What is CESS Non Advol?

what is CESS non advol?
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What is CESS Non-Advol?

CESS Non-Advol Amount & Other Charges

⊗ For most of us, “CESS Non-Advol” was/is still a new term introduced by e way bill portal. But it is widely used by all the taxpayers and/or transporters who generate e waybill on the e way bill portal for transportation of goods post 1st October 2018.

⊗ Earlier in most of the cases, it was the transporter who used to make the documents for transportation. But after the implementation of e way bill and reverse charge mechanism under the GST regime, the onus to prepare the document for transportation (e waybill) has shifted on the person/taxpayer availing the transportation service. So, any change/enhancement in e way bill not only affects the transporter but most of the taxpayers availing the transportation service.

⊗ The additional fields have been added for the “CESS Non-Advol Amount” & “Others” have been introduced with effect from 1st October 2018.

⊗ “Cess non-advol amount” means Non-advolerum which is fixed in terms of quantity and not based on a certain percentage of value. Such cess will b shown in this column. 

⊗ The amount for CESS Non-Advol will not auto-populate as it depends upon the quantity and unit, and it is not standard/fixed like the rate of taxes are.

⊗ And for “Other Charges” is the amount that reflects/is written in the invoice as any other charges (if applied) or any discount (if provided).

⊗ It is the amount that is to be entered manually to equate/match the ‘Total Invoice Value’ with the “Actual Invoice Value” for which the e-waybill is being generated.

⊗  The new field has been marked with yellow color in the picture below :

(source: e-way bill portal)

A few enhancements in the generation of the e-way bill on the e way bill portal were done in order to help the taxpayers and/or transporters to generate e waybill easily, quickly and without errors/avoid chances of errors and matching the values in the invoice and e-way bill. Addition of Cess Non Advol amount was one of the enhancements. Click here to read about the enhancements/changes in E-way bill applicable from 1st October 2018

Let’s discuss in detail the standard rate enhancement:

With the new version of E-way bill, all the standard rate of tax i.e. CGST rate (%), SGST rate (%), IGST rate (%) and Cess (%) would auto-populate when you select the HSN code from the drop-down menu. Once the taxpayer selects the applicable tax rate (%), the amount of tax would auto-populate for all the applicable fields from CGST, SGST, IGST and Cess as applicable. A taxpayer has to select the applicable tax rate slab (in %) from the drop-down and based on this, the system calculates and auto-populates the CGST, SGST, IGST & CESS amount etc.

(source: e-way bill portal)

Note: The amount for CESS Non-Advol will not auto-populate as it depends upon the quantity and unit, it needs to be manually entered.

What happens if there is a difference in actual invoice value compared to invoice value on the EWB portal?

E waybill system does not allow you to proceed even if there is a difference/variation of more than Rs. 2/- in total invoice value on e waybill portal( sum of assessable value, tax value, and other values) compared to the actual invoice value. This also makes it mandatory to add or less the difference based on non-advol cess, other charges, or discounts given in the invoice in the  “Cess Non-Advol” and “Other Charges” fields.

Conclusion

In my view, the sole purpose of adding the filed “CESS Non-Advol” and “Other charges” fields in the e waybill system is to discourage the practice adopted by taxpayers of evading taxes in the name of other charges or discounts given. The government wants everything to come on the account and wants to leave no scope for evasion of tax.

 

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About CA Ankita Khetan 161 Articles
Ankita is a Chartered Accountant in practice and holds a Diploma in IFRS (from ACCA, UK). She is also a Commerce PG and Certified Independent Director (from IICA). She holds a certification in Forex and Treasury Management. Her area of expertise is GST and Income tax. She is passionate about reading, writing, and sharing knowledge on areas related to finance and taxation.

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