Consequences of non-generation of eWay Bill

Eway bill is an electronically generated document mandatory, to be carried for movement of goods across India. It is necessary for the movement of goods worth more than Rs. 50,000 with some exemptions. A unique eway bill number (EBN) would be generated for each such consignment to be transported. The validity of this EBN depends on the distance of transportation of goods. To enforce this rule, authorized officers may be instructed to intercept any vehicle at certain check posts for the verification of necessary documents. Additionally, a physical verification of the vehicle may be carried out on receiving specific inputs regarding tax evasion.

Latest Updates

29th August 2021

From 1st May 2021 to 18th August 2021, the taxpayers will not face blocking of e-way bills for non-filing of GSTR-1 or GSTR-3B (two months or more for monthly filer and one quarter or more for QRMP taxpayers) for March 2021 to May 2021.

4th August 2021

Blocking of e-way bills due to non-filing of GSTR-3B resumes from 15th August 2021.

1st June 2021

1. The e-way bill portal, in its release notes, has clarified that a suspended GSTIN cannot generate an e-way bill. However, a suspended GSTIN as a recipient or as a transporter can get a generated e-way bill. 

2. the mode of transport ‘Ship’ has now been updated to ‘Ship/Road cum Ship’ so that the user can enter a vehicle number where goods are initially moved by road and a bill of lading number and date for movement by ship. This will help in availing the ODC benefits for movement using ships and facilitate the updating of vehicle details as and when moved on road. 

18th May 2021

The CBIC in Notification 15/2021-Central Tax has notified that the blocking of GSTINs for e-Way Bill generation is now considered only for the defaulting supplier’s GSTIN and not for the defaulting recipient or the transporter’s GSTIN.

Consequences of not carrying Eway bill

The consequences of not generating & carrying the EWay bill can result in both monetary and non-monetary losses to the taxpayer. Goods being moved in the contravention of Law are liable for:

• Monetary Penalty

Moving goods without the cover of an invoice and Eway bill constitutes an offence and attracts a penalty of Rs.10,000 or the tax sought to be evaded (whichever is greater). Hence, the bare minimum penalty that is levied for not complying the rules is Rs. 10,000.

• Detention and Seizure

The vehicle that is found to be transporting the goods without an Eway bill can be detained or seized and would be released only on payment of appropriate tax and penalty as specified by the officer. Under this, there could be two situations:

1. If the owner wishes to pay the penalty, he must pay 100%  of the tax payable.
2. If not, the penalty will be equal to 50% of the value of goods.

  Apart from the legal consequences mentioned above, it is also important to note that the vehicle, as well as the goods of the taxpayer, can be detained. This would mean that the taxpayer’s supply chain would get affected due to the long delays at the check posts. Therefore, Embarrassing and unproductive situations like these can be avoided by simply complying the rules.