Validity add-on of e-Way Bill not required when goods stored in transporter’s godown

Reports have come in that the Central Board of Indirect Taxes and Customs (CBIC) has announced that there will be no need to extend the validity of the e-Way Bill when the goods are stored in the warehouse of the transporter.

This move on the part of the CBIC will definitely provide relief to the textile sector and to a large extent mitigate the problems that are perturbing weavers and artisans. Storing their goods has been a major cause of conce
for these artisans and weavers.

What did the CBIC say?
The CBIC issued a missive that said,

‘Where the transporter’s godown has been declared as the additional place of business by the recipient taxpayer, the transportation under the e-way bill shall be deemed to be concluded once the goods have reached the transporter’s godown (recipient taxpayer’ additional place of business). Hence, e-way bill validity in such cases will not be required to be extended,”

What the missive meant to clarify was that if the goods of a seller or a recipient is kept in the godown of a transporter, then this godown can be declared as an additional place of business by the recipient taxpayer. The CBIC has clarified that just a declaration to this effect by the recipient taxpayer after the transporter has furnished his consent would be enough to claim this benefit.

Provisions of e-Way Bill applyr
Even when the transporters’ godown has been declared as the additional place of business for a consignor/consignee, the e-Way Bill rules still apply.

The circular released by the CBIC said,

“Further, whenever the goods are transported from the transporters’ godown, which has been declared as the additional place of business of the recipient taxpayer, to any other premises of the recipient taxpayer then, the relevant provisions of the e-way bill rules shall apply. Hence, whenever the goods move from the transporter’s godown (i.e, recipient taxpayer’s additional place of business) to the recipient taxpayer’s any other place of business, a valid e-way bill shall be required, as per the extant State-specific e-way bill rules.”

Further ramificationsr
This decision of the CBIC will go a long way in alleviating a lot of problems of the transport industry. The godowns of the transporters may be treated as transit godowns. Any transporter of goods who will provide this warehousing facility will have to enrol themselves under the GST regime. When the transporter receives goods and stores them temporarily, detailed records of the same should be maintained.