Penalty under Section 129: When Improper E-Way Bills Are Not Penalised
The Goods and Services Tax (GST) framework mandates strict compliance with E-Way Bill provisions for the seamless movement of goods across states. However, penalties under Section 129 of the CGST Act, 2017, cannot be imposed arbitrarily, especially if there is no intention to evade tax. This principle has been upheld in various legal rulings, highlighting the importance of assessing the intent behind non-compliance.
Let’s dive into the implications of Section 129, key case laws, and actionable steps to protect taxpayers from unwarranted penalties.
What Is Section 129 of the CGST Act?
Section 129 governs penalties for goods transported without proper documentation, including an incorrect or missing E-Way Bill. Authorities can:
- Detain or seize goods and the conveyance.
- Levy penalties up to 200% of the tax amount.
However, imposing penalties requires authorities to establish a deliberate attempt to evade taxes.
How to Avoid Penalties for E-Way Bill Issues
| Step | Actionable Advice |
|---|---|
| Generate Accurately | Double-check details like GSTIN, invoice number, and destination. |
| Maintain Records | Keep supporting documents like invoices readily available. |
| Respond to Notices Quickly | Provide clarifications promptly to avoid escalations. |
| Use Digital Tools | Automate E-Way Bill generation for accuracy. |