Consequences of Not Generating an E-Way Bill

An E-way bill is a mandatory document that needs to be generated for the movement of goods from one place to another. Generally, an e-way bill has to be mandatorily generated for consignments whose value exceeds INR 50,000. However, the validity of an e-way bill is totally dependent upon the distance of transportation. So, in this blog, we will discuss all the consequences of not generating an e-way bill.

Consequences of Not Generating an E-way Bill 

The E-Way Bill System permits field officers to intercept vehicles at any place and time. Moreover, field officers can demand verification documents. These days, mobile units are continually keeping watch and businesses cannot dodge officers at designated checkpoints. During the movement of goods, if the business is unable to produce an E-Way Bill, the consequences can be monetary or non-monetary, or both. Here are some of the consequences of not generating an e-way bill: 

Penalties and Fines 

The minimum fine for not carrying a valid e-way bill is INR 10,000. In this way, if goods are transported without an e-way bill, a fine is guaranteed. However, if the authorities conclude that this non-generation of the e-way bill was an excuse to evade GST, they can levy a penalty which might be equivalent to the amount of tax payable on the specific consignment or INR 10,000, whichever is higher. 

Detention and Seizure of Goods and Vehicle 

For repeat offenders, the goods and the vehicle can be detained and seized by the field officer for non-complying with the e-way bill provisions. However, the taxpayer can get the possession back, once he/she pays the dues or penalty with 7 days of detention and seizure. But if the taxpayer fails to pay the dues or penalties within the stipulated time, the tax officer can even confiscate the goods or/and vehicle. 

Increased Attention from the GST Authorities 

Once a taxpayer is caught non-complying with the e-way bill provisions, GST authorities keep tracking his/her movement of consignment. Moreover, GST officers can ask such taxpayers to show the reconciliation statement between the purchases declared in GST returns and e-way bills. In case if they find any discrepancy, the consequences can be severe such as cancelation or suspension of GST registration. 

Other Consequences of Not Generating an E-way Bill 

1. Supply-chain Obstruction 

The most important consequence of not generating an e-way bill is that the supply-chain system will get obstructed. This will ultimately hamper the production system due to the non-availability of raw-material. 

2. Fall in Business Revenue 

Another major consequence of e-way bill provisions non-compliance is that the business revenue will hit rock bottom due to the non-efficient production system. 

3. Impact on Goodwill 

The non-compliance of e-way bill provision can also impact goodwill due to litigation carried out by the GST authorities (especially for repeat offenders). 

How Can GSTrobo® Help You? 

GSTrobo® has established an e-way bill software that will help you stay e-way bill provision compliant by automating the e-way bill generation process. So, with GSTrobo® e-way bill software you do not have to face any monetary or non-monetary consequences as it auto-populates data from e-invoices. And, its advanced distance calculator will ensure delivery of the consignment in the shortest time possible.