Goods Vehicle Stopped during Transit

What Happened when Goods Vehicle Stopped during Transit?

In case company truck loaded with goods can be stopped and intercepted midway during transportation by a Officer?

The GST officer can demand the driver to Disclose Company Goods in Transit e-way bill copy. It is enough to have the e-way bill No & show that it is valid. However, Vehicle driver will be expected to give a physical copy of bill of entry or GST tax invoice or delivery challan. But, In case Vehicle driver has an e-Invoice, then a soft copy of the documents will also be sufficient.

If the tax invoice has Digital Signature, then also the Vehicle driver will be required to produce a physical copy. Merely showing a copy on WhatsApp will not be enough.

In case we think we can share a scanned copy of bill with the Vehicle driver so the Vehicle driver can take a printout of the digital copy & produce it when the GST officer asks for it, then it will not work.

Yes, there have been some judgments where the driver could not produce the bill even when it was developed, or the e-way was valid, or if no physical discrepancy could be found during verification, then you may exemption from paying penalty U/s 129.

According to Section 129(1)(b) of the GST Acts provides for release of the goods upon payment of tax & penalty equal to 50% of value of goods reduced by tax amount paid thereon in the case of taxable goods and in the case of exempted goods, even if the owner of the goods does not come forward to make payment of tax and penalty.

Procedure for detention of vehicle in GST

During the inspection & verification process the GST officer feels that goods have to be detained, GST officer may take the appropriate Actions: Pass a detention Via Form GST MOV- 06. A notice levying the tax & penalty Via Form MOV- 07

Releasing Goods Seized under GST Law

Any person who wishes to release the seized goods on a provisional basis can execute a bond for the value of the goods in FORM GST INS-04 & furnish security in form of a bank guarantee equivalent to the amount of applicable tax, interest & penalty payable. 

Difference between detention & seizure

Not allowing access to the owner of the goods by a legal notice/ order is called detention. But Ownership of goods still lies with owner. It is issued when it is suspected that goods are liable to confiscation. Seizure is taking over of actual possession of the goods by GST dept.

We should Remember & knowing rules and following them can make all the difference.

We are GST Experts. We are keep you updated at all times so you stay informed and can make the right decisions. if you have any questions about GST and compliance issues. Than contract us.

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The information / articles & any relies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do noy constitute legal advice or legal opinions. The information / articles and any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, i can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information / articles contained without first seeking the advice of a practicing professional.