Common enrolment number across multiple states for transporters

e way bill

The e Way Bill has invited criticism from traders and businessmen from various sectors. They have been asking the roll-back of this Bill for specific products as they thought that it was putting an extra financial burden on them.

Some states have also increased the threshold for generating intra-state Electronic Way Bill to Rs 1,00,000 from Rs 50,000. Some states have also exempted specific category of goods from requiring generating the Bill at all.

However, the Finance Ministry has recently come up with new rules that will help the logistics sector to comply with the Digital e Way requirements more easily. The rules concern transporters who run businesses in more than one state.

What does the rule say?

The Central Goods and Services Tax (Sixth Amendment) Rules, 2018, came into effect on the 19th of June. It says,

“A transporter who is registered in more than one State or Union Territory having the same Permanent Account Number, may apply for a unique common enrolment number by submitting the details in FORM GST ENR-02 using any one of his Goods and Services Tax Identification Numbers, and upon validation of the details furnished, a unique common enrolment number shall be generated and communicated to the said transporter.”

However, this ruling also comes with a rider. It says that a transporter will not be eligible to use any of the GSTINs if he/she has already got a unique common enrolment number(UEN).

The transporters are required to submit the final report after the e-Way Bill is generated. They will be given an extended time of up to three days to file the final report, according to the new rules.

Why did the government take this step?
A transporter who had businesses in multiple states had to generate e Way Bills by logging in with the respective GSTINs in various states. This was, to say the least, an arduous task. So, the government revised the rule which made it possible for transporters to use the UEN for conducting their business all over the country.

According to Ramaratnam Muralidharan, Senior Director at Deloitte India, this amendment will save a lot of time and effort as transporters will be able to generate the Electronic Way Bill for customers across India through a central team and can also do away with multiple registrations at the e-Way Bill portal.

He also said,

“the transporter would now be able to effectively manage other e-way bill compliances such as assignment of e-way bills to other transporters, uploading details of detention of vehicles, etc., under a single login ID at the portal.”

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