Traders should supply their goods using e-Way Bill only, warned tax experts. They have found cases where in addition to normal provisions, special provisions are also applied and traders have been subjected to heavy penalty if goods were found to be transported without e-Way Bill. According to market grapevine, government has started taking harsh measures to meet the revenue targets.
Tax practitioner Axat Vyas explained that if a good has 18 per cent GST and is found to be transported without e-Way Bill then, normally 18 per cent penalty is imposed. This means that if the value of goods is Rs 1 lakh, penalty of Rs 18,000 is levied in addition to GST of Rs 18,000. However, of late additional penal provisions are also imposed. These results in additional fines. These include flat penalties of Rs 10,000 and Rs 25,000 as well as a fine equal to the the value of goods. In this case it would be Rs 1 lakh. So the total pay out will increase from Rs 36,000 to Rs 1,71,000, if all other provisions are applied.
This is almost 4.5 times of payment under ordinary circumstances. Market sources said that governments are facing shortfall in tax collections and so additional provisions are applied to mop up revenue collection. Even as there are no written order to apply additional provisions, officials in the field say that there are orders from higher ups to apply them. There have been cases when mobile check posts have applied additional penal provisions. Most importantly, traders are not given a hearing and so if they want to challenge the penalty, they will have to challenge it in High Court, in which case they will have to pay hefty fees to lawyer. "The best option is to transport goods with e-Way bill so that one is not subjected to various hassles," advised Vyas.