Understanding the E-Way Bill and Penalties under GST

What is an E-Way Bill?
An E-Way Bill (Electronic Way Bill) is a document that is required under Section 68 of CGST Act (Read with Rule 138 of CGST Rules, 2017) for the movement of goods worth more than a specific value in India. It is a part of the Goods and Services Tax (GST) system

When is an E-Way Bill Required?
· The E-Way Bill must be generated when goods are transported
· Interstate (across state borders).
· Intrastate (within the same state) if the goods’ value exceeds Rs 50,000.
· In certain cases, even if the value is below Rs 50,000, depending on state-specific rules.
· The E-Way Bill should be generated by the consignor, consignee, or transporter based on the situation(except those exempted under the Notifications or rule).

Who needs to get registered on the E-waybill portal?
· All the registered persons who need to generate e-way bill under GST are required to register on the e-way bill portal
· There may be some transporters, who are not registered under the Goods and Services Tax Act, but such transporters may cause movement of goods for their clients. They need to enroll themselves on the e-way bill portal to get 15 digit Unique Transporter Id to generate E-Way Bill.

How to Generate an E-Way Bill?
1. Visit the E-Way Bill Portal: ewaybillgst.gov.in
2. Log in using your GSTIN or unique user ID.
3. Select “Generate E-Way Bill” and fill in the required details like transport details, item description, etc.
4. Once the form is completed, an E-Way Bill Number (EBN) is generated

Who needs to carry the E-waybill?
The person in charge of a conveyance shall carry the invoice or bill of supply or delivery challan or bill of entry as the case may be and a copy of the e-way bill or its number generated from the common portal in electronic form. Please refer relevant rules for details.

Whether e-way bill is required, if the goods are being purchased and moved by the consumer to his destination himself?
Yes. As per the e-way bill rules, e-way bill is required to be carried along with the goods at the time of transportation, if the value is more than Rs. 50,000/-.
Under this circumstance, the consumer can get the e-way bill generated from the taxpayer or supplier, based on the bill or invoice issued by him. The consumer can also enrol as citizen and generate the e-way bill himself.

Penalties and Consequences

1. Section 122(1)(i) of the CGST Act:
· Penalty: A penalty of Rs 10,000 or the amount of tax evaded (whichever is higher) will be levied.
· This penalty applies when a person fails to generate an E-Way Bill, even if the goods are being transported, and the requisite conditions under the law are not met.

2. Section 129(1) of the CGST Act:
· Seizure and Detention: If goods are found without an E-Way Bill, they may be seized and detained by the authorities.
· Penalty: The goods can be released only after payment of the applicable penalty equal to 100% of the tax payable on such goods.

3 Section 129(3) of the CGST Act:
· Return of Goods: If the E-Way Bill is not generated, the goods can be returned to the origin without any penalty, but the return must be completed within a reasonable timeframe.

4 Section 122(2) of the CGST Act:
· Additional Penalty for Continued Non-compliance: Failure to comply with the rules could lead to a compounded penalty for each non-compliant act.

5 Clause (ii) of Rule 138(3) of the CGST Rules:
· The goods can only be allowed to move if the proper documents, including the E-Way Bill, are produced when asked for by the tax authorities.

Stay compliant and avoid penalties by ensuring that your E-Way Bill is generated whenever necessary!

This is issued in the interest of public consumption and government revenue.

Issued by-
Office of the Deputy Commissioner of State Taxes
Mokokchung, Nagaland.