Key Factors –

The following amendment is hereby issued to the Circular No.10/2019 dated 31.05.2019 as amended on 17.12.2019 and 15.11.2021 regarding levy of penalty relating to various types of offences noticed by the Roving Squad officers. 

Issue 1(a) – Bill to Ship to: The 'Ship To' address in E way bill differed from where the goods are being actually delivered which is an unregistered place of the consignee, who is a registered tax payer, but the place of delivery is in same locality i.e. having the same PIN Code as mentioned in the E - way bill

• Within period of 15 days' from the date of change in any particulars of registration, requirement to submit an application for amendment regarding additional place of business in the common portal.
• If valid rental / lease agreement etc. is produced as proof of unregistered place of business, and if the date of such rental/lease agreement is within 15 days prior to the date of checking of vehicle, minor penalty of Rs.5,000/- shall be levied as per Section-125.
• If Application Reference Number (ARN) has already been generated regarding declaration of additional place of business, no penalty is to be levied. If no ARN and no valid rental / lease agreement is produced as above, penalty of Rs.25,000/- is to be levied.
• Fir repeated the same offence, more than once in a calendar month or twice in a calendar quarter or thrice in a financial year - Maximum penalty under Section-129 is to be levied.

Issue – 1(b) - The 'Ship To' address in E- way bill differed from where the goods are being actually delivered which is an unregistered place of the consignee, who is a registered tax payer, but the place of delivery is in another locality i.e. PIN Code mentioned in the E way bill is different.

• Maximum penalty under Section 129 of the TNGST Act, is to be levied.

Issue 1(c) - Bill To - Ship To - The 'Ship To' address in E-way bill differed from where the goods are being actually delivered which is a registered place of the consignee.

• Minor penalty of Rs.5,000/- is to be levied under Section-125 of the TNGST Act.
• For repeated offence in a calendar month, or twice in a calendar quarter or thrice in a financial year -  maximum penalty of Rs.25000/- under Section 125 of the TNGST Act, 2017 is to be levied.

Issue 2 - Bill To - Ship To: The given 'Ship To' address of delivery is place of Construction of a building but not a registered place of the consignee builder and materials were delivered based on construction agreement and consignee is a registered tax payer. The address of delivery as per document and place of actual delivery is same.

• Refer clarification of para 1(a)

Issue 3 - Bill To - Ship To : Whether one invoice is enough for movement of goods in 'Bill To - Ship To' transactions.

• If supplier A places purchase order on supplier B to ship the goods to the recipient C then,
• i) If e-way bill is generated by B, corresponding invoice of B raised on A and the same details filled in e-way bill is required during the transportation of goods.
• ii) If e-way bill is generated by A, corresponding invoice of A raised on the recipient C and the same details filled in e-way bill is required during the transportation of goods.
• iii) If, Recipient C is a registered tax payer, but his GSTIN is not given in the 'Bill to Ship to' invoice, minor penalty of Rs.5,000/- under Section 125 of the TNGST Act, 2017 is to be levied.

Issue 4 - The address given in E – way bill is a ware house / place of transporter which is a registered place of the taxpayer and used for further transaction of those goods by the recipient taxpayer.

• Goods in movement including when they are stored in transporter's godown (even if the godown is- located in the recipient taxpayer's city / town) prior to delivery shall always be accompanied by a valid e-way bill.
• In case the consignee / recipient tax payer stores his goods in the godown of the transporter, then the transporter's godown has to be declared as an additional place of business by the recipient tax payer.

Refer the circular for further clarifications.