Top Stories Unlocking GST: Understanding the E-Way Bill Requirement for Imported Goods [Find Draft Reply Format Here] The Gujarat HC in a Recent case held that if IGST is already paid, the absence of an E-Way Bill does not justify detention or penalties By Saagarika Gopinath – On February 14, 2025 11:46 am – 3 mins read GST is a destination-based tax on the consumption of goods and services. The Goods and Service Tax ( GST ) regime, introduced in 2017, has brought a revelation in the indirect tax system employed in India. The transportation of imported goods within India has, at several times, raised questions about whether an E-Way Bill is required. What do you mean by an e-way bill? An E-Way Bill (Electronic Way Bill) can be understood as an important document required under the GST Act, 2017, for transporting goods worth Rs. 50,000 or more within or across states in India. It is generated online through the E-Way Bill Portal and applies to suppliers, recipients, and transporters. Once generated, it comes with a unique E-Way Bill Number (EBN) that helps track the movement of goods. The validity of the bill depends on the distance—one day for every 100 km of travel. To generate an E-Way Bill, businesses need to provide details such as a GST invoice or bill of supply, transporter ID, or vehicle number, and in some cases, a delivery challan. While this process ensures transparency and smooth movement of goods, there are exceptions, such as goods transported by non-motorized conveyance, essential items like perishable food, newspapers, and gold, and shipments within 10 km within the same state, where only partial documentation is needed. Know When to Say No to Cash Transactions, Click Here Failing to comply with E-Way Bill rules can lead to serious consequences, including heavy penalties and even the seizure of goods. Authorities can impose fines of either Rs. 10,000 or 100% of the tax amount, whichever is higher. If caught without a valid E-Way Bill, businesses may face delays and legal trouble. Ensuring compliance not only avoids these penalties but also helps businesses operate smoothly under GST. So, whether you’re a supplier, a transporter, or a business owner, staying informed about E-Way Bill regulations can save you from unnecessary hassle and keep your operations running seamlessly. Taxpayers Can Now Generate and Manage E-Way Bills through SMS Using a registered mobile phone, you can create e-way bills via SMS. Enabling SMS e-way bill generation is the first step for everyone. Register the mobile device that will be used to generate e-way bills via SMS. Then, to create, manage, and cancel e-way bills, send short SMS codes to a specific cellphone number that is controlled by the e-way bill portal/GSTN. See our article on the SMS method of e-way bill production for further information. GST Provisions Under Section 2(107) of the CGST and SGST Acts, a ‘taxable person’ is defined as someone registered under the law, and a taxable supply is any sale of goods or services that attracts GST. It is to be noted that Section 2(108) of the CGST and SGST Acts, which are identical, defines “taxable supply” as a supply of goods or services or both that is chargeable to goods and services tax under the said statutes. The GST law mandates that IGST is collected at the time of importation. Since this tax was already paid, moving the goods from the customs location to the factory is not considered a separate taxable supply. Section 129 of the GST statute deals with detaining goods when taxes or penalties are due. Know When to Say No to Cash Transactions, Click Here Important Judgments Supporting the Non-Requirement of an E-Way Bill In the case of Assistant State Tax Officer & Anr. vs. M/s. Indus Towers Limited (Kerala HC, WP 196 of 2018), the Kerala High Court held that minor procedural lapses, like missing documents, should not lead to detention unless there is an intent to evade tax. Read More: Goods can’t be Detained for Mere Non-Compliance of GST Rules when Transaction is Non-Taxable Supply: Kerala HC Similarly, in the case of M/S Neuvera Wellness Ventures Pvt. Ltd. vs. State of Gujarat (Gujarat HC, SCA/7189/2019) the Gujarat High Court in this case held that if IGST is already paid, the absence of an E-Way Bill does not justify detention or penalties. Read More: Goods can’t be detained for want of Part-B of E-Way Bill in case of Non-Taxable Supply: Gujarat HC Conclusion It is advised to always keep a copy of the Bill of Entry and IGST payment receipt during transportation. If faced with an unwarranted demand for tax or penalties, legal backup is available. Thus, if IGST has already been paid at the time of import, authorities should not require an E-Way Bill for transporting goods from the customs warehouse to the importer’s premises. By going through the precedents, we can conclude that the court has ruled in favor of the businesses. Click the Blue Button Below to Access a Draft Format requesting to Release Goods Detained for Lacking E-Way Bill
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