๐๐ฒ๐๐ฒ๐ป๐๐ถ๐ผ๐ป ๐ผ๐ณ ๐๐ผ๐ผ๐ฑ๐ ๐ฑ๐๐ฒ ๐๐ผ ๐-๐ช๐ฎ๐ ๐๐ถ๐น๐น ๐๐ฟ๐ฟ๐ผ๐ฟ๐ under GST
Goods can be detained under GST for e-way bill (EWB) errors, but a distinction is made between minor clerical errors and major non-compliance that suggests an intent to evade tax. Minor errors typically result in a small penalty, while major violations lead to significant penalties, detention, and potentially confiscation of the goods and vehicle.
Grounds for Detention (Major Errors/Non-Compliance):
Detention under Section 129 of the CGST Act is generally triggered by significant contraventions of EWB rules, including:
Absence of a valid EWB and/or tax invoice: This is a primary reason for detention.
Expired EWB validity: Transporting goods after the EWB’s validity period has expired is a serious offense (unless the validity is extended while the goods are in transit).
Significant discrepancies in goods transported vs. documents: Mismatches in the description, quantity, or value of goods compared to the EWB and invoice can indicate tax evasion.
Fake invoices or fraudulent transactions: This is a severe violation that can lead to confiscation under Section 130.
Incorrect GSTIN of consignor/consignee (if not a minor spelling mistake): Major errors in critical details that affect the legitimacy of the transaction.
1๏ธโฃ ๐๐ฒ๐ด๐ฎ๐น ๐ฃ๐ฟ๐ผ๐๐ถ๐๐ถ๐ผ๐ป:
โ Section 68 of the CGST Act with Rule 138A mandates carrying valid invoices and e-way bills for consignments exceeding โน50,000, while Section 129 allows detention/seizure for transport rule violations.
2๏ธโฃ ๐๐ฟ๐ฒ๐พ๐๐ฒ๐ป๐ ๐๐๐๐๐ฒ:
โ Authorities often initiate proceedings under Section 129 for even minor document errors, leading to unjustified detentions and penalties.
3๏ธโฃ ๐ ๐ฎ๐ท๐ผ๐ฟ ๐๐ฟ๐ฟ๐ผ๐ฟ๐:
โ Absence of e-way bill, expired or invalid e-way bill, mismatch in goods description, or missing tax documents are treated as serious violations warranting detention and heavy penalties.
4๏ธโฃ ๐ ๐ถ๐ป๐ผ๐ฟ ๐๐ฟ๐ฟ๐ผ๐ฟ๐:
โ Clerical mistakes such as spelling errors, minor PIN mismatches, slight vehicle/document number errors, or partial HSN inaccuracies are covered under Circular No. 64/38/2018, attracting only a nominal penalty of โน500 under CGST and โน500 under SGST.
5๏ธโฃ ๐๐ฒ๐ด๐ฎ๐น ๐ฅ๐ฒ๐บ๐ฒ๐ฑ๐ถ๐ฒ๐:
โ When detained, the taxpayer can respond with documents at the site, apply for release by paying tax/penalty, or contest through an appeal under Section 107 or file a writ before the High Court for arbitrary action.
6๏ธโฃ ๐ฅ๐ฒ๐ณ๐๐ป๐ฑ ๐ข๐ฝ๐๐ถ๐ผ๐ป:
โ If the taxpayer succeeds in appeal or writ, any tax or penalty paid during detention can be claimed as a refund.
7๏ธโฃ ๐๐ผ๐บ๐ฝ๐น๐ถ๐ฎ๐ป๐ฐ๐ฒ ๐ง๐ถ๐ฝ๐:
โ Generate e-way bills accurately, maintain supporting records, correct mistakes promptly, and document reasons for genuine errors or technical glitches to defend against penalties.
8๏ธโฃ ๐๐๐ฑ๐ถ๐ฐ๐ถ๐ฎ๐น ๐ฉ๐ถ๐ฒ๐:
โ Courts (Allahabad, Calcutta, Karnataka, Madras, Telangana) have consistently ruled that absence of intent to evade tax or minor lapses like e-way bill expiry should not invite harsh penalties, upholding fairness and proportionality in enforcement.
๐ฅ๐ฒ๐ด๐ฎ๐ฟ๐ฑ๐
๐๐๐ฃ๐ฆ
Team- Intellex Strategic Consulting Private Limited
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