This circular provides clarification on the treatment of minor discrepancies in e-way bills during movement of goods, with the objective of preventing unnecessary detention, seizure and penal action.

It clarifies that under section 68 of the CGST Act read with rule 138A, goods of value exceeding ₹50,000 must be accompanied by prescribed documents and a valid e-way bill. Where required documents or a valid e-way bill are not available, proceedings under sections 129 and 130 of the CGST Act may be initiated.

However, the circular emphasizes that detention and seizure under section 129 should not be initiated in cases where goods are accompanied by a valid invoice and e-way bill, but contain only minor clerical or technical errors. Illustrative examples of such minor discrepancies include spelling mistakes in names where GSTIN is correct, minor errors in PIN code or address without affecting destination, small errors in document number or vehicle number, and errors in HSN at the 4- or 6-digit level where tax rate is correctly mentioned.

In such cases, instead of initiating detention proceedings, a nominal penalty of ₹500 each under the CGST and SGST Acts (or ₹1,000 under the IGST Act) per consignment may be imposed under section 125, using Form GST DRC-07. The circular also requires officers to maintain and report weekly records of such cases to their controlling authorities.

The clarification aims to ensure uniform enforcement, reduce trade hardship, and avoid penal action for trivial mistakes.