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Penalties and Consequences for Non-Compliance with e-Way Bill Provisions

Eway Bill Non Compliance

As per the GST ACT, it is mandatory to carry the copy of the invoice and e-way bill as the field officer can inspect the same while the movement of goods. As most of the check posts are removed after the implication of GST e-way bill, the consignment can be verified by the mobile patrolling squad anywhere and at any point of time on the road.

If the transporter does not carry a copy of e-way or e-way bill number either in physical form or RFID embedded mapped form that shall be contemplated as non-compliance of GST Act. Along with e-way bill or EWB number, the person-in-charge shall also carry the invoice, delivery challan or bill of the invoice as the case may be.

Penalties for e-way bill non-compliance

For not complying with the GST Act, the business not only faces the monetary penalty but also non-monetary penalty as well. In October 2017, as cited by the government these penalties have been levied on the businesses so to tackle the tax evasion problem and to improve the revenue structure in India.

Monetary penalty

When there is a movement of goods whose value exceeds the amount of Rs. rupees 50,000, consignee, consignor or the transporter whichever the case may be has to generate e-way bills. The same documents shall be carried on the vehicle on which the consignment is moving. If the transporter fails to show the required documents to the designated officer then the amount of penalty is INR 10,000 or the amount of tax evaded; whichever is higher.

Non-monetary penalty

In case the person-in-charge fails to exhibit the GST e-way bill and invoice to the field office then the vehicle can be detained or seized by the designated officer. However, on the payment of the tax amount seized goods can be released by the taxpayer.

The concerned officer has the authority to confiscate the goods as well as the vehicle in case the taxpayer fails to comply with policies as mentioned in the GST Act. As per the rules if the taxpayer does not pay the imposed tax within seven days from the date of detainment or seizure.

Consequences for not complying with the e-way bill provisions

•  First and foremost important consequences for not complying with EWB provision is that supply chain will get obstructed, other business might have to suffer due to this disruption in the movement of goods as the goods will not be delivered within time.

•  The goodwill of the company in the market can be hampered if there is any legal action taken in the court of law. This will directly affect business revenue.

•  In case, if there is any legal proceeding carried out by the tax authorities there can be considered the loss in revenues or profits of the business.

•  In case there is any litigation carried out by the proper authorities there will be the loss of time. This can affect the day to day activities and also the efficiency of the business.

Masters India, an approved GST Suvidha Provider can help you in complying with all the GST and e-way bill related provisions in a click.

Know more about e-way bills.