Procedure for Interception, Detention, and Confiscation of Goods in Movement: Circular No. 41/15/2018-GST
<p><span>Issued by the Ministry of Finance on 13th April 2018, Circular No. 41/15/2018-GST outlines the detailed procedure for the interception, detention, release, and confiscation of goods and conveyances under the Central Goods and Services Tax (CGST) Act, 2017. Here's a summary of the key highlights:</span></p><p><span><strong>1. Interception and Verification</strong></span></p><ul><li><span>As per Section 68 of the CGST Act, the person in charge of a conveyance carrying goods of value exceeding a specified amount must carry prescribed documents.</span></li><li><span>Rules 138 to 138D of the CGST Rules detail provisions relating to e-way bills. An e-way bill must be generated before the movement of goods by road.</span></li></ul><p><span><strong>2. Inspection and Detention Process</strong></span></p><ul><li><span>Proper officers are designated to conduct interception and inspection of conveyances and goods.</span></li><li><span>Interception can lead to the verification of documents and inspection of goods. The person in charge must produce the documents, and the officer verifies them.</span></li><li><span>If discrepancies are found, the officer can detain the goods and conveyance.</span></li></ul><p><span><strong>3. Documentation and Reporting</strong></span></p><ul><li><span>Various forms (GST MOV-01 to GST MOV-11) are prescribed for recording the statements, issuing orders, and reporting the inspection, detention, and release processes.</span></li><li><span>FORM GST MOV-02 is used for ordering physical verification of conveyance and goods, while FORM GST MOV-06 is issued for detention under Section 129 of the CGST Act.</span></li></ul><p><span><strong>4. Resolution and Release</strong></span></p><ul><li><span>If no discrepancies are found, the conveyance is released immediately using FORM GST MOV-05.</span></li><li><span>If discrepancies are found, a detention order (FORM GST MOV-06) and a notice (FORM GST MOV-07) are issued. The owner can pay the applicable tax and penalty or furnish a bond with a bank guarantee to release the goods and conveyance.</span></li></ul><p><span><strong>5. Confiscation and Penalties</strong></span></p><ul><li><span>If the tax and penalty are not paid within seven days, the proper officer can initiate confiscation proceedings under Section 130 of the CGST Act.</span></li><li><span>Confiscation orders (FORM GST MOV-11) are issued, and the goods and conveyance are auctioned if the owner does not come forward to make the payment.</span></li></ul><p><span><strong>Conclusion</strong> Circular No. 41/15/2018-GST provides a clear and comprehensive procedure for the interception, detention, and confiscation of goods in movement to ensure compliance with GST laws. By following these guidelines, businesses can avoid disruptions in their supply chain and adhere to the legal requirements.</span> <a href="https://cms.plasament.com/storage/circular-no41.pdf">circular_no.41</a><br> </p>