Non-compliances of E-way bill

Apr 03, 2018 | Posted by : Natasha | Category : Article
As per Section-122(1)(xiv) of CGST Act if e-way bills, wherever required, are not issued in accordance with the provisions contained in Rule-138 of the CGST Rules, 2017, the same will be considered as contravention of rules.
A taxable person who transport any taxable goods without the cover of specified documents shall be liable to a penalty of Rs.10000/- or tax sought to be evaded whichever is greater.
As per Section-129 of CGST Act, in case any goods are moving without e-way bill or where the details are partially declared, the proper officer has proper authority to detain or seize such conveyance or goods, and good shall be released after the payment of applicable tax or penalty as provided under provision of CGST Act.
Penalty  of seized goods as per CGST Act are following:-

As per Section 129(1)(a) of CGST Act:where the owner of goods comes forward:- Taxable goods – 100% penalty (equal to the amount of tax) will be charged.

Exempted goods –  2% of value of goods or Rs. 25,000, whichever is less.
 As per Section 129(1)(b) of CGST Act: In case owner does not comes forward:- Taxable goods – 50% of the value of goods before tax will be charged as penalty.
Exempted goods :- 5% of value of goods or Rs. 25,000 whichever is less.
As per Section 129 (1)( c) of CGST Act:- Upon furnishing a security equivalent to the amount payable under clause (a) and  clause (b) in such form and manner as may be prescribed.
Provided that no Goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods.
As per Section 129(6) of CGST Act: If a person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty as provided in sub-section (1) within seven daysof such detention or seizure, further proceeding shall be initiated in   accordance with the provisions of Section-130