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Consequences of non-generation of e-way bill up on no interception by tax authorities

Yog Raj (Accountant) (155 Points)

17 June 2018

What are the consequences if a registered person does not generate e-way bill and there is no interception by tax authorities in the way and goods have reached at desination? What will be penalty to seller or buyer if any under the provisions of the GST Act? The buyer may be registered or un-registered.

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4 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 17 June 2018

No , no penalty till date, in future on assesment the official can ask for eway bill for the same

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CA S Praveen Kumar Reddy (Chartered Accountant) (2195 Points)
Replied 17 June 2018

U will liable for penalty

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 17 June 2018

As of now there is no mechanism with official to check whether EWAY was generated or not

Vinod Babu (24191 Points)
Replied 17 June 2018

No penalty will arise because the goods are already reached the destination.

Penalty arises at time of non generation of eway bill.authorized officers may be instructed to intercept any vehicle at certain check posts for the verification of necessary documents. Additionally, a physical verification of the vehicle may be carried out on receiving specific inputs regarding tax evasion.
Consequences of not carrying Eway bill

The consequences of not generating & carrying the EWay bill can result in both monetary and non-monetary losses to the taxpayer.

Goods being moved in the contravention of Law are liable for:

Monetary Penalty

Moving goods without the cover of an invoice and Eway bill constitutes an offence and attracts a penalty of Rs.10,000 or the tax sought to be evaded (whichever is greater).

Hence, the bare minimum penalty that is levied for not complying the rules is Rs. 10,000.

Detention and Seizure

The vehicle that is found to be transporting the goods without an Eway bill can be detained or seized and would be released only on payment of appropriate tax and penalty as specified by the officer. Under this, there could be two situations:

If the owner wishes to pay the penalty, he must pay 100% of the tax payable.

If not, the penalty will be equal to 50% of the value of goods.

Apart from the legal consequences mentioned above, it is also important to note that the vehicle, as well as the goods of the taxpayer, can be detained. This would mean that the taxpayer’s supply chain would get affected due to the long delays at the check posts.

Therefore, Embarrassing and unproductive situations like these can be avoided by simply complying the rules