1. Applicability – When and How?

E-Way was made compulsory for interstate supplies from 01^st April 2018, however for intra state supplies E-Way has been enabled in various states at respective dates. In Maharashtra E-Way bill was applicable from 25^th May 2018, E-Way bill has to be given for inter as well as intra state supplies exceeding Rs 50,000.

2. Who should generate an E-Way bill?

• Registered Person – E-way bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a Registered Person. A Registered person or the transporter may choose to generate and carry e-way bill even if the value of goods is less than Rs 50,000.
• Unregistered Persons – Unregistered persons are also required to generate e-Way Bill. However, where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier. 
• Transporter – Transporters carrying goods by road, air, rail, etc. also need to generate e-Way Bill if the supplier has not generated an e-Way Bill.Unregistered Transporters will be issued Transporter ID on enrolling on the e-way bill portal after which E-way bills can be generated.

3. What will happen if goods are transported without the cover of Invoice or E-Way bill?

If transport of goods commences without invoice or E-Way bill then penal provisions would be charged. Penalty amounting to Tax payable or Rs 10,000 whichever is more would be payable in case of default.

Example- If a garment dealer transports goods worth Rs 1 Lakh taxable at rate of 28% i.e. Rs 28,000 is tax amount, without cover of invoice or E-Way bill, then penalty will be higher of-

• Rs 10,000 or
• Tax payable on such goods here Rs 28,000, hence penalty here will be Rs28,000.

4. Documents or details required to generate E-way bill?

• Invoice/ Bill of Supply/ Challan related to the consignment of goods
• Transport by road – Transporter ID or Vehicle number
• Transport by rail, air, or ship – Transporter ID, Transport document number, and date on the document

5. What if goods are transported without cover of invoice and E-Way bill and the goods are detained /seized by inspector/Tax officer?

If the tax officer detains such goods then for releasing such goods and conveyance the owner of the goods needs to pay penalty as under-

• When the owner of the goods comes forward to pay penalty and tax amount, penalty will be equal to 100% of tax payable on such goods also the owner needs to pay tax on such goods at the same time.

In case of exempted goods, the penalty will be 2 % of the value of goods or Rs   25,000 whichever is less.

• When the owner of the goods does not come forward to pay penalty and tax amount, penalty will be equivalent to 50% of the value of goods as reduced by tax paid also the owner needs to pay tax on such goods at the same time.

In case Exempted goods, the penalty will be 5% of the value of the goods or 25,000 whichever is less.

• The taxpayer can alsogive security for amount equivalent to amount 1 or 2 above, in the way prescribed by the officer.

For example- If garments worth Rs 1,00,000 has been detained, taxpayer has to pay

1. Tax (Rs 28,000) as well as penalty (Rs 28,000)

2. Tax on goods transported i.e. Rs 28,000 as well as Penalty i.e. Rs 22,000 (50% of the value of goods (1,00,000*50%=50,000)-tax Paid(Rs.28,000/-))

3. The taxpayer can also give security worth the penalty amount.

6. What actions can be taken by the tax officer?

Appointed officer may check goods at check posts. He can also check various documents that are required to be carried along with E-Way bill. If the officer is satisfied that tax has been evaded then goods can be confiscated by the officer after giving an order for the same. Once the goods are checked at one check post then such goods would not be checked at any other post.

7. What lesson the taxpayer should take from this?

Taxpayers must ensure that the goods transported should be issued with E-Way bill if the consignment value exceeds Rs 50,000 and while transporting the goods taxpayer must know the value of the goods, total tax on such goods, and it must be transported with invoice copy and e-way bill. E-Way bill is just like 26AS, entries reflected in 26AS must be taken in books of account, in the same way transactions in E-Way bill must be taken in the books. This might be cross checked by the department. Hence taxpayers must check all the details and then only issue E-Way bill.

From LegalMantra Team