Delivery challan, Goods and Services Tax - GST

[vignesh VSACCOUNTOPRIVATELIMITED]

Sir.Good were moved for job work under Delivery challan "clearly mentioning a statement - For only Job Work" the vehicle was intercepted the officers found no taxable value and tax in the the DC. and invoked section 129 is imposing penalty under the section correct? can we defend the same?

Posts / Replies

[Padmanathan Kollengode]

As per rule 55, taxable value is required to be mentioned, and tax rate and amount is required only where there is a supply. So, to that extent there may be contravention. Only recourse would be file appeal.

[KASTURI SETHI]

It is only a procedural lapse. The penalty imposed is worth contesting.

[Ganeshan Kalyani]

If notice issued then you will have to pay 200% of the tax as penalty. You can then file an appeal and justify your case. There is no revenue loss to the govt.

[DR.MARIAPPAN GOVINDARAJAN]

In appeal you can defend.

[vignesh VSACCOUNTOPRIVATELIMITED]

Thank you all for ur timely reply and inputs

[Amit Agrawal]

Some 'food for thought' while drafting appeal in given situation:

A. 'Taxable value' comes into picture only when supply is involved and subject transport movement of goods was not for supply of those goods. 'Taxable value' cannot be equated with 'Value of Goods'.

A1. Delivery challan u/s 55 is for 'Transportation of goods without issue of invoice' and same can be issued for the purposes of-

(a) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known,

(b) transportation of goods for job work,

(c) transportation of goods for reasons other than by way of supply, or

(d) such other supplies as may be notified by the Board,

A2. 'Taxable value' and 'Tax-Rate' needs to be disclosed on delivery-challan u/s 55 only when transportation of goods is for clause (a) or (d) from the list given in Para A1 above.

A3. Requirement to disclose 'tax rate and tax amount – central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is for supply to the consignee' on the delivery-challan u/r 55 can not be read to mean that one should should disclose 'taxable value' when there was no underlying supply of goods was involved and said delivery-challan specifically mentions the same (i.e. For only Job Work)

A4. FORM GST EWB-01 specifically uses the term 'Value of goods' to be disclosed. This also means that differentiation between 'Taxable Value' and 'Value of goods' is duly understood and acknowledged even by Board / Govt.

A4.1 In this context, it is worth noting that E-way bill is COMMON requirement to be furnished by every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees-

(i) in relation to a supply; or

(ii) for reasons other than supply; or

(iii) due to inward supply from an unregistered person under Rule 198(1) of the CGST Rules, 2017

B. Please also let me know if E-way was furnished u/s 138. And if yes, have you declared value of goods therein? If E-way was not furnished u/s 138, kindly give me reasons therefor.

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

[vignesh VSACCOUNTOPRIVATELIMITED]

Thank u all for your inputs. Yes sir Eway Bill was generated with Value of Goods.

[Padmanathan Kollengode]

Ld friend Amit Ji,

After perusing your post above, I stand corrected to the extent that 'taxable' value must be mentioned in DC. I fully agree that 'taxable value' will come into picture only when a supply is involved. Nevertheless, I still hold the view that value of goods has to be mentioned in DC and e-way bill.

Mr Vignesh has also posted that value has been declared in e-way bill. Therefore, it appears to be only procedural error, if at all any, in the DC and the case would be defendable in appeal.