Clarifying the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances.

Circular No.: 41/15/2018-GST
Date of Circular: 13th April 2018
Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 68: Inspection of goods in movement
  • Section 129: Detention, seizure and release of goods in transit
  • Section 130: Confiscation of goods and conveyance
  • Section 168(1): Instructions for uniform implementation
• CGST Rules, 2017:
  • Rules 138 to 138D: E-way bill provisions
  • Rule 138B: Verification of documents
• IGST Act, 2017:
  • Section 20 (read with CGST Act provisions)

Summary of Circular:

This circular prescribes the standard operating procedure (SOP) for interception, inspection, detention, and confiscation of goods and conveyance in transit, with prescribed formats for each stage to ensure uniform enforcement.

1. Authorization & Interception:
   • Proper officers are designated by jurisdictional Commissioners.
   • Officers may intercept conveyances and demand documents like invoice, delivery challan, and e-way bill in any acceptable form (physical, electronic, SMS, etc.).

1. Inspection and Verification:
   • On suspicion or non-production of documents, the officer:
     • Records a statement (FORM GST MOV-01)
     • Issues inspection order (FORM GST MOV-02)
     • Completes inspection within 3 working days (extendable with permission in FORM GST MOV-03)
     • Records findings in GST MOV-04
     • Uploads Part A & B of EWB-03 on portal

1. Release or Detention Decision:
   • If no discrepancy: Issue release order (FORM GST MOV-05)
   • If discrepancy: Issue detention order (FORM GST MOV-06) and notice (FORM GST MOV-07)
   • Allows payment or furnishing of security (via FORM GST MOV-08) to release goods

1. Finalization of Proceedings:
   • On payment of tax/penalty: Order of demand issued (FORM GST MOV-09), entry in liability register, and goods released
   • On objection or default: Confiscation proposed (FORM GST MOV-10) and finalized (FORM GST MOV-11)

1. Special Situations:
   • Confiscation applies when evasion of tax is evident or no response within 7 days of MOV-06
   • Orders under CGST must be mirrored under SGST/UTGST and Compensation Acts
   • For unregistered persons, temporary IDs are created for demand recording

1. Public Auction and Recovery:
   • If no compliance within time granted, goods/conveyance are sold via public auction
   • Special timelines for perishable/hazardous goods

1. Formats and Recordkeeping:
   • Circular provides standard formats (GST MOV-01 to MOV-11 and DRC-07) for all actions to maintain consistency across jurisdictions

Source: Circular No.: 41/15/2018-GST