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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