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GST

Penalty for moving goods without an e-way bill

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Goods moved without a valid e-way bill can be detained under Sec 129. If the owner comes forward, goods are released on payment of a penalty equal to 200 percent of the tax payable. A separate penalty of Rs 10,000 or the tax evaded can also apply.

Provisions

Sec 129, CGST Act 2017; Sec 122(1)(xiv), CGST Act 2017

Analysis

Example: goods worth Rs 2 lakh with 18 percent GST, that is Rs 36,000 tax, moved without an e-way bill. If the owner comes forward, release needs penalty of Rs 72,000. If the owner does not, penalty is the higher of 50 percent of value or 200 percent of tax. Several High Courts have set aside penalties for minor technical errors with no intent to evade.

Close

  1. Always generate e-way bills before dispatch
  2. If detained, check the MOV-02 and MOV-06 papers
  3. Reply to MOV-07 with the invoice and reasons
  4. Pay penalty to release goods if needed and appeal later
  5. Fix the internal process that caused the lapse

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