GSTAT says e-way bill required for internal stock transfers
In short
GSTAT said an internal stock transfer still needs an e-way bill under Rule 138.
It also said a penalty under Section 129 can be avoided if there is no tax liability and no intent to evade tax. The report does not say who was involved or what the final case details were.
What the reporting says
GSTAT held that an internal stock transfer requires an e-way bill under Rule 138, but absence of tax liability and intent to evade tax can rule out a penalty under Section 129. The publisher summary says the ruling separates the transport-document requirement from penalty exposure. The available reporting does not identify the parties, the date of the transfer, or whether a penalty was actually imposed before the ruling.
Why it matters
GSTAT ruled that an internal stock transfer must still have an e-way bill under Rule 138. At the same time, it said a penalty under Section 129 may not apply when there is no tax liability and no intent to evade tax. The reporting does not name the taxpayer or say whether the authorities had already levied a penalty before the tribunal’s decision.