The Indian E-way Bill has gone through several changes over the years. In order to make compliance simpler and laws more transparent, the government is taking measures to make some significant upgrades in GST compliance. Thus, the E-way Bill system has also seen new changes that have been implemented lately. You as a business owner need to be aware of these rules and law amendments in order to avoid penalties and confiscation of your goods.
In this article, we will particularly discuss the latest updates and new changes in E-way Bill 2022 that directly affect your business if you are a part of the supply chain.
1. Period of issuance of notice and passing of order under Section 129(3) of the CGST Act
As per GST Notification 39, notified 1st January, 2022 as the date on which provisions of sections 108, 109 and 113 to 122 of the Finance Act, 2021 will come into force. So, amendments to section 129 of the CGST Act, which is detention, seizure and release of goods and conveyances regarding e-way bill contraventions, will come into effect from 1st January, 2022.
In simple terms, when found a mismatch between the goods carried and the E-way bill for the goods, the proper officer can issue a notice and charge a penalty to the concerned person. As per rule 142, the concerned person needs to pay the penalty as mentioned in the issued notice which is 200% of the tax payable in the general case (earlier 100%) within a period of seven days from the date of issuance of notice.
Note: New Rule 144A has been added for the recovery of the penalty imposed u/s 129 (E-way bill violations). If the concerned person does not pay the penalty voluntarily within 15 days from the receipt of the order then the recovery is to be made by way of an auction/selling of the goods that are being seized. Similarly, Rule 154 has been substituted to provide for the appropriation of the sale proceeds.
Please refer to the image below to understand the flow even better:
2. Increase in Pre-deposit for Appeal before Appellate Authority
In sec 107 (6) Appellate Authority in that, a new proviso is added that no appeal shall be filed against an order under subsection (3) of sec 129 unless a sum equal to 25% of the penalty has been paid by the appellant.
There is a requirement to deposit 10% of the penalty imposed as pre-deposit in case of the first appeal which is increased to 25% of the penalty amount in case of detention and seizure of conveyance and goods during transit.
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