Detention of Goods or Conveyance under GST
we will analyse the provisions of detention of goods or conveyance under GST Act of India
What is the procedure for Detention of Goods or Conveyance during movement / Road Check
CBI&C has issued detailed circular No. 41/15/2018-GST dated 13-4-2018, elaborating procedure for interception of conveyances for inspection of goods in movement, detention, release and confiscation of contravening goods and conveyances.
How E way bill number is to be carried with vehicle
E-way bill number may be available on the print out, SMS or it may be written on invoice. Any of this mode is permissible.
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 <EWB_NO> to the mobile number 77382 99899 (For example EWBVER 120100231897)
Who can do inspection of Vehicle or Goods ?
Proper Officer authorised by jurisdictional Commissioner can conduct interception and inspection of conveyances and goods in the prescribed jurisdictional area [para 2(a) of Circular].
When can Officer release the detained Vehicle ?
The proper officer can intercept a vehicle. If prima facie, no discrepancy is found, he can release the vehicle.
What is to be done before making Inspection of Vehilce
If proper officer intends to undertake inspection, he should first record the statement of person in charge of conveyance (normally driver) in form GST MOV-01. In addition, the proper officer shall issue order of physical verification in form GST MOV-02.
Within 24 hours of issue of such order, the proper officer shall prepare a report in part A of form GST EWB-03 and upload the same on common portal.
Time limit to conclude inspection proceedings
Within three working days from order in form GST MOV-02, the proper officer shall conclude inspection proceedings. This period can be extended by Additional/Joint Commissioner by issuing order in form GST MOV-03. Copy of that order shall be served on the person in charge of the conveyance.
The final report shall be prepared in form GST MOV-04. Its copy will be served on the person in charge of conveyance. The final report shall be uploaded in part B of form GST EWB-03.
What is to be done if discrepancy is found
If no discrepancy was found, release order shall be issued in form GST MOV-05. If discrepancy is noticed, order of detention shall be served in form GST MOV-06 and a notice in form GST MOV-07, specifying tax and payable.
How the Tax Payments will be made if demand is raised
If tax and penalty is paid as per provisions of section 129(1)(a) or 129(1)(b) of CGST Act, goods and conveyance will be released by issuing order in form GST MOV-05. The order in form GST MOV-09 will be uploaded on common portal, demand will be added in electronic liability register and amount will be debited from electronic cash ledger or electronic credit ledger of the concerned person.
What will happen if person refuses to pay demand
If the person in charge refuses to pay the tax and penalty, the goods and conveyance shall be released on receipt of bond in form GST MOV-08 and security in form of bank guarantee equal to amount specified in section 129(1)(a) or 129(1)(b) of CGST Act.
If objection is raised, personal hearing shall be given and speaking order shall be passed in form GST MOV-09, quantifying tax and penalty payable. On payment of such amount release order shall be issued in form GST MOV-05 and uploaded.
If amount is not paid within seven days of order of detention in form GST MOV-06, notice proposing confiscation of goods shall be issued in form GST MOV-10.
In case of public conveyance, notice shall be issued proposing to impose fine equal to tax payable on the goods being transported in lieu of confiscation of conveyance.
Order of confiscation of goods and conveyance shall be issued in form GST MOV-11. This will be added to electronic liability register. If the person is unregistered, temporary ID shall be created.
After issue of order in form GST MOV-11, earlier order under GST MOV-09 shall be withdrawn.
If the owner does not pay within specified time, goods and conveyance shall be auctioned.
What can a person do if his goods or conveyance is detained
If a vehicle is intercepted and detained for more than 30 minutes, the transporter may upload the said information in form GST EWB 4 :- Report of detention of vehicle under GST on the common portal [Rule 138D CGST Rules 2017 : Facility for uploading information regarding detention of vehicle].