Kind attention is invited to Circular No. 41/15/2018-GST dated 13thApril, 2018 as amended by Circular No. 49/23/2018-GSTdated 21stJune, 2018 vide which the procedure for interception of conveyances for inspection of goods inmovement, and detention, release and confiscation of such goods and conveyanceswas specified.

2. Various representations have been received regarding impositionof 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 goodsin movement. The matter has been examined. In order to clarify this issue and to ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, in exercise of its powers conferred under section 168 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as ‘the CGST Act’) hereby clarifiesthe said issue hereunder.

3. Section 68 of the CGST Actread with rule138Aof theCentral Goods and Services Tax Rules, 2017 (hereinafter referred to as ‘the CGST Rules’) requires that theperson incharge of a conveyance carrying any consignment of goods of value exceeding Rs 50,000/-shouldcarry a copy of documents viz.,invoice/bill of supply/delivery challan/bill of entry and a valide-way billin physical or electronic form for verification. In casesuch person does not carry the mentioned documents,there is no doubt that a contravention of the provisions of the law takesplace and the provisions of section 129 and section 130of the CGST Actare invocable.Further, it may be noted that the non-furnishing of information in Part Bof FORM GST EWB-01amounts to the e-way bill becoming not a valid document for the movement of goods by roadas perExplanation (2) to rule138(3) of the CGST Rules, except in the case where the goods are transported for a distance of upto fifty kilometreswithin the State or Union territoryto or from the place of business of the transporter to the place of business of the consignor or the consignee, as the case maybe.

4.Whereas, 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 made thereunder. It has been informed that proceedingsunder 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.

5. Further, in case a consignment of goods is accompanied with an invoice or any other specified document and also an e-way bill, proceedings under section 129 of the CGST Act may not be initiated, inter alia, inthe following situations:

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 butthe address of the consignor and the consignee mentioned is correct, subject to the condition thattheerror in the PIN code should not have the effect of increasing the validityperiodof 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.

6. In case of 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 (Rs.1000/-under the IGSTAct) in FORM GST DRC-07for every consignment.A record of all such consignments where proceedings under section 129 of the CGST Act have not been invoked in view of the situations listed in paragraph 5 above shall be sent by the proper officer to his controlling officer on a weekly basis.

7. Difficulty, if any, in implementation of this Circular may please be brought to the notice of the Board. Hindi version would follow.
 

(Upender Gupta)
Commissioner (GST)

CBEC/20/16/03/2017-GST