E-Way Bill – GST Authority Vs Judiciary:

In 2017, India introduced a landmark tax reform in the form of the Goods and Services Tax (GST). One of the key components of GST is the E-Way Bill, which is an electronic document that tracks the movement of goods across state borders. The E-Way Bill system has been a topic of debate between the GST Authority and the Judiciary in India, with different opinions and rulings. In this blog, we will discuss the E-Way Bill and the conflicting views of the GST Authority and the Judiciary.

1.What is an E-Way Bill?

An E-Way Bill is a document that contains details of the goods being transported, the consignor, the consignee, and the vehicle carrying the goods. It is mandatory for all interstate transportation of goods with a value exceeding Rs. 50,000. The E-Way Bill system was introduced to reduce tax evasion, ensure proper tax collection, and track the movement of goods across state borders.

a.The GST Authority's View on E-Way Bill:

The GST Authority believes that the E-Way Bill system is essential for proper tax collection and to curb tax evasion. It argues that the system has been successful in reducing tax evasion and increasing tax collection. The Authority has made it mandatory for all interstate transportation of goods exceeding Rs. 50,000 to have an E-Way Bill. It has also made several amendments to the E-Way Bill rules to make the system more efficient and user-friendly.

b.The Judiciary's View on E-Way Bill:

The Judiciary has been critical of the E-Way Bill system and has made several rulings against the GST Authority's enforcement of the system. In some cases, the Judiciary has held that the enforcement of the E-Way Bill system is causing undue harassment to businesses and traders. The Judiciary has also expressed concerns about the technical glitches in the E-Way Bill system and the impact it has on businesses.

c.Conflicting Views:

The conflicting views of the GST Authority and the Judiciary have created confusion for businesses and traders. While the GST Authority argues that the E-Way Bill system is essential for proper tax collection, the Judiciary has expressed concerns about its impact on businesses. The Judiciary's rulings against the GST Authority's enforcement of the E-Way Bill system have also caused uncertainty and confusion for businesses.

2.GIST OF GST LAW ON INSPECTION OF GOODS IN TRANSIT:

Under the Goods and Services Tax (GST) law in India, the inspection of goods in transit is an important component of the compliance and enforcement framework. The primary objective of such inspections is to prevent tax evasion and ensure that the correct amount of tax is paid on goods being transported.

Here is a summary of the key points related to inspection of goods in transit under GST law:

a.The law allows tax authorities to intercept and inspect any vehicle transporting goods on the basis of specific information or suspicion of tax evasion.

b.The tax authorities may require the person in charge of the vehicle to produce documents such as the tax invoice, delivery challan, e-way bill, or any other document as prescribed under the law.

c.The tax authorities may physically verify the goods being transported and also take samples for testing, if required.

d.If the tax authorities are satisfied with the documents and the physical verification of goods, they may allow the vehicle to proceed. However, if they suspect tax evasion, they may detain the vehicle and initiate further proceedings.

e.The law provides for the release of detained goods and vehicles on the furnishing of a security equivalent to the amount of tax, interest, and penalty payable.

f.In case of an error in the e-way bill, the tax authorities may either allow the person to update the e-way bill or detain the goods and vehicle until the necessary corrections are made.

In summary, inspection of goods in transit is a key compliance and enforcement mechanism under the GST law. The law provides for the interception, inspection, and detention of goods and vehicles based on specific information or suspicion of tax evasion. However, it also provides for the release of detained goods and vehicles on the furnishing of a security, and the correction of errors in the e-way bill.

3.E-Way Bill Proceedings not to be initiated in following situations:

Under the Goods and Services Tax (GST) law in India, there are certain situations in which proceedings related to E-Way Bill may not be initiated. These situations are important for businesses and traders to understand, as it can help them avoid unnecessary penalties and litigation. Here are some situations where E-Way Bill proceedings cannot be initiated:

a.When the value of goods being transported is less than Rs. 50,000: As per the GST law, an E-Way Bill is required only for the transportation of goods whose value exceeds Rs. 50,000. Therefore, if the value of the goods being transported is less than Rs. 50,000, proceedings related to E-Way Bill cannot be initiated.

b.When the goods are being transported within a state: The E-Way Bill is required only for the transportation of goods across state borders. Therefore, if the goods are being transported within a state, proceedings related to E-Way Bill cannot be initiated.

c.When the mode of transportation is non-motorized: The E-Way Bill is required only for the transportation of goods by road, and not for other modes of transportation such as air, water, or rail. Therefore, if the goods are being transported by a non-motorized mode, proceedings related to E-Way Bill cannot be initiated.

d.When the goods are being transported by a government department or agency: The E-Way Bill provisions do not apply to the transportation of goods by a government

department or agency. Therefore, if the goods are being transported by a government department or agency, proceedings related to E-Way Bill cannot be initiated.

e.When the goods are being transported from a customs port, airport, air cargo complex, or land customs station to an inland container depot or a container freight station for clearance by customs: In such cases, the provisions related to E-Way Bill are not applicable, and proceedings cannot be initiated.

In conclusion, it is important for businesses and traders to be aware of the situations where E-Way Bill proceedings cannot be initiated, to avoid unnecessary penalties and litigation. However, it is important to note that these exemptions do not apply in cases of willful tax evasion or non-compliance with GST provisions.