How to Check Your E-Way Bill Limit and Avoid Penalties?

What is an E-Way Bill Limit?

An E-Way Bill (Electronic Way Bill) is a document required to move goods in India under the Goods and Services Tax (GST) regime. It acts as a proof of the transportation of goods and ensures compliance with GST rules. E-Way Bills are generated on the GST portal and are required for goods movement if the value exceeds certain limits. There are three types of e-way bill limits –

Distance-Based Limit

The E-Way Bill km limit refers to the distance that goods can be transported without needing an E-Way Bill.

• – The minimum distance for generating an E-Way Bill is 20 km.
• – The maximum distance for which an E-Way Bill can be valid is 1,000 km, with a validity period extending further for every 100 km.

The distance limits determine the validity period of the E-Way Bill, but for any movement exceeding the threshold of ₹50,000, an E-Way Bill must be generated irrespective of the distance.

Amount-Based Limit

The E-Way Bill amount limit refers to the value of goods being transported. An E-Way Bill is generally required when the value of the goods exceeds ₹50,000. This applies to both Interstate and Intra-State movements of goods, with some exceptions depending on the specific goods being transported.

If the total value of the goods exceeds ₹50,000, an E-Way Bill must be generated, regardless of the mode of transportation (whether by road, rail, air, or sea). However, if the value is less than ₹50,000, the E-Way Bill may not be necessary in most cases.

Limits for Inter-State and Intra-State Supply

The need for an E-Way Bill limit for inter-state supply also varies depending on whether the goods are being transported Inter-State (between two different states) or Intra-State (within the same state).

• – For Interstate transportation of goods, an E-Way Bill is required if the value of goods exceeds ₹50,000, regardless of whether the goods are being moved within the same state or across state borders.
• – Similarly, for Intra-State transportation (i.e., within the same state), an E-Way Bill is required if the value of the goods exceeds ₹50,000.

Common Penalties for Exceeding E-Way Bill Limits

Section 129 (1) – Penalty for Violating E-Way Bill Requirements

This section deals with the penalties for transporting goods without a valid E-Way Bill or when the E-Way Bill is not in order. The penalties specified include –

• – A fine of ₹10,000 or the amount of tax evaded, whichever is higher.
• – ₹100 per kilometer for transporting goods without a valid E-Way Bill for the distance travelled.

Section 129 (3) – Seizure and Detention of Goods and Conveyances

Under this section, if goods are transported without a valid E-Way Bill, the authorities are allowed to seize and detain the goods and conveyances involved in the transportation. This provision is aimed at enforcing compliance and preventing tax evasion.

Section 129 (4) – Opportunity of Hearing

This section ensures that the taxpayer has the right to be heard before the penalty or action (seizure or detention) is enforced. A proper officer must provide an opportunity for a hearing, allowing the concerned party to explain or present their case.

Section 130 – Confiscation of Goods and Conveyances

This section deals with the confiscation of goods and conveyances if the provisions of the CGST Act or the E-Way Bill Rules are violated. The goods and vehicles may be seized and confiscated if found guilty of transporting goods without valid documentation or E-Way Bills. Additionally, a penalty may be levied in case of confiscation.

Section 125 – Penalties for Minor Errors in Documents

Section 125 addresses minor mistakes or discrepancies in the transport documents, such as spelling errors or small mistakes in the consignment details.

• – The section levies a fine of ₹500 for minor errors in consignment documents (such as spelling errors or incorrect details) that are still in compliance with the overall requirements.
• – A state penalty of ₹1,000 is imposed for each erroneous consignment for state-specific errors.

How BUSY Accounting Software Simplifies E-Way Bill Management?

BUSY Accounting Software streamlines E-Way Bill under GST management by automating generation, tracking, and renewal based on invoice details. It ensures compliance with the e-way bill limit for interstate and intra-state movements, reduces manual errors, and supports bulk generation. The E-Way Bill software also provides real-time status and compliance alerts, making it easier for businesses to stay compliant and avoid penalties.