E-Way Bill Penalty

Penalty for E-Way Bill Non-Compliance

Guides » GST Guides & Articles » Penalty for E-Way Bill Non-Compliance

Penalty for E-Way Bill Non-Compliance

An e-way bill is required for the movement of goods worth more than Rs 50,000. When goods are transported for less than 10 km within a state, the supplier or the transporter need not furnish details on the GST portal or generate e-way bill. The eway bill portal is not just used by the consigner and consignee, but also by the transporters and largely the enforcers. The Commissioner or an equivalent officer representing the government plays the role of enforcing all regulations pertaining to e-way bill. The enforcement is a crucial part in eway bill, as it aids in identifying the defaulters and penalizing them according to the government norms.

E-Way Bill Enforcement

The e-way bill mechanism has been introduced in the GST from 1st April 2018 to plug tax evasion loopholes. Tax evasion was one of the reasons cited by the government for the fall in revenue collection in October 2017. Thus the GST Council has empowered GST Officers to implement and enforce all regulations relating to e-way bill for transporting goods and to intercept any conveyance to verify the e-way bill. Few points to be remembered in the enforcement of the e-way bill are as follows:

  • The physical verification of conveyances may be carried out by the proper officer as authorised by the Commissioner or any officer empowered by himself.
  • Physical verification of the specific conveyance should be carried out only on the basis of trusted information on evasion of Tax.
  • Any physical verification of the conveyance should be carried out after obtaining permission from the Commissioner.
  • A summary report of every inspection of goods in transit should be recorded online by the proper officer in Part A of Form GST EWB (eWay Bill) – 03 within 24 Hours of the inspection.
  • The Final report in Part B of Form GST EWB-03 should be recorded within 3 Days of such inspection.
  • Once a physical verification of the goods is carried out within or outside the state, no other verification inspection shall be carried out anywhere unless a specific information relating to evasion of tax is made available subsequently.

Role of Transporter

During the inspection of the goods the transporter should carry out the following steps to avoid delays:

  • Carry proper GST invoice or Delivery Challan, as required.
  • Carry an E-way bill.
  • When the vehicle is being intercepted and detained for a period exceeding 30 Minutes, the transporter may upload the details in FORM GST EWB-04 on the eWay bill portal. This should be carried out by the transporter to reduce the risks of late transportation of the consignment.
  • The common portal for the e-way bill generation, update and cancellation is: http://ewaybill.nic.in .

E-way Bill Penalties

Defaulters of the GST e-way rules are penalised according to the Indian Government norms. The penalties are as follows:

  • As per Section 122 of the CGST Act, 2017 – A taxable person who transports any taxable goods without the cover of specified documents (eWay bill is one of the specified document) would be liable to a penalty of Rs.10,000/- or the tax sought to be evaded whichever is greater.
  • Any goods not listed in a GST eway bill that is found being transported or stored will be liable to detention or seizure as per the Section 129 of CGST Act, 2017.

Want to Consult a GST Expert?

IndiaFilings provides the entire range of services required to register for GST and maintain GST compliance. We can help you obtain GST registration, generate GST invoices and file GST returns. Get in touch with our GST Experts for more information.

Income Tax eFiling

We have made the Income Tax eFiling, simple and easy. File your income tax return online with the dedicated Tax Experts support from IndiaFilings.

Authorised eReturn Intermediary

IndiaFilings.com (ERI ID: ERIA100945) is an Income Tax Department authorised eReturn Intermediary.

Comments (1)


Apr 25, 2019 at 3:15 PM

ordered a full truck load material to ‘XYZ’ company. they dispatched the truck with all documentation. distance was 1885 km but by mistake in e-way bill accountant entered 3000 km the GST officials stopped the truck and are asking for twice the bill amount to be submitted as penalty. it is a human mistake and can happen with anyone. kindly suggest what needs to be done and guide me with proper ruling and act. expecting a prompt response.


Leave a comment