Procedures for interception of conveyances in GST

CMA Susanta Kumar Saha | Sep 25, 2018 |

Procedures for interception of conveyances in GST

Procedures for interception of conveyances in GST : Commissioner modified procedures for interception of conveyances for inspection of goods in movement, detention, release and confiscation etc. an analysis

A. Circular No. 41/15/2018 GST dated 13th April, 2018 as amended by Circular No. 49/23/2018 GST dated 21st June, 2018 procedure for interception of goods in movement, and detention, release and confiscation of such goods and conveyances were specified.

B. Representations were made regarding non imposition of penalty in case of minor discrepancies in e-way bill with no major lapses in the invoices accompanying the goods in movement.

C. Provisions of law in respect of e-way bill:

i. Section 68 of the CGST Act, 2017 read with rule 138A of the CGST Rules, 2017 stipulates the person in charge of the conveyance carrying the goods of value exceeding 50,000/- should carry copy of documents, viz, invoice/bill of supply/delivery challan/bill of entry and a valid e-way bill, either in physical or in electronic form for verification.

ii. In case the person doesnt carry the mentioned documents, contravention of law takes place and accordingly section 129 (detention, seizure and release of goods and conveyances in transit) and section 130 (confiscation of goods or conveyances and levy of penalty) are invocable.

iii. Additionally non-furnishing of information in Part B of FORM GST EWB-01, except in case where the goods are transported for a distance of up to fifty kilometres within the State or Union territory, to or from the place of business of transporter to the place of business of the consignee or the consignor, as the case may be, tantamount to e-way bill not becoming a valid e-way bill.

D. Proceeding against section 129 of the CGST Act, 2017 has been initiated for every mistake, as stipulated in point no (ii) and (iii) above.

E. The Board, after due examination, in exercise of its power conferred under section 168 of the CGST Act, 2017 has issued the clarification for modification in procedure vide Circular No. 64/38/2018 GST dated 14th September, 2018, stated herein below:

i. In case a consignment of goods is accompanied by an invoice or other specified document and not an e-way bill, proceeding under section 129 of the Act may be initiated.

ii. Where a consignment of goods is accompanied by an invoice or other specified document and also an e-way bill, proceeding under section 129 of the Act may not be initiated, inter alia, in the following situations:

a. Spelling mistake of the consignor or the consignee but the GSTIN, wherever applicable, is correct;

b. Error in the pin-code but the address of the consignor or the consignee is correct, subject to the fact that validity of e-way bill should not be increased due to error in pin code;

c. Error in the address of the consignee to the extent that the locality and other details of the consignee are correct;

d. Error in one or two digits of the document number mentioned in the e-way bill;

e. Error in 4 or 6 digit level of HSN where the first 2 (two) digits of HSN are correct and the rate of tax mentioned is correct;

f. Error in one or two digits / characters of the vehicle number.

F. In case of the above situations, penalty of 500/- each, under section 125 of the CGST Act,2017 and the respective State GST Act, 2017 should be imposed ( 1,000/- under the IGST Act, 2017) in FORM GST DRC 07 for every consignment.

G. A record of all such consignments where provisions of section 129 of the Act have not been invoked for list of situations mentioned in points no E(II)(a) to EII(f) shall be sent by the proper officer to his controlling officer on a weekly basis.


Disclaimer: This publication contains information solely for general guidance and education purpose only. An endeavour to the best of the ability has been made to present the information of the above stated circular in a simple and accurate way along with an analysis for ease of understanding and information. It is neither a guidance note nor is a professional advice nor is intended to address any specific circumstance of any individual or entity. The undersigned does not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.


About theAuthor : CMA. Susanta Kumar Saha

A seasoned professional with around 24 years experience in Corporate Finance, Direct & Indirect taxation, Financial & Management Accounting, Fund Management, Budgeting, ERP Implementation in different sectors of industry.
Corporate trainer in Goods and Services Tax, implementation and compliance consultant, advisory and litigation management.

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