E-Waybill/ Bill of Supply Requirement for Un Registrered Person

[NARENDER YARRAGORLA]

An unregistered person is supplying scrap without any bill of supply, goods in transit detained by Department, officer has valued the Rs 1.90 lakhs himself and Levied penalty @200% of tax amount, the action of the officer is correct sir

[Rajagopalan Ranganathan]

Sir,

Un-registered person has to issue a commercial invoice whenever he supply the goods. According to Section 32 of CGST Act, 2017 "a person who is not a registered person shall not collect in respect of any supply of goods or services or both any amount by way of tax under this Act." Therefore when the amount of tax payable is nil in respect of un-registered person, the Department cannot levy any penalty @ 200 of the tax payable since the tax payable is nill and 200% of 0 is also 0. You may contest the demand at appropriate forum.

[Shilpi Jain]

I understand that tax is not charged because it is supplied by an unregistered person and not because it is exempt.

[SOWMYA CA]

If the supplier is unregistered, we need to see if the recipient is registered or not. If Recipient is registerd under GST, Liability of e-way bill falls on Registered recipient.

[Shilpi Jain]

Agreed. Also e way bill portal allows unregistered person also to generate e way bill

[Ganeshan Kalyani]

It is better to ask the registered customer to generate EWB. Dept is very strick now to catch any vehicle moving without proper documents.

AI Summary

Unregistered supplier penalized 200% of tax for scrap delivery without bill; debate over e-way bill responsibility. An unregistered person supplying scrap without a bill of supply had their goods detained by the Department, which imposed a penalty of 200% of the assessed tax amount. One respondent noted that under the CGST Act, an unregistered person cannot collect tax, hence no penalty should apply as the tax payable is zero. Another highlighted that if the recipient is registered, they bear the e-way bill responsibility. It was also mentioned that unregistered individuals can generate e-way bills, and it is advisable for registered customers to do so, as the Department is stringent about documentation.