Eway Bill Reconcilation

[VIGNESH]

Sir. While Reconciling GSTR-1 & Eway Bill generated, there are huge differences. But all the difference are Sales done to one the Sister Concern in the same State & same District and within 10km Radius. We have now got a notice from the department seeking clarrification, how to go about it? (Salesin GSTR-1 are higher than E-way bill Generated)

Sir.(Continuation to the above query) client has not been caught by GST officials while moving Goods, only while reconciling GSTR-1 & Eway bill they have raised.the query.kindly educate how to go about!

[Amit Agrawal]

Please see Rule 138 (14) of the CGST Rules, 2017 and check if your case falls within any of those exceptions.

[Shilpi Jain]

This has not led to any loss to revenue. There could be a general penalty levied for this procedural lapse. Make a submission that you had thought there was an exemption for generating the EWB in these cases (assuming that is the reason EWB was not generated).

Also the department could consider or allege that you have issued invoices without supply of goods. In which case ensure you have sufficient evidence to prove that actually goods were sold.

Pls go through the Circular 171/2022 issued recently on fake invoicing to get further details on the penalty that could be levied.

[Shilpi Jain]

Ensure that in such cases in future the EWBs are issued.

AI Summary

E way bill compliance: check statutory exceptions, document basis, and preserve proof to avoid procedural penalties. Differences between GSTR 1 and e way bill records for intra state related party sales should be checked against recognised exceptions to e way bill requirements; if an exception applies, document the basis. Absent an exception, the discrepancy is a procedural non compliance potentially attracting a general penalty and scrutiny under fake invoicing guidance; retain evidence of actual supply and ensure future generation of e way bills.