CBIC modifies Procedure for Interception of Conveyances for Inspection of goods in Movement, and Detention, Release and Confiscation of Such Goods and Conveyances

Sep 18, 2018 | by Avantis RegTech Legal Research Team

The Central Board of Indirect Taxes and Customs (CBIC) passed a Circular dated September 14, 2018, regarding the modified procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances.

The CBIC was in receipt of various representations regarding imposition of penalty in case of minor discrepancies in the details mentioned in the e-way bill although there are no major lapses in the invoices accompanying the goods in movement. The matter has been examined and in order to clarify this issue and to ensure uniformity in the implementation of the provisions of the law across the field formations, the CBIC has issued this Circular.

The Circular reiterates the requirement of Section 68 (Inspection of Goods in movement) of the Central Goods and Services Tax Act read with Rule 138A (Documents and devices to be carried by a person-in-charge of a conveyance) of the Central Goods and Services Tax Rules, 2017. The person in charge of conveyance carrying any consignment of goods of value exceeding Rs.  50,000 should carry a copy of documents and a valid e-way bill in physical and electronic form for verification. The Circular clarifies that in case a consignment of goods is accompanied by an invoice or any other specified document and not an e-way bill, proceedings under section 129 of the CGST Act may be initiated. In case a consignment of goods is accompanied with an invoice or any other specified document and also an e-way bill, proceedings under Section 129 of the CGST Act may not be initiated, inter alia, in the following situations:

a)      Spelling mistakes in the name 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 and the consignee mentioned is correct, subject to the condition that the error in the PIN code should not have the effect of increasing the validity period of the e-way bill;

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 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.

In case of the above situations, penalty to the tune of Rs. 500/- each under Section 125 of the CGST Act and the respective State GST Act should be imposed (Rs.1000/- under the IGST Act) in FORM GST DRC-07 for every consignment. A record of all such consignments where proceedings under Section 129 of the CGST Act have not been invoked in view of the situations listed in paragraph 5 above shall be sent by the proper officer to his controlling officer on a weekly basis.

[Circular No. 64/38/2018-GST]


URL: http://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular_No.64.pdf;jsessionid=721AE7BBCFDDFEB8E5BA11893825BBD4


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