GST Section 129 Detention: Government Cites Safeguards for Technical Errors

In a Rajya Sabha reply dated 11.08.2026, the Ministry of Finance stated that no instance of wrongful detention of vehicles under Section 129 of the CGST Act, 2017 for minor or clerical e-way bill errors had come to the Government’s notice. The reply provided State/UT-wise detention data for the last three financial years: 706 orders in 2023-24, of which 3 were set aside; 900 orders in 2024-25, with none set aside; and 472 orders in 2025-26, of which 1 was set aside. To strengthen accountability and prevent detention for technical or procedural lapses, the Government referred to Circular No. 41/15/2018-GST dated 13.04.2018, prescribing a standardized, documented and time-bound procedure for interception, inspection, detention and release. Circular No. 64/38/2018-GST dated 14.09.2018 addresses indiscriminate invocation of Section 129 for minor documentation errors, including certain bona fide clerical or technical mistakes, for which nominal penalties of ₹500 each under the CGST/SGST Act or ₹1,000 under the IGST Act are prescribed. The reply also stated that Section 129 contains timelines and procedures incorporating principles of natural justice.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
RAJYA SABHA
UN-STARRED QUESTION NO. 2629
ANSWERED ON – 11.08.2026

“WRONGFUL DETENTION OF VEHICLES UNDER GST”

2629. Shri Rajinder Gupta:

Will the Minister of FINANCE be pleased to state:

a. whether Government is aware of instances where vehicles are detained under Section 129 of the CGST Act for minor or clerical errors in e-way bills despite existing CBIC guidelines;

b. the number of detention orders passed under Section 129 during the last three years, State/UT-wise, along with the number of such orders subsequently set aside by appellate authorities or courts; and

c. whether Government proposes to strengthen accountability and issue further directions to prevent wrongful detention of vehicles for technical or procedural lapses, if so, the details thereof?

ANSWER

MINISTER OF STATE IN MINISTRY OF FINANCE

(SHRI PANKAJ CHAUDHARY)

a. No such instance has come to the notice of the Government.

b. The details of the detention orders issued under Section 129 of CGST Act, 2017 by Central Tax formations and such orders subsequently set aside by appellate authorities or courts during the last three Financial Years, State/UT-wise is given as Annexure-1 to 3.

c. Following measures have been undertaken to strengthen accountability and prevent wrongful detention of vehicles for technical or procedural lapses:-

i. Circular No. 41/15/2018-GST dated 13.04.2018 prescribes a standardized form-based procedure for interception, inspection, detention, and release of goods and conveyances, so that action under Section 129 of CGST Act, 2017 follows a documented and time-bound process. This process removes the discretion from field formation in regards to process followed after interception of conveyances.

ii. Circular No. 64/38/2018-GST dated 14.09.2018 was issued specifically to check indiscriminate invocation of Section 129 of CGST Act, 2017, for minor documentation errors. It clarifies that proceedings under Section 129 of CGST Act, 2017 need not be initiated where the lapse is a bona fide clerical/technical error, such as spelling mistakes in consignor/consignee name, minor errors in the vehicle number, incorrect PIN code, error in one or two digits of the document number, or non-mention of one of the two addresses in a bill-to-ship-to, transaction. In such cases, only a nominal penalty of ₹500 each under Section 125 of the CGST/SGST Act (₹1,000 under the IGST Act) is to be imposed.

iii. Section 129 of the CGST Act 2017 is a self-containing provision containing timelines and procedures to be followed along with the principles of natural justice, before any penalty under the said section is to be applied upon the contravention.

ANNEXURE-1

ANNEXURE as referred in reply to part (b) of Rajya Sabha Unstarred Question No. 2629 (to be answered on 11.08.2026)

ANNEXURE-2

ANNEXURE as referred in reply to part (b) of Rajya Sabha Unstarred Question No. 2629 (to be answered on 11.08.2026)

ANNEXURE-3

ANNEXURE as referred in reply to part (b) of Rajya Sabha Unstarred Question No. 2629 (to be answered on 11.08.2026)

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