Penalty for E-Way Bill and Non-Compliance

As per GST law, all the supplier or transporters must carry a GST e-way bill if the movement of products worth quite Rs.50,000. Any supplier or the transporter can register themselves with the E-Way Bill portal and generate the bill. Nonetheless, the Ministry of Finance (MoF) allows few exemptions like, if the supplier transports goods but 10 km within a state, the concerned individual can avoid carrying a GST E-Way Bill and also avoid furnishing the small print on the GST portal or generate e-way bill. The entity should produce the bill and invoices if intercepted by the designated officers during the movement of products.

The E-Way bill portal isn't just employed by the assignor and assignee, but also by the transporters. The Commissioner or the same officer representing the govt plays the role of enforcing all regulations concerning the E-Way Bill. The enforcement is the crucial part of the e-way bill because it aids in identifying the defaulters and also penalize them consistently with the govt norms. Therefore, not carrying the GST E-Way Bill by the supplier or the transporter shall apply as non-compliance under the provisions of the GST law. This will end in both non-monetary also as monetary losses to the taxpayer because the tax officials shall send notices to the concerned business individuals. Read More

E-Way Bill Enforcement

The E-Way Bill mechanism has been introduced within the GST from 1st April 2018 to plug evasion loopholes. evasion was one among the explanations cited by the govt for the autumn in revenue collection in October 2017. Hence, the GST Council has empowered the GST Officials to implement and enforce all regulations concerning the E-Way Bill regarding the transportation of goods and to intercept any conveyance to verify the E-Way Bill Few points to be remembered within the enforcement of the e-way bill are as follows:

• The physical verification of conveyances could also be administered by the right officer as authorized by the Commissioner or any officer empowered by himself.
• Physical verification of the precise conveyance should be administered only on the idea of trusted information on evasion of Tax.
• Any physical verification of the conveyance should be administered after obtaining permission from the Commissioner.
• A summary report of each inspection of products in transit should be recorded online by the right officer partially A of Form GST EWB (E-Way Bill) – 03 within 24 hours of the inspection.
• The final report partially B of Form GST EWB(E-Way Bill)-03 should be recorded within 3 days of such inspection.
• Once a physical verification of the products is administered within or outside the state, no other verification inspection shall be administered anywhere unless specific information concerning evasion of tax is formed available subsequently.

E-Way Bill Penalties

Defaulters of the GST E-Way Bill rules are penalised consistently with the Indian Government norms. The penalties are as follows:

• As per Section 122 of the CGST Act, 2017 – A taxable one who transports any taxable goods without the duvet of specified documents (the E-Way bill is one among the required document) would be susceptible to a penalty of Rs.10,000/- or the tax sought to be evaded whichever is bigger.
• Any goods unlisted during a GST E-Way bill that's found being transported or stored are going to be susceptible to detention or seizure as per the Section 129 of CGST Act, 2017.

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