The Central Board of Indirect Taxes and Customs (CBIC) has clarified that goods will not be detained for minor mistakes/ errors in the E-Way Bill under the Goods and Services Tax (GST) laws.
A circular issued by the Board today prescribed the situations where the proceedings under section 129 of the Central goods and Services Tax Act, 2017 may not be initiated. They are, a) Spelling mistakes in the name of the consignor or the consignee but the GSTIN, wherever applicable, is correct; b) Error in the pin-code but the address of the consignor and the consignee mentioned is correct, subject to the condition that the error in the PIN code should not have the effect of increasing the validity period of the e-way bill; c) Error in the address of the consignee to the extent that the locality and other details of the consignee are correct; d) Error in one or two digits of the document number mentioned in the e-way bill e) Error in 4 or 6 digit level of HSN where the first 2 digits of HSN are correct and the rate of tax mentioned is correct; f) Error in one or two digits/characters of the vehicle number.
The Board said that in the above situations, penalty to the tune of Rs. 500/- each under section 125 of the CGST Act and the respective State GST Act should be imposed for each consignment.
The Board mandated that in all such situations, a consignment of goods must be accompanied with an invoice or any other specified document and also an e-way bill.
Section 129 of the CGST Act provides for detention and seizure of goods and conveyances and their release on the payment of requisite tax and penalty in cases where such goods are transported in contravention of the provisions of the CGST Act or the rules.
However, proceedings under section 129 of the CGST Act are being initiated for every mistake in the documents mentioned in para 3 above. “It is clarified that in case a consignment of goods is accompanied by an invoice or any other specified document and not an e-way bill, proceedings under section 129 of the CGST Act may be initiated,” the Board said.
Presently, the department is imposing penalty in case of minor discrepancies in the details mentioned in the e-way bill although there are no major lapses in the invoices accompanying the goods in movement. Penalties were imposed even in cases where the assessee was unable to fill Part-B of the E-Way Bill due to technical glitches in the portal.To Read the full text of the Circular CLICK HERE