1

Person in Charge of conveyance shall carry prescribed documents during movement of goods

Section 68(1) of the CGST Act stipulates that the person in charge of a conveyance carrying any consignment of goods of value exceeding a specified amount shall carry with him the documents and devices prescribed in this behalf.

Section 68(2) states that the details of documents required to be carried by the person in charge of the conveyance shall be validated in such manner as may be prescribed.

Inspection and verification of Goods, Documents or Conveyance by Proper Officer

Section 68(3) provides that where any conveyance referred to in sub-section (1) is intercepted by the proper officer at any place, he may require the person in charge of the conveyance to produce the documents for verification, and the said person shall be liable to produce the documents and also allow the inspection of goods.

1.1

Rules 138 to 138D of the CGST Rules lay down, in detail, the provisions relating to e-way bills. As per the said provisions, in case of transportation of goods by road, an e-way bill is required to be generated before the commencement of movement of the consignment.

1.1

Documents and devices to be carried by a person-in-charge of a conveyance

Rule 138A

Rule 138A of the CGST rules prescribes that the person in charge of a conveyance shall carry the invoice or bill of supply or delivery challan, as the case may be; and in case of transportation of goods by road, he shall also carry a copy of the e-way bill in physical form or the e-way bill number in electronic form or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.

1.2

Section 129 of the CGST Act provides for detention, seizure and release of goods and conveyances in transit

Section 130 of the CGST Act provides for the confiscation of goods or conveyances and imposition of penalty.

2

In this regard, various references have been received regarding the procedure to be followed in case of interception of conveyances for inspection of goods in movement and detention, seizure and release and confiscation of such goods and conveyances. In order to ensure uniformity in the implementation of the provisions of the CGST Act across all the field formations, the Board, in exercise of the powers conferred u/s 168(1) of the CGST Act, hereby issues the following instructions:

2(a)

The jurisdictional Commissioner or an officer authorised by him for this purpose shall, by an order, designate an officer/officers as the proper officer/officers to conduct interception and inspection of conveyances and goods in the jurisdictional area specified in such order.

2(c)

For the purposes of verification of the e-way bill, interception and inspection of the conveyance and/or goods, the proper officer u/r 138B of the CGST Rules shall be the officer who has been assigned the functions u/s 68(3) of the CGST Act vide Circular No. 3/3/2017 – GST, dated 05.07.2017.

2(b)

Designated PO may intercept any conveyance for verification of documents and/or inspection of goods.

Person in charge of conveyance shall produce the documents on being asked by PO

On being intercepted, the person in charge of the conveyance shall produce the documents related to the goods and the conveyance.

If no discrepancies are being found, conveyance shall be allowed to move further

PO shall verify such documents and where, prima facie, no discrepancies are found, the conveyance shall be allowed to move further.

2(b)

An e-way bill number may be available with the person in charge of the conveyance or in the form of a printout, sms or it may be written on an invoice. All these forms of having an e-way bill are valid.

Wherever a facility exists to verify the e-way bill electronically, the same shall be so verified, either by logging on to http://mis.ewaybillgst.gov.in or the Mobile App or through SMS by sending EWBVER to the mobile number 7738299899 (For e.g. EWBVER 120100231897).

2(d)

Where the person in charge of the conveyance fails to produce any prescribed document or where the proper officer intends to undertake an inspection, he shall record a statement of the person in charge of the conveyance in FORM GST MOV01.

2(d)

PO shall issue an order for physical verification/inspection of the conveyance, goods and documents in GST MOV-02, requiring the person in charge of the conveyance to station the conveyance at the place mentioned in such order and allow the inspection of the goods.

2(d)

PO shall, within 24 hours of issuance of GST MOV-02, prepare a report in Part A of FORM GST EWB-03 and upload the same on the common portal.

Rule 138C(1)

A summary report of every inspection of goods in transit shall be recorded online by the PO in Part A of GST EWB-03 within 24 hours of inspection and

2(e)

Within a period of [1][3 days] from the date of issue of the order in FORM GST MOV-02, PO shall conclude the inspection proceedings, either by himself or through any other proper officer authorised in this behalf.

The proper officer shall also record, on the common portal, the final report of the inspection in Part B of FORM GST EWB-03 within three days of such physical verification/inspection.

Rule 138C(1)

Final report in Part B of GST EWB-03 shall be recorded within 3 days of such inspection.

2(e)

Where circumstances warrant such time to be extended, he shall obtain a written permission in FORM GST MOV-03 from the Commissioner or an officer authorized by him, for extension of time beyond three working days and a copy of the order of extension shall be served on the person in charge of the conveyance.

[2][Proviso to Rule 138C(1)

where the circumstances so warrant, the Commissioner, or any other officer authorised by him, may, on sufficient cause being shown, extend the time for recording of the final report in Part B of FORM EWB-03, for a further period not exceeding three days.

Explanation  to Rule 138C(1)

The period of 24 four hours or, 3 days

shall be counted from the midnight of the date on which the vehicle was intercepted.]

2(f)

On completion of the physical verification/inspection of the conveyance and the goods in movement, the proper officer shall prepare a report of such physical verification in FORM GST MOV-04 and serve a copy of the said report to the person in charge of the goods and conveyance.

2(g)

Where no discrepancies are found after the inspection of the goods and conveyance, the proper officer shall issue forthwith a release order in FORM GST MOV-05 and allow the conveyance to move further.

2(g)

Where PO is of the opinion that the goods and conveyance need to be detained u/s 129 of the CGST Act, he shall issue an order of detention in FORM GST MOV-06 and a notice in FORM GST MOV-07 as per section 129(3) of the CGST Act, specifying the tax and penalty payable.

The said notice shall be served on the person in charge of the conveyance.

2(h)

Where taxable person comes forward to make the payment of tax and penalty as applicable u/s 129(1)(a), PO shall, after the amount of tax and penalty has been paid, release the goods and conveyance by an order in FORM GST MOV-05.

Further, the order in FORM GST MOV-09 shall be uploaded on the common portal and

the demand accruing from the proceedings shall be added in the electronic liability register and the payment made shall be credited to such electronic liability register by debiting the electronic cash ledger or the electronic credit ledger.

2(i)

Where person comes forward to get the goods and the conveyance released by furnishing a security u/s 129(1)(c) of the CGST Act, the goods and the conveyance shall be released, by an order in FORM GST MOV-05, after obtaining a bond in FORM GST MOV-08 along with a security in the form of bank guarantee equal to the amount payable u/s 129(1)(a) or 129(1)(b).

The finalisation of the proceedings u/s 129 shall be taken upon priority by the officer concerned and the security provided may be adjusted against the demand arising from such proceedings.

2(j)

Where any objections are filed against the proposed amount of tax and penalty payable, PO shall consider such objections and thereafter, pass a speaking order in FORM GST MOV-09, quantifying the tax and penalty payable. On payment of such tax and penalty, the goods and conveyance shall be released forthwith by an order in FORM GST MOV-05.

The order in FORM GST MOV09 shall be uploaded on the common portal and the demand accruing from the order shall be added in the electronic liability register and, upon payment of the demand, such register shall be credited by either debiting the electronic cash ledger or the electronic credit ledger.

2(k)

In case the proposed tax and penalty are not paid within [3][14] days from the date of the issue of the order of detention in FORM GST MOV-06, action u/s 130 shall be initiated by serving a notice in FORM GST MOV10, proposing confiscation of the goods and conveyance and imposition of penalty.

2(l)

In the said notice, the quantum of tax and penalty leviable u/s 130 read with section 122, and the fine in lieu of confiscation leviable u/s 130(2) shall be specified.

Where the conveyance is used for the carriage of goods or passengers for hire, the owner of the conveyance shall also be issued a notice under the third proviso to section 130(2), proposing to impose a fine equal to the tax payable on the goods being transported in lieu of confiscation of the conveyance

2(m)

No order for confiscation of goods or conveyance, or for imposition of penalty, shall be issued without giving the person an opportunity of being heard.

2(n)

An order of confiscation of goods shall be passed in FORM GST MOV-11, after taking into consideration the objections filed by the person and the same shall be served on the person concerned.

Once the order of confiscation is passed, the title of such goods shall stand transferred to the Central Government.

In the said order, a suitable time not exceeding 3 months shall be offered to make the payment of tax, penalty and fine imposed in lieu of confiscation and get the goods released.

The order in FORM GST MOV-11 shall be uploaded on the common portal and the demand accruing from the order shall be added in the electronic liability register and, upon payment of the demand, such register shall be credited by either debiting the electronic cash ledger or the electronic credit ledger.

Once an order of confiscation of goods is passed in FORM GST MOV-11, the order in FORM GST MOV-09 passed earlier with respect to the said goods shall be withdrawn.

2(r)

Suitable modifications in the time allowed for the service of notice or order for auction or disposal shall be done in case of perishable and/or hazardous goods.

2(q)

In case neither the owner of the goods nor any person other than the owner of the goods comes forward to make the payment of tax, penalty and fine imposed and get the goods or conveyance released within the time specified in FORM GST MOV11, the proper officer shall auction the goods and/or conveyance by a public auction and remit the sale proceeds to the account of the Central Government.

2(s)

Whenever an order or proceedings under the CGST Act is passed by the proper officer, a corresponding order or proceedings shall be passed by him under the respective State or Union Territory GST Act and if applicable, under the Goods and Services Tax (Compensations to States) Act, 2017. Further, sub-sections (3) and (4) of section 79 of the CGST Act/respective State GST Acts may be referred to in case of recovery of arrears of central tax/State tax/Union territory tax.

2(t)

The procedure narrated above shall be applicable mutatis mutandis for an order or proceeding under the IGST Act, 2017.

2(u)

Demand of any tax, penalty, fine or other charges shall be added in the electronic liability ledger of the person concerned. Where no electronic liability ledger is available in case of an unregistered person, a temporary ID shall be created by the proper officer on the common portal and the liability shall be created therein. He shall also credit the payments made towards such demands of tax, penalty or fine and other charges by debiting the electronic cash ledger of the concerned person.

2(v)

A summary of every order in FORM GST MOV-09 and FORM GST MOV-11 shall be uploaded electronically in FORM GST-DRC-07 on the common portal.