Modification of Procedure for Interception and Inspection of Goods: Circular No. 64/38/2018-GST
<p><span>The Central Board of Indirect Taxes and Customs (CBIC) issued Circular No. 64/38/2018-GST on 14th September 2018, to modify the procedure for interception of conveyances for the inspection of goods in movement, and detention, release, and confiscation of such goods and conveyances. Here are the key highlights:</span></p><p><span><strong>1. Clarification on Minor Discrepancies</strong></span></p><ul><li><span>Various representations were received regarding penalties for minor discrepancies in e-way bill details while the invoices are accurate.</span></li><li><span>The circular clarifies that penalties will only be imposed for significant discrepancies, while minor errors such as spelling mistakes or small numerical errors in the e-way bill will not lead to detention and seizure.</span></li></ul><p><span><strong>2. Required Documents for Goods Movement</strong></span></p><ul><li><span>As per Section 68 of the CGST Act and Rule 138A of the CGST Rules, the person in charge of a conveyance must carry an invoice, bill of supply, delivery challan, bill of entry, and a valid e-way bill.</span></li><li><span>Non-furnishing of information in Part B of FORM GST EWB-01 renders the e-way bill invalid for road transport, except for short distances within the state.</span></li></ul><p><span><strong>3. Conditions for Initiating Proceedings under Section 129</strong></span></p><ul><li><span>Proceedings under Section 129 of the CGST Act can be initiated for missing e-way bills, but will not be initiated for minor errors such as:</span><ul><li><span>Spelling mistakes in the consignor/consignee name (if GSTIN is correct)</span></li><li><span>Minor errors in the pin-code (if address is correct)</span></li><li><span>Minor errors in the consignee's address</span></li><li><span>Minor errors in the document number</span></li><li><span>Errors in 4 or 6 digit level HSN (if the first 2 digits are correct and the tax rate is correct)</span></li><li><span>Minor errors in vehicle number</span></li></ul></li></ul><p><span><strong>4. Penalty for Minor Discrepancies</strong></span></p><ul><li><span>For minor discrepancies, a penalty of Rs. 500 each under Section 125 of the CGST Act and the respective State GST Act will be imposed, totaling Rs. 1000 under the IGST Act for each consignment.</span></li></ul><p><span><strong>5. Weekly Reporting</strong></span></p><ul><li><span>Proper officers must send a record of consignments with minor discrepancies, where Section 129 proceedings were not invoked, to their controlling officers on a weekly basis.</span> <a href="https://cms.plasament.com/storage/circular-no64.pdf">circular_no.64</a><br> </li></ul>