Non preparetion of E way bill, Goods and Services Tax - GST

[Dinesh Shah]

We have exported goods put of India. However, being export transactions we have not prepared E way bill. Now at the time of GST audit, the department has raised objection on the same. What is the maximum penalty we are liable to pay??

Please note goods are not being intercepted and have rached the destination.

Posts / Replies

[Ganeshan Kalyani]

In my view general penalty of Rs.50,000/-

[Shilpi Jain]

The requirement of e-way bill is for the movement of goods. Ideally they should not be able to levy any penalty more so if it is an export transaction and there being no evasion of tax.

The general penalty provision is applicable only if no other penalty is prescribed in the law. However in the present case, penalty is mentioned for this error in Section 129 which was not levied. Thereby, even the general penalty should not be applicable.

[Shilpi Jain]

The penalty u/s 129 is leviable only when intercepted at the time of transport.

[Amit Agrawal]

General penalty up-to Rs. 25,000/- u/s 20 (xxi) of the IGST Act, 2017 (read with Section 125 of the CGST Act, 2017) can be levied in given situation.

As concerned supply is covered under IGST Act, no penalty under CGST ort SGST Act can be levied.

Moreover, quantum of penalty to be levied is "up-to Rs. 25,000/-" and same is not mandatory. Officer can reduce the amount or drop it al-together.

One can rely on Section 126 (1) of the CGST Act, 2017 read with 'Explanation (a)' thereunder to explain to the officer that no penalty should be levied in given circumstances considering it was minor breach with zero tax-amount involved (this is assuming that concerned goods were exported without payment of any taxes under LUT).

If concerned goods were exported with payment of any taxes and you already got refund there-against, you can try very same explanation to seek no penalty u/s 126 (1). And if officer does not agree, you may seek penalty of some minor amount (say Rs. 500/- or Rs. 1,000/-) as allowed u/s 126 (2).

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.