📌 First – Expiry ≠ Automatic Tax Evasion

One of the most searched GST queries is:

“E way bill expired what to do?”

Let’s be clear:

✔ Expiry of E-way bill is a procedural lapse
❌ It does NOT automatically mean tax evasion

However, if mishandled, it can lead to detention under Section 129 of the CGST Act, 2017.

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🔍 Latest Legal Position (Important for 2026)

After amendments and judicial developments:

• Section 129 proceedings are civil in nature

• Intent to evade tax is relevant

• Minor technical lapses should not attract disproportionate penalty

• Officers must examine facts, not act mechanically

High Courts have repeatedly held that:

Mere expiry of E-way bill without tax evasion cannot justify harsh penalty.

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⏳ Can You Extend E-Way Bill After Expiry?

Under Rule 138(10) of CGST Rules:

✔ Validity can be extended
✔ Extension allowed within:

• 8 hours before expiry

• 8 hours after expiry

After this window, same E-way bill cannot be extended.

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🚨 If E-Way Bill Has Already Expired – Immediate Action Plan

Step 1: Check 8-hour window

If available → Extend immediately.

Step 2: If Window Missed

Generate fresh E-way bill (if goods still moving).

Step 3: If Vehicle Detained

Proceed strategically — not emotionally.

Officer may issue:

• MOV-02 (Detention order)

• MOV-06 (Tax & penalty calculation)

• MOV-07 (Notice under Section 129)

This stage requires careful legal response.

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🧠 3 Practical Real-Life Scenarios (With Solutions)

🟢 Scenario 1: Vehicle Breakdown on Highway

Facts:
Truck carrying taxable goods breaks down at midnight. E-way bill expires at 2 AM. Extension not done.

What usually happens:
Next day, GST squad intercepts vehicle.

Legal Insight:
This is not tax evasion. It is a genuine delay.

Correct Strategy:

• Provide repair invoice / mechanic bill

• Provide driver statement

• Produce GPS or toll receipts

• Emphasize tax already paid

👉 In many cases, penalty can be reduced or proceedings dropped.

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🟢 Scenario 2: Distance Miscalculated While Generating E-Way Bill

Facts:
Distance entered as 300 km instead of 800 km. Validity expires earlier than actual travel time.

Risk:
Officer alleges improper compliance.

Legal Insight:
Distance error is procedural, not substantive violation.

Correct Strategy:

• Show Google map route

• Explain genuine calculation error

• Demonstrate invoice-tax consistency

Courts have held minor mistakes should not invite harsh penalty.

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🟢 Scenario 3: Expired E-Way Bill but Goods & Invoice Genuine

Facts:
E-way bill expired 5 hours ago. All documents proper. Tax paid.

Officer Action:
Initiates Section 129 penalty.

Important Legal Angle:
Section 129 is not meant for mechanical penalty.
If there is no intent to evade tax, proceedings are challengeable.

Strategic Response:

• Submit detailed written reply to MOV-07

• Highlight absence of revenue loss

• Cite judicial precedents

• Avoid immediate panic payment

Often penalty can be substantially reduced.

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💰 What Is the Penalty Under Section 129?

Situation	Penalty
Owner comes forward	200% of tax
Owner does not come forward	Higher liability

But remember:

👉 Law provides penalty ceiling
👉 Courts control arbitrary application

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⚠️ When Situation Becomes Serious

It becomes serious if:

❌ Invoice missing
❌ Fake supply suspicion
❌ Goods mismatch
❌ Vehicle details wrong
❌ Tax unpaid

Expiry alone is generally defendable.

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📋 Practical Compliance Tips for Businesses

✔ Train transporters on extension rules
✔ Monitor long-distance consignments
✔ Calculate correct distance
✔ Maintain movement documentation
✔ Respond legally to MOV notices

Preventive compliance reduces litigation.

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🏁 Final Takeaway

An expired E-way bill is a manageable compliance issue —
but how you respond determines whether it becomes a minor inconvenience or major penalty exposure.

Proper handling at detention stage can significantly reduce financial risk.

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📞 Advisory Note

If goods are detained due to E-way bill expiry, early-stage legal handling often determines the final outcome. Timely and structured response is critical.