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Tax rate error in e-way bill

02 December 2023

on Nov 25 2023 two e-way bills generated without selecting tax rates i.e e-way bill shows zero tax by mistake. in gstr 1 aforesaid invoices are reported. is there any way out to avoid penalty if in future if any notice is issued

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Money Money (413 Points)
Replied 04 December 2023

If you have generated e-way bills without selecting tax rates and showing zero tax by mistake, you may face penalty for non-compliance with e-way bill provisions. As per Section 122 (1) (xiv) of CGST Act,2017, a taxable person who transports any taxable goods without the cover of specified documents (e-waybill is one of the specified document) shall be liable to a penalty of ₹ 10,000/- or the amount of tax sought to be evaded (wherever applicable) whichever is greater1. However, if the e-way bill contains minor mistakes, such as spelling errors in the name or address of the consignor or consignee, or error in the pin code but the address is correct, then the penalty may be reduced to Rs. 1000/- under Section 125 of CGST Act234. Therefore, it depends on the nature and extent of the mistake in the e-way bill, and the discretion of the enforcement officer, whether you will be penalized or not. To avoid penalty, you should rectify the mistake in the e-way bill in the next period (month/quarter) by using the offline tool to modify, add, or delete the invoice details uploaded earlier1. You should also ensure that the tax rates and amounts are correctly reported in the GSTR-1 and GSTR-3B returns.

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