Last Updated on 21/02/2022 by Deepak Singla
Moving goods is not how it seems. If you are transporting something or planning on doing so, this piece is for you – no doubt. Here we can talk about the Eway Bill, what happens if you fail to produce it during a shipment, and so much more. If you aren’t aware of what an Eway Bill is – don’t worry about that too – we have got you covered. Full-Form of E-Way Bill The Electronic Way Bill (E-Way Bill) is a yielding mechanism in which the person moving goods uploads the appropriate information and data before the start of goods and generates an e-way bill on the GST portal using a digital interface or software.
What is an E-way Bill?
An e-way bill is a receipt or a report provided by a carrier that provides specifications and instructions regarding the dispatch of a consignment of goods. The highlights include the consignor’s name, the consignee’s name, the site of origin of the cargo, its purpose, and its direction. On April 1, 2018, the Eway Bill System enabling the inter-state transfer of commodities across the country was launched. E-Way Bills are necessary for inter-state transportation of products with a consignment value greater than Rs.50,000/- in a motorized carrier.
Now, you might be thinking – Is it really that crucial? If you are looking for a straight and honest answer – yes, it is!
Ever wondered what would happen if your shipment does not have an E-way Bill? Please don’t wonder – the answer is right here.
What Happens if the Eway Bill is not Carried Along?
Monetary: In this situation, if a consignment is moved without an invoice and an e-way bill, the transporter will be fined 10,000 INR or the amount of tax evaded, whichever is greater.
Seizure: When a taxpayer fails to comply with the policies outlined, his or her car and commodities may be held and taken without warning. Both, however, can be released provided the owner pays the full tax or half the price of the products.
But, you do not always have to worry about the Eway Bill. There are situations when you will not need one.
Cases When you Do Not Need an Eway Bill
Some exempted products do not really need an Eway Bill – they are here:
- The mode of transportation is a non-motor vehicle or mode of travel.
- Goods transported from a Customs port, airport, air cargo complex, or land customs service to an Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs authorities.
- Goods moved under Customs administration or under a customs permission Goods transferred under Customs Bond from ICD to Customs port or from one customs station to another.
- Cargo is transported to or from Nepal or Bhutan in transit.
- Transfer of products by a defense entity under the Ministry of Defense acting as a consignor or consignee.
- Cargo ships that are empty are being brought in.
- Consignor transporting products to or from business and a weighbridge for weighing at a distance of 20 kilometers – followed by a Delivery challan.
- Goods are transported by railway when the consignor is the Central Government, a state government, or a local government.
- Goods specifically designated as exempt from E-Way bill restrictions in the applicable State/Union territory GST Rules.
- Transport of specifically designated goods- Attaches a list of exempt supplies of goods, an annexure to Rule 138(14), goods commanded as no supply as per Schedule III, and a schedule to Central Tax Rate notifications.
Other than this, there are penalties if you travel without valid documents or without paying taxes.
What Happens if you Ship Without Paying Tax?
If the supplier or transporter fails to pay taxes and transports goods without proper documentation, the individual in question must pay the corresponding tax and a penalty equal to 100% of the entire tax payable on the value of the products moved.
What Happens if you Transport without Documents?
If a transporter or a supplier transports or stores any goods without any valid documents related to the goods during transit in violation of the GST Act or any rules made thereunder, and the supplier uses the same goods or the goods stored in transit – the concerned officers may detain or seize the goods.
Officers must release seized or detained commodities or goods that have been stored if the supplier or transporter meets the following conditions. The person must pay the penalty in accordance with Section 129(1) clauses (a) and (b) of the CGST Act.
You can skip all of these troubles, and all you have to do would be to generate the Eway bill, and even if you do not know it – stay calm and just follow the process mentioned below.
Eway Bill Generation
Any taxpayer who needs a waybill download for a consignment must first have access to the Government portal. You can go to the official page to learn more about generational measures.
The validity of an e-way bill can be extended either before or after its expiry term of four hours. So, in total, the proprietor of an e-way bill has eight hours to extend the expiry term. If the holder or taxpayer does not prolong or improve its efficacy, he will be penalised.
Here there are the legal issues mentioned, but you also have to remember that the vehicle and the goods could possibly be seized. You do not want to take a chance when it comes to Eway Bills.