If you want to transport goods worth ₹50,000 or above from one state to another, it is mandatory for you to generate an eway bill and carry it at the time of transportation. Failure to do so can have serious consequences. This article will tell you about what could happen if you do not generate an E way bill for your cargo or if minor errors are spotted in them.
If you fail to get an E way bill issued for your consignment, you can be penalised as per the norms that have been laid out by the government for it.
Section 122 of the CGST Act, 2017 states that if a taxable person attempts to transport taxable goods without the relevant documents, including the Eway bill, the monetary penalty will amount to ₹10,000 or the tax that the transporter was attempting to evade, whichever is greater.
If you are found transporting goods that have not been mentioned in your Eway bill, they can either be seized or detained under Section 129 of the CGST act of 2017.
If you are found transporting goods with the cover of an expired E way bill, those goods will be seized and/or detained by the relevant authorities. They will only be released after you pay the penalties as per Section 129(1) clause (a) and clause (b) of the CGST Act of 2017.
If you are transporting goods without paying the applicable tax on them and without any valid documents, the penalty for an expired E way bill will be 100% of the payable tax amount. In the case of exempted goods, you will need to pay 2% of the total cargo value or ₹25,000, whichever is lesser.
If you are found transporting goods that you have paid the tax for but do not have valid documents for it, you will be liable to pay 50% of the cargo value. If you are found doing so while carrying exempted goods, you will have to pay either 5% of the total value of goods or ₹25,000, whichever is lesser.
If there are minor mistakes in your Eway bill, you or the registered business will be fined ₹1,000. These penalties are as per the official circular that was circulated by the government in 2018. Note that you will only be charged ₹1,000 only if you have already paid the applicable taxes. These penalties have been mentioned under Section 129 of the CGST act of 2017 as well.
The errors that will attract the penalty for mistake in E way bill mentioned above are:
Spelling mistakes in the name of the consignor/consignee.
Error in the relevant pin codes entered on the bill.
Error in the address of the consignor/consignee but the two locations are near each other. Note that other details should be true and accurate as per your knowledge.
Mistakes in one or two digits of the document number.
Errors in the last 4 digits of the HSN code. Errors in the vehicle number on any of the relevant documents. If the error extends to only up to 2 digits, no penalty is charged.
Note that if any of the above mentioned mistakes are identified, ₹500 will be charged as per the Section 125 of the CGST act and another ₹500 will be charged as per the relevant section of the state’s GST act. The owner of the goods will have to pay the fine along with the Form GST DRC-07.
No. If the vehicle has all the authentic documents, goods invoice and e-way bill, the authorities cannot seize the vehicle unless there's evidence that raises suspicion.
Once the Part A of the e-way bill has been successfully submitted, a unique number that's valid for 72 hours would be generated. Using that number, Part B form can be filled.
The minimum fine for failing to generate any part of the e way bill is ₹10,000. Either that or the transporter/owner will have to pay the total amount of tax that he/she is suspected of evading. The fined individual will have to pay the higher of the two amounts.