TN Govt. issues instructions in respect of levy of penalty for minor defects in E-Way Bill

The Tamil Nadu Government vide Instruction No. Q1/17253/2019 dated 15 November 2021 had issued instructions on matters relating to E-way Bill system and acceptance of electronic copy of documents. However, given the nascent stage of GST during the issuance of the said circular, certain issues such as multiple places of delivery, multimodel shipment and over dimensional cargo etc. had not been addressed. Upon re-examination of the E-Way Bill issues, the Tamil Nadu Government has made the following amendments to the Circular:

• Where the person in charge of consignment of goods carries e-way bill, invoice or bill of supply or delivery challan, as the case may be, but the same involves minor defects not intended for evasion of tax but however if the documents otherwise clearly show sufferance of tax, then a penalty of up to Rs. 5000 per Act shall be levied;
• The person in-charge of a conveyance can carry the documents i.e. E-way bill and Invoice or bill of supply or delivery challan as the case may be in electronic form and the same shall be accepted. The Roving Squad officer cannot question the same.

GLS Comments:

It has been seen that the Revenue authorities often initiate proceedings against taxpayers for minor procedural lapses in E-Way Bills, even where the bona fide nature of the error is apparent on the face of the document. These proceedings unnecessarily add litigation burden on the already over-burdened judiciary. In order to resolve this issue, the CBIC vide Circular No. 64/38/2018-GST dated 14 September 2018 had prescribed a penalty of Rs. 1,000/- for minor clerical errors in E-Way Bills, such as spelling mistake, pin-code mistake, etc. However, the said Circular had not touched upon the errors committed without the intention to evade taxes.

The TN Government has commendably, issued the instant circular, bringing the errors committed in E-Way Bills, without intention to evade taxes, under a single umbrella of penalty amounting to Rs. 5,000/-. The CBIC shall also take note of the same and follow suit, which will ensure reduction of unnecessary litigation for minor lapses.

Disclaimer:

The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.