Interception of vehicles for inspection of goods in transit
The government wants every person carrying goods more than the value defined in the rules shall produce the documents for satisfying the movement of goods. Currently, every consignment whose value is more than 50 thousand should have e waybill. The person carrying the goods shall produce e way bill by way of hard copy or by the electronic way as and when demanded by the officer during the transit. This is as per Sub-section (1) of section 68 of the Central Goods and Services Tax Act, 2017.
Type of Documents shall be available with the in-charge of goods
According to Central Goods and Service Tax Rules 138 to 138D, below are the requirements documents required to keep in charge of goods.
a) In case goods are transported by road, an e way bill is required to be generated before the movement of goods from the place of the consignor.
b)The person who is in possession of goods and vehicles shall carry the invoice or bill of supply or delivery challan as the case may be.
c) In case goods are transported by road the person in charge of goods or vehicle shall also carry e Waybill in the physical form generated through e way bill portal or the e waybill number in electronic form.
Warrant of seizure and detention of goods under GST for Inspection
As per Section 129 of the CGST Act, the government has the power to detain, seize and release the goods in transit. Below are the regulations/guidelines to perform detention of vehicles, seizure, and release of goods. Also, detention charges to be applicable are given in detail.
a) First of air the jurisdictional commissioner shall grant similar powers to his officers to seize or detain the vehicle in transit within his jurisdictional area.
b) Thereafter such an officer can detain and do vehicle verification of said documents/goods.
c) After detention the person in charge of goods shall provide the documents of the said consignment.
d) If the documents are in line with the goods carried then the officer shall release the vehicle to move it further.
e) An e-way bill number may exist with the person carrying goods in the form of a printout, or SMS or it may be written on an invoice. All these forms of having an e-way bill are valid.
f) Also if the electronic facility of checking e-way bills is available then the same can be used. It can be verified either by login into http://mis.ewaybillgst.gov.in portal or the Mobile App or through SMS by sending EWBVER <EWB_NO> to the mobile number 77382 99899 (For e.g. EWBVER 120100231897).
Physical inspection of Goods and conveyance when documents are not inline
a) When a person in charge of goods or vehicle fails to produce the above-required documents, the officer shall record a statement of in charge of the vehicle of goods in FORM GST MOV 01.
b) The proper officer shall issue an order for physical verification of conveyance, goods, and -documents FORM GST MOV-02. The officer shall mention the place of verification of conveyance as required. The person in charge of goods shall take the vehicle as per the given address.
c) The officer in charge shall, within twenty-four hours of the aforementioned issuance of FORM GST MOV 02, prepare a report in Part A of FORM GST EWB-03 and upload the same on the common portal.
d) Within 3 working periods, from the date of issue of form Mov – 02, officer shall complete the inspection proceedings
e) In case inspection could not get completed within 3 working days from the date of form mov -02 , the officer shall get written permission on FORM GST MOV-03 from the commissioner or the authorized officer. Also, the extension permission copy shall be served to the person in charge of conveyance.
f) After completion of the verification process, the officer shall prepare a report of physical verification in form GST mov-04. Also, a copy of the report shall be served to the in-charge of conveyance.
g) An officer should also file a report on the common portal in Part B of FORM GST EWB-03 within three days after completion of such physical verification of goods and vehicle as the case may be.
Release of goods and conveyance where there are no discrepancies
a) If there are no discrepancies found in physical verification, the vehicle should be released immediately. An officer should release the order in FORM GST MOV-05 and allow the vehicle to move further.
Detention of vehicle for payment of tax and penalty
If the officer comes to the opinion that the vehicle should be detained then he shall issue an order of detention in FORM GST MOV-06 and a notice in FORM GST MOV-07. This notice should specify the tax involved in such goods and the penalty payable. The copy should be given to the in-charge of conveyance.
When tax accrued and the penalty is paid by the owner or his authorized agent.
a) If the owner of the goods or any authorized person comes forward and pays tax liability and penalty accrued, the officer should issue a goods and conveyance release order in FORM GST MOV-05.
b) The order in FORM GST MOV 09 shall be uploaded on the common portal by the officer. The demand accruing from the proceedings shall be added to the electronic liability register. Further, the payment made shall be credited to such electronic liability register by debiting the electronic cash ledger or the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act.
c) If the owner of the goods or any authorized person comes forward and provides the security to release the goods under clause (c) of sub-section (1) of section 129 of the CGST Act, the goods and conveyance shall be released. An order to be issued 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 under clause (a) or clause (b) of sub-section (1) of section 129 of the CGST Act.
In case Objections are raised by the owner or his authorized agent on tax and penalty computed.
a) If any objections are filed on the proposed amount i.e. tax and penalty by the owner of the goods or his authorized person, the officer 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 amount, an order shall be released by an order in FORM GST MOV-05.
The order in FORM GST MOV 09 shall be uploaded on the common portal. The demand accruing from the proceedings shall be added to the electronic liability register.
Further, the payment made shall be credited to such electronic liability register by debiting the electronic cash ledger or the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act.
Consequences when proposed Tax is not paid within the given time – After detention notice
a) In case the proposed tax and penalty are not paid within seven days from the date of the issue of the order of detention in FORM GST MOV 06. Also, an action under section 130 of the CGST Act shall be initiated by serving notice in FORM GST MOV 10, proposing confiscation of the goods and conveyance and imposition of penalty on said conveyance.
b) If an officer comes to an opinion the tax has been evaded in the detained goods or conveyance, he can directly invoke section 130 of the CGST Act and issue a notice to propose the confiscated goods and conveyance in FORM GST MOV 10.
c) No order for confiscation of goods or conveyance, or for the imposition of penalty, shall be issued without giving the person in charge of goods or conveyance an opportunity of being heard.
d) At the same time an order of confiscation of goods shall be passed in FORM GST MOV 11, after taking into consideration the objections filed by the person in charge of the goods (owner or his representative), and the same shall be served to the person concerned of goods.
Once the order of confiscation is passed, the title of such goods shall stand transferred to the Central Government and it becomes property of the Government.
e) After issuing the order of confiscation, not more than three months are allowed for the owner of goods to make the payment of tax and penalty imposed to release the goods or conveyance.
f) The order in FORM GST MOV 11 shall be uploaded by the officer on the common portal and the demand accruing from the order shall be added to 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 of the concerned person in accordance with the provisions of section 49 of the CGST Act. Also 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.
Consequences when proposed Tax is not paid within the given time – After confiscation notice
a) If the owner of the goods or any person other than the owner of the goods comes forward to make the payment of tax, penalty, and fines imposed and takes the goods or conveyance released within the time specified in FORM GST MOV 11, the proper officer shall auction the said goods and/or conveyance by a public auction and remit the sale proceeds to the account of the Central Government.
What? When the owner of goods is not GST Registered?
a) Demand of any tax, penalty, fine, or other charges shall be added to the electronic liability ledger of the person concerned of goods. If there is no electronic liability ledger is available in the 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.