E-way bill in case of storing of goods in godown of transporter

[Ganeshan Kalyani]

As per rule 138 of the Central Goods and Services Tax Rules, 2017 e-way bill is required for the movement of goods from the supplier’s place of business to the recipient’s place of business.

The textile sector are unable to comply this provision because they store their goods in the transporter’s godown due to storage problem in their place of business. The textile trader buy the goods and before receiving it at their place of business they ask the transporter to keep/store it in their godown. In this case the e-way bill validity is required to be extended till the time the goods reaches the buyer’s place of business. This proved to be very difficult to comply with the requirement. Hence, a way out have been given to this sector by the Government vide Circular No. 61/35/2018-GST dated 04.09.2018.

The consignee/recipient taxpayer who stores his goods in the godown of the transporter has to add the transporter’s godown, with the concurrence of the transporter, as an additional place of business in his GST registration certificate. When the transporter’s godown is added by the consignee in his GST certificate the transportation under the e-way bill will be deemed to be concluded once the goods have reached the transporter’s godown. Hence e-way bill validity in such cases will not be required to be extended. It is to be understood that Government is not putting any additional compliance requirement on the transporters by adding his godown as additional place of business of the consignee.

Further, if the goods are to be moved from the transporter’s godown which is added as an additional to another place of business of the consignee then e-way bill is required to be generated as this movement will be a new transaction.

Further, it is also given in the circular that the transporter shall continue to maintain accounts and records as specified in section 35 of the CGST Act read with rule 58 of the CGST Rules as a warehouse keeper. Furthermore, the consignee shall also maintain accounts and record as required under rules 56 and 57 of the CGST Rules. The consignee is also allowed to maintain accounts in relation to goods stored at transporter’s godown at his principal place of business.

In my view, the benefit given under this circular may be applied to similar kind of transaction. In some case the importer imports the goods and clear it from the customs by paying applicable import duty. But due to shortage of place to store those goods the import stores them at third party’s warehouse. As per the circular the warehouse to be added as an additional place of business of the importer with concurrence of the warehouse keeper. Thus, the receipt of goods from customs to warehouse the transportation of goods in the e-way bill is considered as concluded. The requirement of maintaining books of accounts is also required to be taken complied by the importer.