Modification of the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular Nos. 41/15/2018-GST dated 13.04.2018 and 49/23/2018-GST dated 21.06.2018 – regarding

Circular No.: 64/38/2018-GST
Date of Circular: 14th September 2018
Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 68: Inspection of goods in movement
  • Section 129: Detention and seizure of goods
  • Section 130: Confiscation of goods and conveyance
  • Section 125: General penalty
  • Section 168(1): Power to issue instructions
• CGST Rules, 2017:
  • Rule 138A & Explanation (2) to Rule 138(3): E-way bill documentation

Summary of Circular:

This circular modifies the procedure prescribed in Circulars 41/15/2018-GST and 49/23/2018-GST by clarifying when minor errors in e-way bills do not warrant full detention and seizure under Section 129 of the CGST Act.

1. Mandatory Documents for Goods in Transit:
   • A consignment exceeding ₹50,000 must be accompanied by:
     • Invoice/Bill of supply/Delivery challan/Bill of entry
     • Valid e-way bill (physical/electronic)
   • If these are not carried, it’s a clear contravention, attracting Section 129/130 proceedings.
   • Failure to fill Part B of the e-way bill invalidates it, except when distance is within 50 km for transporter’s movement.
2. No Detention for Minor Discrepancies in E-Way Bill:
   If the consignment carries both invoice and e-way bill, Section 129 should not be invoked for the following minor errors:
   • (a) Spelling mistakes in consignor/consignee name (GSTIN correct)
   • (b) Incorrect PIN code (address otherwise correct and PIN error does not extend validity period)
   • (c) Minor address error (locality and other details are correct)
   • (d) 1–2 digit mistake in document number
   • (e) HSN error (first 2 digits correct and tax rate correct)
   • (f) 1–2 digit/character mistake in vehicle number
3. Penalty for Minor Mistakes:
   • Instead of detention, a general penalty of ₹500 each under CGST and SGST Acts (₹1000 under IGST) is to be imposed via FORM GST DRC-07.
4. Weekly Reporting Requirement:
   • Officers must report such cases where Section 129 proceedings were not initiated (due to minor mistakes) to their controlling officer weekly.

Source: Circular No.: 64/38/2018-GST