Accept/Reject Material without E-Way Bill, Goods and Services Tax - GST

[Shankar Nayakar]

Sir,

Now E-way bill is mandatory for Gujarat.

Suppose vendor sent material exceeding rs. 50,000, but he did not create and provide E-Way Biil.

In this scenario what should we do ?

can we accept the material with out E-Way bill or reject ?

Posts / Replies

[Praveen Nair]

Dear Shankar,

• Moving goods without the cover of an invoice and E-way bill constitutes an offence and attracts a penalty of ₹ 10,000 or the tax sought to be evaded (whichever is greater). Hence, the bare minimum penalty that is levied for not complying the rules is ₹ 10,000.

• The vehicle that is found to be transporting the goods without an E-way bill can be detained or seized and would be released only on payment of appropriate tax and penalty as specified by the officer. If the goods are so urgent then the consignor has to pull his kitty to release the goods.

In the scenario provided when the goods are confiscated at Road / Movement / Transfer the levy & consequences for non-compliance is high.

There are chances, which currently is not clear, at the time of audit if the GST office may call for E-way bills against each Tax Invoice or possibility of Online pooling of data by matching E-way & Tax Invoice, may result in Registered person, the receiver of goods, to present E-way bill copy / details.

- If the vendor is Unregistered, the Consignee / receiver is also responsible for generation of the E-way Bill.

I think being your vendor he should have intimated at the time of sending goods. Here the Transporter is also at fault not generating the E-Way bill creating unnecessary issue for the company.

A well designed process by the Purchase team to make E-Way bill compulsory against every purchase should bring control.

Further our Experts may throw light on their findings...

[YAGAY AND SUN]

Accepting or Sending material beyond the threshold limit with e-way bill will put you in trouble.