One aspect related to e-way bills which has not been adequately understood and debated by the industry at large is the reconciliation of e-way bills generated with the data declared in GST returns.
One of the main objectives of the e-way bill provision is to curb revenue leakage. Hence, in the near future, businesses can be expected to receive notices/queries seeking explanations for discrepancies in the data reported in the GST returns vis-à-vis the e-way bill portal. Although there is currently no link between the e-way bill and GST return portals, the government has put forth certain clear expectations and the same can be anticipated based on the recent cases of notices being issued to businesses for differences in the data declared in GSTR-3B and GSTR-2A returns.
Considering the extensive quantum and nature of data declared in GSTR-1 vis-à-vis the specific instances and requirements for issuance of e-way bills, it becomes imperative for businesses to prepare themselves in advance by reconciling both the databases.
The following points need to be considered while trying to reconcile e-way bill data with GST returns:
The above discussion clearly underlines the need for businesses to start preparing themselves and simultaneously ascertain whether technological intervention is required to sync reports with the GST database.
It may be worthwhile to recall the challenges under the erstwhile VAT regime, where a mismatch between entry permits and returns data would attract the allegation of clandestine removal and allied tax demands. In order to avoid such a situation, necessary precautions have to be taken in a timely manner.
Partner and Leader, Indirect Tax, PwC India
Tel: +91 124 3306507
Partner and Deputy Leader, Indirect Tax, PwC India
Tel: +91 22 6689 1455