GSTAT issues rulings on e-Way Bill penalties and anti-profiteering compliance

The Goods and Services Tax Appellate Tribunal (GSTAT) has issued several rulings clarifying tax compliance and penalty procedures. In a case involving D. S. Traders, the Lucknow Bench upheld a penalty for transporting an excavator without an e-Way Bill. The tribunal rejected the taxpayer's defense that the movement was not a supply of goods, noting that a delivery challan alone is insufficient without adequate documentary evidence and statutory backing.

In a separate anti-profiteering matter, the GSTAT ruled that Sane Retails Pvt. Ltd. successfully passed on GST rate benefits to customers through the issuance of Electronic Gift Vouchers (EGVs). The tribunal accepted the use of EGVs as a valid method for transferring tax benefits, despite objections from the Directorate General of Anti-Profiteering regarding the conditional nature of the vouchers.

Additionally, legal discussions have emerged regarding Rule 110(5) of the CGST Rules, 2017, which governs appeal fees for the GSTAT. The rule prescribes fees based on tax, input tax credit, or penalties, but the use of the word “or” in the provision has raised questions about whether these amounts should be calculated individually or as an aggregate sum.