Non-generation of part B, Goods and Services Tax - GST

[Vikram shah]

We are based in UP and purchase scaffolding material from Ludhiana in Punjab. Last week, our supplier generated E-invoice and part A of e-way bill but did not generate part B, assuming that the transporter will generate it. The transporter also did not generate it and the goods were intercepted around 300 kms in transit (in UP) and penalty of 200% was imposed. The supplier paid the penalty and released the goods. My question is

- what appeal options does he have and will appeal be heard online or physical

- is the case strong as tax invoice was generated and we had paid the full amount including GST. So there was no intention of tax evasion

- how long will the appeal process take? is there any time-barring?

- The penalty has been paid under IGST? can that be set off against the CGST/SGST that is payable on the goods when monthly GST return has to be filed?

Posts / Replies

[KASTURI SETHI]

Q. what appeal options does he have and will appeal be heard online or physical ?

Ans. Appeal can be filed online. Also submit physical copy of the appeal to the Appellate Authority.

Q. Is the case strong as tax invoice was generated and we had paid the full amount including GST ? So there was no intention of tax evasion.

Ans. Whether the case is strong or weak ? Nothing can be said. If you can prove (with documentary/books of account etc. ) that you acted in a bona fide manner, the case can tilt in your favour.

Q. How long will the appeal process take? Is there any time-barring ?

Ans. Such like cases are decided at the earliest. Yes appeal is to filed within stipulated period. What is the date of Order for imposition of penalty ?

-Q.The penalty has been paid under IGST? can that be set off against the CGST/SGST that is payable on the goods when monthly GST return has to be filed ?

Ans. Any penalty imposed and paid cannot be set off against tax.

[Ganeshan Kalyani]

E invoice generated means the autopopulation happens in GSTR-1 and you will pay the tax thru 3B. So there is no intention of evasion of tax on your part. This is the ground on which you can justify your case. Not updating Part B is a procedural lapse but Officer is bound to levy penalty. In appeal the case can go in your favour.

[Padmanathan Kollengode]

- what appeal options does he have and will appeal be heard online or physical

He has to file appeal before first appellate authority online in GSTN portal. A hard copy of the appeal may be sent to appellate officer for numbering the appeal in their records.

- is the case strong as tax invoice was generated and we had paid the full amount including GST. So there was no intention of tax evasion

In my personal opinion, for invoking section 129, intention to evade tax is not necessery. Section 129 can be invoked when there is a contravention of any provision of Act or the rule during movement of goods. You may make an informed decision whether to appeal or not depending on the demanded penalty, cost of appeal and so on.

- how long will the appeal process take? is there any time-barring?

There is no fixed time limit for completing the appeal. it will depend on office to office based on pending cases etc.

- The penalty has been paid under IGST? can that be set off against the CGST/SGST that is payable on the goods when monthly GST return has to be filed?

Penalty paid cannot be claimed as input tax. hence, the question of setting it off against CGST/SGST payable in monthly return does not arise at all.