The consequences of non-issuance of E-Way Bill

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Consequences of not issuing e-way bill

Consequences of not issuing e way bill
The consequences of not
generating & carrying the E-Way bill can result in both monetary and
non monetary penalty to the taxpayer. Non-compliance with e-way bill is costly affair.

1.                 
Monetary penalty

Transporting goods without
an invoice and E-way bill constitutes an offence and attracts a penalty
higher of:
  • Rs.10,000 or
  • The tax sought to be
    evaded (i.e. tax to be hide)
In simple words, penalty
for non-generating e-way bill is Rs 10,000. However, the given penalty can also be
extended to Rs 25,000 if the registered person is caught acquiring
possession of, or in any way concerns himself in transporting, removing,
depositing, keeping, concealing, supplying, or purchasing or in any other
manner deals with any goods, which are liable to confiscation.

2.                 
Detention and Seizure (Non-compliance with e-way bill)

The vehicle transporting
the taxable or exempt goods without an E-way bill can be detained or
seized and would be released only on payment of appropriate tax and penalty
as specified by the officer:

Particulars
Taxable Goods in
vehicle
Exempt Goods in
vehicle
Owner of goods accepts responsibility and comes forward for
payment
Tax payable on such goods and
100% of tax payable on such goods as penalty  
Lower of 2% of the
  • value of goods or
  • Rs. 25,000/-

Owner of goods does not come forward for payment
Tax payable on such goods and
50% of value of goods minus tax paid thereon
Lower of 5% of the
  • value of goods or
  • Rs. 25,000/-

 3.            Penalty on minor mistakes in
E-Way Bill

Following situations will
be considered as minor mistakes in E-way bill:

(a) Spelling mistake in the name of
consignor / consignee but GSTN No. wherever applicable, is correct.)
(b) Error in PIN Code but address of
the consignor/ consignee is correct subject to the condition that the error in
PIN Code should not have the effect of increasing the validity period of e way
bill.
(c) Error in the address of the
consignee to the extent that locality and other details of the consignee are
correct.
(d) Error in one or two digits of the
document numbers mentioned in the e way bill.
(e) Error in the 4 or 6 digit level
of HSN where first 2 digits of HSN are correct and the rate of tax mentioned is
correct.
(f) Error in the one or two digit /
characters of the vehicle number.

It is pertinent to note
that in all the above cases, person in charge of vehicle should be in
possession of e way bill / tax invoice or delivery challan along with the
consignment of goods.

Penalty of Rs 500/-
each as CGST & SGST (Total Rs 1000/-) under sec 125 of CGST Act will be
imposed for such minor mistakes.
(Circular No.
64/38/2018-GST dt 14.09.2018)

Reference:
Section 68 of CGST Act
Section 122(1) (xiv) of CGST
Act
Section 125 of CGST Act
Section 129 of the CGST Act
Rule 138 of E-way bill

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