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

Discrepancies Found in GSTR-1 Filings vs. E-way Bills; Rule 138 (14) Exceptions and Penalty Implications Discussed A user from a private company raised a query about discrepancies between GSTR-1 filings and E-way bills, specifically noting higher sales figures in GSTR-1 for transactions with a sister concern within a 10km radius. The issue was flagged during reconciliation, not during the movement of goods. Respondents advised checking Rule 138 (14) of the CGST Rules for exceptions, suggested that the discrepancy might incur a general penalty, and emphasized the importance of having evidence of actual goods sold. They also recommended issuing E-way bills in future transactions and reviewing Circular 171/2022 regarding penalties for fake invoicing.