Consequences of Not Extending Your E-way Bill Validity or Letting it Expire

Home » Blogs » Consequences of Not Extending Your E-way Bill Validity or Letting it Expire

Published Date:  11-12-2023   Author:   eva-mukherjee
consequences of not extending your e way bill validity or letting it expire

Introduction

An E-way bill refers to an electronically generated mandatory document. Every party involved in the transport of goods must carry this electronically generated document to move goods in any city of India. According to the latest CGST Act, consignors, consignees, and other involved parties should possess a valid e-way bill to move their goods, whose value exceeds Rs. 50,000 with a few exceptions. If anyone produces an expired e-way bill, he should be prepared to pay fines for overdue electronic waybills.

A unique e-way bill number must be available for every consignment to ship from one place to another. The validity of the generated number depends on the distance traveled by the goods vehicle. Authorized officers intercept vehicles at different check posts to verify the mandatory documents.

E-way Bill Validity Period in Tabulated Form

Before you go in-depth to learn how to handle situations with expired e-way bills, you should know the e-way bill validity period in table form as follows-

 

Distance Travelled Vehicle Type E-way Bill Validity
To a maximum of 200 kilometers Regular Vehicle (Other than over dimensional cargo) Only one day
For the upcoming 200 kilometers or its part after the initial distance Regular Vehicle (Other than over dimensional cargo) One additional day
To a maximum of 20 kilometers Over Dimensional Cargo Only one day
For the upcoming 20 kilometers or its part after the initial distance Over Dimensional Cargo One additional day

 

start free trial of gst billing software

Also Read:-  Benefits of E-way Bill Registration

Consequences when Vehicles Supplying the Goods Fail to Reach within the E-way Bill’s Validity Period

The latest GST law does not contain any provision related to the actions to take if the vehicle fails to reach the goods’ destination within the e-way bill’s validity period. The GST authorities may act as per section 129 of the latest CGST Act when the validity period associated with the e-way bill expires.

The authorities will pass the detention order and accordingly charge penalties for overdue e-way bills to the involved parties. However, in some cases, the High Courts in India permit writ and quash/set aside a few orders passed casually and without making any case related to tax evasion or its abetment.

Understanding the E-Way Bill System in GST: Compliance and Consequences

Consequences of Carrying an Expired E-way Bill

The consequences of an expired e-way bill not only cause monetary penalties but also lead to non-monetary loss to the taxpayer. According to the latest law-

Monetary Penalty

As moving goods with an expired e-way bill and invoice is an offense, involved parties are bound to pay fines for overdue electronic waybills. The penalty amount in this case will be Rs. 10,000 or the evaded tax amount (whichever will be greater). However, the bare penalty amount levied to failure for complying with the CGST rules is Rs. 10,000.

Vehicle Seizure and Detention

If the officers caught any vehicle transporting the goods with an expired e-way bill, they may seize or detain it immediately. The consignor, consignee, or other involved parties may release the respective vehicle only after they pay the appropriate tax or the penalty amount asked by the officer. Accordingly, there may be the following situations-

start free trial of gst billing software

  • If the owner is ready to pay the penalty amount, he should pay 100% of the payable tax.
  • If the owner does not pay the file, the penalty will be 50% of the overall value of the transported goods.

Other than the ramifications of overdue e-way bills mentioned here, taxpayers should essentially know that the officer may also detain his goods and the vehicle.

Conclusion

The supply chain of the taxpayer will be affected adversely because of long delays at different check posts. However, one can easily avoid unproductive and embarrassing situations by complying with the latest CGST rules. Furthermore, taxpayers who comply with the mandatory CGST law will always ensure of smooth transportation of goods both within the states and between two states in India. Therefore, start using the latest and the most reliable e-way bill portal today to simplify the entire process.

Frequently Asked Questions

  • What will happen if my e-way bill expires?

You may extend the validity period of your e-way bill on the site after it expires. For this, you should revise your details in Part B of the GST Form EWB-01. The form contains details related to justifying the extension of your e-way bill.

  • Can I extend the validity of my e-way bill after its expiry date?

You may extend or prolong the validity of your e-way bill within 8 hours before or after its expiry period. Moreover, there must be some unusual circumstances to prevent the shipment from reaching its destination within the given validity period.

  • How can a taxpayer cancel his e-way bill post 72 hours?

A taxpayer cannot cancel his e-way bill post 72 hours right from its generation.

  • How can a taxpayer pay the penalty of his e-way bill?

Every taxpayer may pay the penalty amount for each of the applicable consignments in the CGST-related form that refers to Form GST DRC-07.

  • What is the validity of an e-way bill in terms of number of days?

The validity of an e-way bill will vary according to the distance travelled by the vehicle carrying goods. You may have a single-day validity for a particular vehicle. Furthermore, validity depends solely on the used transportation mode for every 100 kilometres or a part of its journey. The validity will thus end on the last day at midnight.

Spread the love

Eva Mukherjee

Eva has expertise in writing content in diverse niches, including the latest rules and norms related to CGST Act, Stock Market and Shares.

Leave a Reply