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

Prohibition on tax collection by unregistered suppliers prevents penalties based solely on tax amounts; e way bill duty may fall on registered recipients.
An unregistered supplier must issue a commercial invoice or bill of supply but is barred from collecting tax; where tax payable by such supplier is nil, penalties computed as a percentage of tax payable lack basis if tied solely to that tax. E way bill obligations depend on transaction parties: a registered recipient may be liable to generate the e way bill, registered customers can be asked to generate it, and the e way bill portal may permit unregistered generation in some circumstances.