An e-way bill is an electronically generated document which is required to be produced while moving goods worth Rs.50,000. Each consignment will have a different e-way bill number (EBN), and its validity is determined based on the travel distance. Authorised officers can stop vehicles to verify important documents at specific checkpoints to ensure e-way bill rules are followed. It is compulsory to create an e-way bill and take it while transporting goods valued at over Rs.50,000 across states; otherwise, the results could be unfavourable. In this article, we’ll explore the consequences of failure in e-way bill generation or any mistakes in the e-way bill.
What are the consequences of non-generation of e-Way bill
Not generating and not carrying the e-way bill can lead to penalties, encompassing both financial and non-financial consequences for the taxpayer:
Transporting goods without an e-way bill and invoice is illegal. It is punishable by a fine of Rs.10,000 or the amount of tax that was attempted to be avoided, whichever is higher. Therefore, there is a minimum penalty of Rs.10,000 for breaking the guidelines.
A vehicle found transporting goods without an e-way bill can be detained or seized. It can only be released upon payment of the appropriate tax and penalty as specified by the officer. Under this, there could be two situations:
Penalty on any mistake in the e-Way bill
The Government of India has made it clear that if a supplier of goods or a transporter carrying goods with registered GST and GST e-way bill with minor mistakes, the enforcement officer shall enforce a penalty of Rs.1000 to the registered business and/or to the transporter. Thus, the supplier or the carrier needs to pay a penalty of Rs.1,000 if the e-way bill has minor errors during transit.
Failing to generate e-way bills may result in heavy fines, confiscation, and other legal repercussions under the CGST Act. To prevent fines and legal action, taxpayers and carriers must ensure they comply with the e-way bill creation requirements.
What is the penalty for failing to generate e-way bills?
Transporting products without the cover of an invoice or e-way bill is illegal. It carries a penalty of Rs.10,000 or the amount of tax that was attempted to be avoided, whichever is higher.
What is included in the Rs.50,000 invoice value when determining whether an e-way bill applies?
For application calculations, the invoice value comprises the taxable and GST amounts.
Is there a delay in amending the e-way bill’s Parts A and B?
To update Part B of the e-way bill, a unique number valid for 72 hours must be produced upon providing Part A of the e-way bill.
How often may the e-way bill’s Part B be updated?
If it is changed within the validity period, there is no restriction on how many times it can be updated. The vehicle information should always correspond with the vehicle moving the cargo.
What happens if the e-way bill expires?
There is a choice to prolong the validity period once the e-way bill expires. Nevertheless, you can only request an extension eight hours before or following its expiration.
How can an error in the e-way bill and invoice be fixed?
The e-way bill cannot be updated or corrected if there is an error, inaccurate input, or mistake. The way bill must be cancelled to create a new one with the updated information.
What happens if incorrect e-way bill is created?
There is no penalty if there is an error, erroneous entry, or mistake in the e-way bill; it cannot be altered or corrected. The e-way bill must be cancelled to create a new one with the updated information.