E way bill applicability

[KARAN VERMA]

Sir

I have sold material value ₹ 40 lakhs to customer to whom I let out godown in my factory. The godown is situated with in premises of factory having distance half kilometre.

My question is whether I m required to generate E way bill ? Is there any distance based exemption ?

What are penalty clauses if I have shown sale of ₹ 40 lakhs in GSTR-1 return and also paid taxes in GSTR-3B return but not generate E way bill for this.

[YAGAY andSUN]

In our view there is no need to issue E-Way Bill as goods were not transported as goods were not on Road but moved with the Factory Premises where your customer's warehouse/godown.

[KARAN VERMA]

Sir, i agree with your view that goods moved with in the factory only.

But if Gst officer not agree with this, then what will be penalty amount.

[KASTURI SETHI]

As per Rule 138 of CGST Rules, E-way bill is required to be generated/issued by a registered person who causes movement of goods. In this scenario, movement of goods has been caused. Hence e-way bill is required. Penalty is equal to the tax involved.

[KARAN VERMA]

But sir, i have already paid taxes in 3B return. And Section 129 applicable only when goods are in transit.

In my general penalty under section 122 of ₹ 10000 should be levied because there is no evasion of tax.

[KASTURI SETHI]

Yes. You are right. But in such scenario the proper officer has discretionary power. I am of the view why even ₹ 10, 000/- should be paid as penalty. One must always be proactive. If penalty and late fee are paid to any department for any lapse which is avoidable, it means working system of the unit or person is not. This is the area where any person can save his/her money.

[Ganeshan Kalyani]

I agree with the views of Sri Kasturi Sir.

AI Summary

E-way bill applicability for intra premises movement may still be required; noncompliance can attract tax-equivalent penalty. Whether a registered person must generate an E-way bill for movement of goods within the same factory premises to a customer's godown is disputed: one view treats intra premises movement as not in transit and not requiring an e way bill, while another relies on Rule 138 to require an e way bill and notes that non compliance may attract a penalty equal to the tax involved; enforcement discretion and preference for proactive compliance are emphasized.