COVID-19 has brought the entire economy to a halt, but as a necessity. Home Ministry vide its Order No. 40-3/2020/DM-I(A) along with its Guidelines dated 24.3.2020 and its addendum. A lot of business persons are enquiring as to whether generation of E way bill is mandatory in the days when lockdown is effective on account of COVID-19 in the entire country. The key point which needs to be understood is from two perpective:
a. From the perspective of CGST Act, 2017 read with relevant Rules
b. from the perspective of provisions of Distaster Management Act and Indian Penal Code, 1988
We shall focus the following article only from the persctive of businessman and not from non business transactions. From the perspective of CGST Act, we have to understand who is required to effect the generation of E Way bill. An E way bill is to be generated by a person who is effecting movement of goods from one place to another. However, there are exceptions to this Rule and certain movements have been exempted vide Rule 138 (14) of CGST Rules. Such exemption amongst others include movement by non motorised vehicles and movement of exempted goods. .
However, supply of essential goods is exempt from this lockdown. Essential goods shall include the following during this period:
- Shops, including ration shops (under PDS), dealing with food, groceries, fruits and vegetables, dairy and milk booths, meat and fish, animal fodder.
- essential goods including food, pharmaceuticals, medical equipment through E-commerce
- Manufacturing units of essential commodities.
- Production units, which require continuous process, after obtaining required permission from the State Government
During this lockdown period, all essential supplies which are exempt from GST are not required to geenrate E Way Bill. However, those essential supplies which are taxable would require generation of E Way Bill. A person who is allowed to oeprate and his employees are also allowed to come can comly with law as applicable to his business. However, in exceptional scenarios, even non generation of E Way bill can be contested later for eg., when there is an urgent call from a Hospital for supply of medicines. Also, resort to Point 5 of the Press Release by ministry of Finance dated 24.3.2020 looks bleak which provides for extenion of due dates and E Way Bill is not a document having a due date but it is a furnishing of information for movement of good. Yet we believe, that government may look into this aspect as well and the notifications for relaxations should include exemption from E Way bill as well.
It is to be remembered that very few movement of goods are being moved during these days and in case of any verification of movement post this lockdown for reason of movement from the Truck owner may cause problem for those who shall be non compliant.
The above discussion was relevant for those who are dealing in essential supplies. For those not dealing in essential supplies and yet commences a movement of goods would need to explain as how without operation of his shop, godown, factory etc., was open for supply and how he has transacted the supply during this period. Such person shall be punishable under Disaster Management Act as well as Indian Penal Code. The relevant provisions of the Disaster Management Act, 2005 are from Section 51 to 60 of the Act. The provisions imposes penalty and prosecution to non compliants. The relevant provsion Section 51 reads as under:
51. Punishment for obstruction, etc.—Whoever, without reasonable cause—
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(b) refuses to comply with any direction given by or on behalf of the Central Government or the State Government or the National Executive Committee or the State Executive Committee or the District Authority under this Act,
shall on conviction be punishable with imprisonment for a term which may extend to one year or with fine, or with both, and if such obstruction or refusal to comply with directions results in loss of lives or imminent danger thereof, shall on conviction be punishable with imprisonment for a term which may extend to two years.
Similarly, Section 188 of Indian Penal Code provides as under:
188. Disobedience to order duly promulgated by public servant.—Whoever, knowing that, by an order promulgated by a public servant lawfully empowered to promulgate such order, he is directed to abstain from a certain act, or to take certain order with certain property in his possession or under his management, disobeys such direction, shall, if such disobedience causes or tends to cause obstruction, annoyance or injury, or risk of obstruction, annoyance or injury, to any person lawfully employed, be punished with simple imprisonment for a term which may extend to one month or with fine which may extend to two hundred rupees, or with both; and if such disobedience causes or trends to cause danger to human life, health or safety, or causes or tends to cause a riot or affray, shall be punished with imprisonment of either description for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.
Explanation.—It is not necessary that the offender should intend to produce harm, or contemplate his disobedience as likely to produce harm. It is sufficient that he knows of the order which he disobeys, and that his disobedience produces, or is likely to produce, harm.
Illustration An order is promulgated by a public servant lawfully empowered to promulgate such order, directing that a religious procession shall not pass down a certain street. A knowingly disobeys the order, and thereby causes danger of riot. A has committed the offence defined in this section.
Thus, looking into the gravity of the situation, all persons should refrain themselves from supplying non essential goods, and thus, E way bill should not be an issue.
