Ref: Circular No. 41/15/2018 –GST Dt.13th April 2018
Government has clarified procedure and introduced Forms through above circular for ON ROAD CHECKING OF GOODS moved within or interstate with a value more than Rs.50,000/- (which is also subject to checking).
I have tried to simplify the procedure given in said circular at each stage:
Page Contents
PRE STAGE 1:
Under Rule 138B a Proper Officer can intercept the moving Goods in transit if he wishes so or he has any adverse pre information for moving of goods illegally.
The officer has a web site verification through putting your E Way Bill No. on http://mis.ewaybillgst.gov.in or the Mobile App or through SMS by sending EWBVER <EWB_NO> to the mobile number 77382 99899 (For e.g. EWBVER 120100231897)
Where the person in charge of the conveyance fails to produce any prescribed document or where the proper officer intends to undertake an inspection, When Officer intercepted the Vehicle –
Stage 1- Form GST Mov 01 – Statement Recording:
This is first stage at the time of checking goods in transit when Officer is not satisfied with the documents produced and it’s matching with goods or if he is not able to explain or produce proper documents then “STATEMENT WILL BE RECORDED BY OFFICER OF CONVEYANCE IN CHARGE – IN GST MOV 01.
Stage 2- Form GST Mov 02 – Issue Of Order:
In addition to Statement Recorded, Officer shall issue an Order for physical verification of goods in vehicle as well where he will park vehicle under inspection and to allow inspection in Form-GST MOV 02.
Stage 3- Form GST Ewb 03 –Preparation Of Report And Upload:
A report WITHIN 24 HOURS shall be prepare and up load on common portal by the said officer in form PART A OF GST EWB 03.
Stage 4- Form GST Mov 03 –Extension Of Time:
Within 3 working days officer has to conclude the proceedings and if he is not able to close due to nature or quantity of goods the inspection cannot be conclude within 3 working days then it can be permitted by Commissioner for further more days then commissioner will issue written permission in GST MOV 03.
Stage 5- Form GST Mov 04 – Physical Verification Report:
On completion of the physical verification/inspection of the conveyance and the goods in movement, the proper officer shall prepare a report of such physical verification in FORM GST MOV-04 and serve a copy of the said report to the person in charge of the goods and conveyance. The proper officer shall also record, on the common portal, the final report of the inspection in Part B of FORM GST EWB-03 within three days of such physical verification/inspection.
Up To Step 5 Procedure Is Common
Then Following Situations May Arrive
1. Goods Found Correct As Per E Way Bill
2. Goods Found Not Correct As Per E Way Bill Or Without E Way Bill
Goods Found Correct As Per E Way Bill:
Stage 6- Form GST Mov 05 – Release Of Goods:
If no discrepancy found then goods will be released by form GST MOV 05 and allow to conveyance move further.
Goods Found Not Correct As Per E Way Bill Or Without E Way Bill
If goods confiscated and detained as empowered u/s 129 of CGST Act, 2017 by Officer
Stage 1 – Detention Order – GST Mov 6:
Officer will issue an Order in Form GST MOV 06 for “CONFISCATION OF GOODS”.
Stage 2 – Notice For Demand – GST Mov 7:
A notice in FORM GST MOV-07 in accordance with the provisions of sub-section (3) of section 129 of the CGST Act, specifying the tax and penalty payable. The said notice shall be served on the person in charge of the conveyance.
NOW AT STAGE 2 TWO SITUATIONS MAY ARISE ONE WHEN DEMAND PAID & GOODS RELEASED OR DEMAND NOT PAID AND GOODS DETAINED:
ONE IF DEMAND PAID:
Stage 1 – Release Of Goods Order GST Mov 05:
Where the owner of the goods or any person authorized by him comes forward to make the payment of tax and penalty as applicable under clause (a) of sub-section (1) of section 129 of the CGST Act, Goods shall be released and GST MOV 05 will be issued.
Stage 2 – Up Load Of Demand And Discharge By Order GST Mov 08 & Gst Mov 09:
Assessee Electronic Credit Ledger shall be up loaded by Order at Common Portal through Form GST MOV 09 FOR accruing demand by debiting Electronic Credit Ledger (ECL) and paid by crediting ECL.
OR Bank Guarantee/Bond in GST MOV 08 can also be given to officer and he will allow to move conveyance and will release goods u/s 129(1)(a) or (b) of CGST Act, 2017
Second If Demand Not Paid:
Stage 1 – When Demand Puts In Dispute By Supplier GST Mov 09 And Speaking Order Accepted :
Where any objections are filed against the proposed amount of tax and penalty payable, the proper officer shall consider such objections and thereafter, pass a speaking order in FORM GST MOV-09, quantifying the tax and penalty payable. On payment of such tax and penalty, the goods and conveyance shall be released forthwith by an order in FORM GST MOV-05.
The order in FORM GST MOV-09 shall be uploaded on the common portal and the demand accruing from the order shall be added in the electronic liability register and, upon payment of the demand, such register shall be credited by either debiting the electronic cash ledger or the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act.
Stage 2 – When Demand Puts In Dispute By Supplier GST Mov 10 :
In case the proposed tax and penalty are not paid within seven days from the date of the issue of the order of detention in FORM GST MOV-06, action under section 130 of the CGST Act shall be initiated by serving a notice in FORM GST MOV-10, proposing confiscation of the goods and conveyance and imposition of penalty.
No order for confiscation of goods or conveyance, or for imposition of penalty, shall be issued without giving the person an opportunity of being heard.
Stage 3 – When Goods Confiscated GST Mov 11 :
An order of confiscation of goods shall be passed in FORM GST MOV-11 AND upload at portal, after taking into consideration the objections filed by the person in charge of the goods (owner or his representative), and the same shall be served on the person concerned.
In the said order, a suitable time not exceeding three months shall be offered to make the payment of tax, penalty and fine imposed in lieu of confiscation and get the goods released.
Stage 4 – When Goods Confiscated And No One Come To Discharge Liability:
In case neither the owner of the goods nor any person other than the owner of the goods comes forward to make the payment of tax, penalty and fine imposed and get the goods or conveyance released within the time specified in FORM GST MOV-11, the proper officer shall auction the goods and/or conveyance by a public auction and remit the sale proceeds to the account of the Central Government.
Suitable modifications in the time allowed for the service of notice or order for auction or disposal shall be done in case of perishable and/or hazardous goods.
Demand of any tax, penalty, fine or other charges shall be added in the electronic liability ledger of the person concerned. Where no electronic liability ledger is available in case of an unregistered person, a temporary ID shall be created by the proper officer on the common portal and the liability shall be created therein. He shall also credit the payments made towards such demands of tax, penalty or fine and other charges by debiting the electronic cash ledger of the concerned person.
A summary of every order in FORM GST MOV-09 and FORM GST MOV-11 shall be uploaded electronically in FORM GST-DRC-07 on the common portal.
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