GST -Circular - Communication - GST - GST TRADE NOTICE NO. 19/2018

GOVERNMENT OF INDIA: MINISTRY OF FINANCE : DEPARTMENT OF REVENUE OFFICE OF THE COMMISSIONER OF GST AND CENTRAL EXCISE, PUDUCHERRY GOUBERT AVENUE, (BEACH ROAD) PUDUCHERRY 605001 C. No. IV/16/01/2018- GST Dated: 09-05-2018 GST TRADE NOTICE NO. 19/2018 Sub: GST -Circular - Communication - Reg. The Central Board of Indirect Taxes Customs [CBIC] has issued GST Circular No. 41/15/2018 GST dated 13.04.2018 clarifying the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances 2018-GST dated 13.04.2018. The gist of the Circular is highlighted hereunder: 2. Section 68 of the Central Goods and Services Tax Act, 2017, (hereinafter referred to as CGST Act ), Rule 138 to 138D of the CGST Rules, 2017 and Sectioni29 and 130 of the CGST Act, 2017 provide i) for carrying document viz e-way bill generated before commencement of the movement of the consignment ii) interception by the proper officer at any place to verify the documents and for inspection of the goods iii) detention, seizure and release of goods and conveyances in transit iv) confiscation of goods or conveyances and imposition of penalty. 3. The following instruction as issued regarding the procedure to be followed in case of interception of conveyances for inspection of goods in movement and detention, seizure and release and confiscation of such goods and conveyances. (a) The jurisdictional Commissioner or an officer authorised by him for this purpose shall, by an order, designate an officer/officers as the proper officer/officers to conduct interception and inspection of conveyances and goods in the jurisdictional areas specified in such order. (b) The proper officer, empowered to intercept and inspect a conveyance may intercept any conveyance and verify documents and/or inspect goods and prima facie, no discrepancies are found, the conveyance shall be allowed to move further. An e-way bill No. may be available with the person in charge of the conveyance in the form of a printout, SMS or it may be written on an invoice. All these forms of having an e-way bill are valid. Wherever a facility exists to verify the e-way bill electronically the same shall be so verified, either by logging on to or the Mobile App or through SMS by sending EWBVER EWB NO to the Mobile No. 77382 99899 (For example EWBVER 120100231897) (c) For the purpose of verification of the e-way bill, interception and inspection of the conveyance and/or goods, the proper officer under Rule 138B of the CGST Rules shall be the officer who has been assigned the functions under sub-section (3) of Section 68 of the CGST Act, vide Circular No.3/3/2017 GST dated 05.07.2017. (d) Forms: The prescribed Forms are detailed hereunder:- (i) GST MOV-01: The proper officer shall record a statement of the person in charge of the conveyance in FORM GST MOV-01 where the person fails to produce any prescribed document. (ii) GST MOV-02: The proper officer shall issue an order for physical verification/inspection of the conveyance, goods and documents in FORM GST MOV-02. (iii) GST EWB-03 : The proper officer shall, within twenty four hours of the issuance of FORM GST MOV-02, prepare a report in Part A of Form GST EWB-03 and upload the same on the common portal. (iv) GST MOV-03 : Written permission in Form GST MOV-03 from the Commissioner or an officer authorised by him for extension of time beyond three working days for conclusion of the inspection proceeding. (v) GST MOV-04 : Report in Form GST MOV04 prepared by the proper officer after inspection. (vi) GST MOV-05: Release Order issued by the Proper Officer if there is no discrepancy and allow the conveyance to move further. (vii) GST MOV-06 : Detention Order under Section 129 of the CGST Act, issued by the Proper Officer in Form GST MOV - 06. (viii) GST MOV-7 : Notice served by the Proper Officer under Section 129(3) of the CGST Act, on the person in charge of the conveyance specifying the tax and penalty payable. (ix) GST MOV-8 : A Bond in Form GST Mov-8 when the owner of goods or the person authorised by him or any person other than the owner of the goods comes forward to get the goods and conveyance released by furnishing a security. (x) GST MOV-9: Where any objections are filed against the proposed amount of tax and penalty payable, the proper officer pass a speaking order in Form GST MOV- 09, quantifying the tax and penalty payable. (xi) 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. Where the proper officer is of the opinion that such movement of goods is being effected to evade payment of tax, he may directly invoke section 130 of the CGST Act by issuing a notice proposing to confiscate the goods and conveyance in Form GST MOV-10. Where the conveyance is used for carriage of goods or passengers for hire, the owner of the conveyance shall also be issued a notice under the third proviso to sub-section (2) of section 130 of the CGST Act, proposing to impose a fine equal to the tax payable on the goods being transported in lieu of confiscation of the conveyance. (xii) GST MOV-11: An Order of confiscation of goods and an order of confiscation of conveyance in Form GST MOV-11 shall be passed by the proper officer. The order in Form GST - MOV -11 shall be uploaded on the common and once an order of confiscation of goods is passed in Form GST MOV 11, the order in Form GST MOV-09 passed earlier with respect to the said goods shall be withdrawn. The order referred to above for goods and conveyance may be passed as a common order in the said Form GST MOV-11. (e) 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, if the tax, penalty or fine is not paid within the time specified in form GST MOV-11. (f) Suitable modifications in the time allowed for the service of notice or order for auction or disposal shall be done in the case of perishable and/or hazardous goods. (g) Whenever an order or proceedings under the CGST Act is passed by the proper officer, a corresponding order or proceedings shall be passed by him under the respective State or Union Territory GST Act and if applicable, under the Goods and Services Tax (Compensations to States) Act, 2017. Further sub-sections (3) and (4) of Section 79 of the CGST Act/respective State GST Acts may be referred to in case of recovery of arrears of Central tax/State tax/ Union territory tax. (h) The procedure narrated above shall be applicable mutatis mutandis for an order or proceeding under the IGST Act, 2017. (i) 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. (j) A summary of every 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. 4. This Trade Notice is being issued so as to sensitise the trade and field formations about the contents of the aforesaid circular and for complete details, the respective circular may please be referred in the CBEC's website www/cbec.gov.in. 5. The Trade Industry Associations/Chamber of Commerce are requested to bring the contents of the Trade Notice to the knowledge of all their Members for information and necessary action. (U. NIRANJAN) COMMISSIONER