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

Debate on E-way Bill Necessity for Intra-Factory Goods Movement Under Rule 138 of CGST Rules A discussion on the applicability of the E-way bill under GST involved a query about whether an E-way bill is necessary for goods moved within a factory premises, specifically to a godown located half a kilometer away. One participant argued that no E-way bill is needed as the goods were not transported on public roads. Another participant referenced Rule 138 of the CGST Rules, suggesting that an E-way bill is required since goods were moved. They noted that penalties could equal the tax involved, but discretionary powers might apply. The conversation emphasized the importance of proactive compliance to avoid penalties.