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Penalty for Eway Bill

prithvi (Manager) (71 Points)

11 March 2021

In case of Composition dealer who not have eway bill is penalized at checkpost by GST officers. What tax & Penalty to be charged ? Is it as per normal tax rate or Composition fees. (As penalty is 100% of Tax amount)

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 14 March 2021

Yes it's treated as without Invoice,hence penalty will be imposed as per Section 129(1) of. GST it's on payment of lower of following amounts :
1. 2% of value of Goods or
2. Rs 25000/- (Total 50000/- for CGS & SGST)

Note : As he is the composition dealer & in term of rule 49 required to issue bill of supply hence no tax is charged thereon so shall be considered under Exempted goods supply & penalty shall be imposed as accordingly.