Non-generation of E Way Bill & GST Input Credit

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This query is : Resolved

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This discussion clarifies the implications of a vendor failing to generate an E Way Bill (EWB) for goods exceeding Rs. 1 Lakh. It addresses whether the buyer is then responsible for generating the EWB and, crucially, if the buyer can still claim GST input credit despite the vendor's default. The consensus is that while non-generation of an EWB incurs penalties, input tax credit may still be available if the buyer possesses a valid invoice and proof of goods receipt, such as a transporter's L/R.

Rajesh

Rajesh

(Querist)
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15 November 2020 Facts:
1) Vendor supplies goods worth more than Rs.1 Lakh (within Maharashtra) invoice value
2) Vendor does not generate E Way Bill (EWB)
3) Vendor issues proper Tax Invoice to buyer
Query:
a) If vendor fails to generate EWB, is buyer liable to generate EWB for goods he has bought?

b) If answer to query "a" above is yes and buyer does not generate EWB, can a buyer avail GST input credit though vendor defaulted in generating EWB?

OR

c) If buyer is not liable to generate EWB because vendor fails to do so, can buyer avail GST input credit though vendor defaulted in generating EWB?

Lekhraj sood

Lekhraj sood (Expert)
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16 November 2020 E-waybill can be generated by the consignor, consignee or transporter. Non-generation of e-waybill is liable for penalty.
However, if you have L/R of the transporter and such other proof of transportation of goods then the ITC will be available to you if you have received the goods and have a valid invoice with you.

Rajesh

Rajesh

(Querist)
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16 November 2020 Thank you for reply!

You have mentioned that non-generation of EWB is liable for penalty. In the case narrated by me, who will be liable for penalty? If vendor is registered person and in spite of that if he does not generate EWB, who will be liable for penalty?

Lekhraj sood

Lekhraj sood (Expert)
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16 November 2020 Logically it should be on the person responsible for transportation of goods.

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