During VAT era, it was difficult for the department to stabilise and track the movement of goods from one place to another because of the various rules followed by different state. Some states used to generate e-forms, however, some states were still using manual system which was tedious and cumbersome process for both officers and also taxpayers. Entities started hesitating to expand the business to various states because of the various procedures to be followed in different states. In addition to this, there was corruption and tax evasion found across various check posts across the country.
In order to avoid all these difficulties, Web based e-way bill system is introduced where document is generated electronically with few simple steps.
E-way bill shall be generated by every registered person, who causes movement of goods of consignment exceeding Rs 50,000/-, in relation to supply or for reasons other than supply or due to inward supply from an unregistered person. A unique e-way bill number (EBN) will be generated after filing the form. The validity of EBN depends upon the distance of transportation of goods.
Consequences of non-compliance
If the transporter does not generate the e-way bill, then he will be liable for a penalty of
a) Rs 10,000/- or
b) The tax payable on seized goods, whichever is higher.
If the officer detains the Vehicle of transport of such goods, then the penalty would depend on following situations:
i) If the owner wishes to pay penalty voluntarily, then he must pay 100% of the tax payable on such goods as penalty.
ii) Otherwise, the penalty would be 50% of the value of goods.
E-way bill supports the main Motto of GST that is ‘ONE NATION, ONE TAX, and ONE MARKET’. E-way bill reduces corruption and tax evasion and also it facilitates hassle free movement of goods throughout India. E-way bill information will also reflect in other party of the consignment, which helps department for cross verification and accountability of the transactions.
So, lets follow the rules related to E-way bill and make our life simple and penalty free.