The fact that there are already 20 active SEZs in the state demonstrates the focus the Andhra Pradesh government has on economic growth in the region. The government has made an effort to make the taxes as advantageous for its enterprises and commerce as feasible.

Andhra Pradesh has announced a transit permit system during the VAT era to trace the flow of products and prevent revenue leakage in the state. A permit in Form 600/602 was required to be created and transported with the vehicle during the transfer of goods from one location to another for any movement of taxable commodities into, from, or into the state. This was produced by going to the website of Andhra Pradesh's business tax department. The state government informed the commodities whose passage the advance waybills would need to be generated back in 2005. Since the introduction of the e-way bill, all previous criteria have been discontinued.

A Form X or 600 has to be created electronically in triplicate for each inward transfer of commodities. Form 602 was mandated and must be produced in triplicate for the departing items.

E-way bill for shipping goods outside the state

The interstate or cross-border movement of goods has been incorporated into the National E-Way Bill System as of April 1, thanks to a decree issued by the Central Government on March 7, 2018. As a result, the dealers in Andhra Pradesh are obliged to create an e-way bill on the NIC Portal for each transportation to an outside location.

E-way bill for shipping goods within the state

Following the advent of the GST in July 2017, the state government mandated the cessation of the requirement for waybill production as of today. According to a new regulation published on April 11, starting on April 15, e-way bills would be necessary to create if the value of the items being transferred exceeds Rs. 50,000. The demand for a transit ticket has been made essential for dealers in Andhra Pradesh after the state and four other states reached an agreement on the matter.

Different ways to generate E-way bills

The E-way bill can be produced using one of two methods:

• Using the internet-based gateway

• Using SMS (Short Message Service).

Dealers must go to the NIC Portal to generate e-way bills using the online portal. Information like the consignee's name and address, the item's description, value, quantity, etc., must be provided to construct the e-way bill.

SMS as a way to generate E-way bills in Andhra Pradesh

The Central Government has also introduced a method for producing e-way bills through SMS. Please adhere to the instructions provided below to use this service.

Validity of E-way bill

An e-way bill is valid for the times mentioned earlier, which are often depending on how far the goods in transit have gone. The validity of the e-way bill is computed from the time and date whenever the e-way bill was created.

E-way bills can also have their expiration dates extended. The creator of such an e-way bill must prolong its validity either four hours before its expiration or four hours after it has passed.

Rejection of E-way bill

Using the dealer's GSTIN, a dealer can reject any e-way bill created by a receiver or supplier. The recipient could veto the e-way bill, for instance, if the shipment were cancelled en route and never made it to the destination. For a dealer to reject an e-way bill, they need the following.

• Date when the e-way bill was created

• The number of the e-way bill you wish to discard

E-way bill rejection procedures:

• On the e-way bill portal, log in with your credentials and click on the 'Reject' tab on the left side of the page.

• Select the date from the calendar and click on 'Submit'.

• The list of all e-way invoices produced on the chosen date is displayed.

• Select the e-way bills you want to reject by checking them.

• Once the e-way bill has been successfully refused, a notification is displayed on the screen.

Note: It is possible to express agreement or rejection of the e-way bill. The e-way bill will be approved unless notice of acceptance or rejection is made within 72 hours.

Cancellation of E-way bill after its generation

If the items were never delivered or carried following the information in the e-way bill, the maker of such e-way bills might utilise the procedures described below to cancel the e-way bill. The following are the steps to cancel an e-way bill.

Step 1: When you click on "E-way bill" or "Consolidated EWB," choose "Cancel" from the drop-down menu.

Step 2: Click "Go" after entering the 12-digit E-Waybill number of the EWB you wish to cancel. The chosen EWB appears. Give a reasonable explanation for the cancellation. For instance, the Eway bill's input needs to be more accurate, and the products need to be transferred.

When cancelling an Eway bill, keep the following in mind:

• Only the person who generated the e-way bill can cancel it.

• The cancellation period is 24 hours after the e-way bill is generated.

• A withdrawn e-way bill cannot be used again.

• The Eway bill cannot be cancelled if an authorised authority has confirmed it.

Common problems experienced by Andhra Pradesh merchants

Retail traders in Andhra Pradesh frequently complain that the 5% tax on textiles and the 12% tax on ready-made clothing are too excessive. There used to be no tax on yarn and cotton textiles. Therefore this has led to a significant drop in business. The VAT rate for ready-to-wear products was between 5% and 7.5%. Smaller dealers and traders have suffered significant losses as a result.

Small-scale traders are particularly affected by the issue. A sizable group of exporters also has problems getting GST refunds on exports. They believe that when sufficient return flows are present, dealers' access to operating capital is unrestricted, which makes it difficult for them to run their operations effectively.