In Karnataka we have to issue E-Sugam for every sale and interstate purchase made. One of the client wrongly issued an E-Sugam.

He need to cancel the E-Sugam.

Should he visit the VAT department to cancel the E-sugam or it can be done online?

What are the provisions related to E-Sugam under Karnataka Vat Act, 2003?

Posted 2 years, 9 months ago by Rahul Rai

You can cancel E-Sugam within 48 hours. You have to login with your Id and password provided by VAT department.

click on E-Sugam menu and select Cancel. A window will open, fill the E-Sugam number and date.

Select the E-Sugam form. Once form open, select the reason for cancellation and click on cancel.

The E-Sugam will be cancelled.

Posted 2 years, 9 months ago by CA Pulkit Sharma

As pulkit rightly told, E sugam can be cancelled online within 48 hours only. You need not go to department for this. After cancellation you can again apply for a new one.

Posted 2 years, 9 months ago by Mukesh Jain CA

Gentle Man,


I have a quick question to ask.


An client of my firm is engaged in business of manufacture of specialised tools which is  has its presence both in India and outside India. My client has specific question on e sugam as below


My client manufactures the specialised tools on 21st January 2015 and along with relevant invoices for exports raises an e sugam for movement of goods to chennai for furtharance of goods via sea. As per the requirement of customs the goods have to be sealed at ICD in container before they are despatched to chennai via road. The checking and inspection at ICD will generally take 1- 2 working days and shipped out after the one time bottle seal on the container. Now when the goods are in transit from ICD to chennai, the check post authorities have raised an caution stating the goods are not shipped out from border of karnataka within the time limit prescribed under KVAT as such the e -sugam is invalid.

Can any one of expert shower light as to how this e-sugam has to be cancelled, is there a requirement of new e-sugam or what is the procedure.



S Kamath

Posted 2 years, 8 months ago by CA Sundeep Kamath

I dont think department has issued any notification fot these kind of issues. However, once enquired with department and reply they had was, inform the department with E-Sugam and provide reasonable proof of non-delivery.

You can issue fresh E-Sugam while dispatching. However E-Sugam should have been cancelled. In your case if delay was only for 1-2 days, I dont think E-Sugam lost its validity.

Generally for distance more than 500km, validity is for 5 days. You need to inform department and obtain aknowledgement, in future while department audit or assessment, if E-Sugam is not cancelled or communicated to department may cause problems.

Posted 2 years, 8 months ago by CA Pulkit Sharma

Hi Pulkit,

Can you please let know under what relevant section / rule of KVAT the intimation be served. As my understanding goes once e -sugam is raised on the invoice the same invoice cannot be subject to e sugam again, as it would defeat the intension of legislature for introducing E Sugam.

If there are two e sugam for same invoice on different dates, it means dealer is involved in mal pratice .


S Kamath

Posted 2 years, 8 months ago by CA Sundeep Kamath

i am persuing my ug in a reputed college and work part time in a place which has two firms

on 30:04:2015 i had to make and invoce and e-sugam and i did it but i made a major fault

by making invoice in one firm and e-sugam of same invoice in other firm its 15 days now and

even i came to know about it today is there any solution by which i can solve this problem..

Posted 2 years, 5 months ago by Muhammad Ghyas

plz suggest a remedy for the problem

and you can mail the solution at (


Posted 2 years, 5 months ago by Muhammad Ghyas

E-Sugam can be cancelled online within 48 hours. In your case it is more than 48 hours, so you cannot do anything online.

Take all documents with you and visit the LVO. Submit application to LVO for cancellation of E-Sugam and get the aknowledgement for future references.

Posted 2 years, 5 months ago by CA Pulkit Sharma

There are two aspects one could look in the problem Mr.Muhammad Ghyas has highlighted.

a. The movement of goods without the statutory form.

b. Misuse of statutory form for an purpose which is a defect / oversight error.

Even with an positive approach to VAT department, the plea may be accepted for cancellation, however if the officer is smart enough, the E-sugam not issuance be noticed at time of Audit. The officer looking on the nature of contravention and extend of interest of revenue may or may not levey a penalty of movement of goods without statutory form.

Regarding the misuse of statutory form for a purpose different from that intended to, the penal provisions shall apply accordingly.

If you have any questions please drop your thought on tikshare..!



CA.Sundeep Kamath

Posted 2 years, 5 months ago by CA Sundeep Kamath

what all docments should be the necessary documents that i have to present in LVO office

and are their any chances of any charges. will they accept my plea as their is nothing intentional

i am worried about my job and the company reputation as everything is my fault. will they cancel

the e-sugam after 15 days

Posted 2 years, 5 months ago by Muhammad Ghyas

If you have never visited a VAT office. I will advice to consult a professional since your documents should contain only required information and remember officers in VAT department are only to loot your money.

Write a letter explaining your situation.

Attach, E-Sugam generated. Attach Sales register of both the firms.

Request officer to delete the E-Sugam number wrongly generated.

Do not forget to obtain a copy of aknowledgement (take a copy of letter and take Receipt seal from department).

Nothing will happen, they are not going to charge extra VAT if you submit it at earliest.

Posted 2 years, 5 months ago by Rahul Rai

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