Confiscation of goods or conveyances and levy of penalty [ Section 130 ] - GST Ready Reckoner - GST

Confiscation of goods or conveyances and levy of penalty Confiscation of goods or conveyances and levy of penalty Section 130 provides for confiscation of goods or conveyances and levy of penalty. The provisions of this section are summarised as under: If any person (i) supplies or receives any goods in contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (ii) does not account for any goods on which he is liable to pay tax under this Act; or (iii) supplies any goods liable to tax under this Act without having applied for registration; or (iv) contravenes any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (v) uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of this Act or the rules made thereunder unless the owner of the conveyance proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any, and the person in charge of the conveyance, then, all such goods or conveyances shall be liable to confiscation and the person shall be liable to penalty under section 122 . option to pay in lieu of confiscation (2) Whenever confiscation of any goods or conveyance is authorised by this Act, the officer adjudging it, shall give to the owner of the goods, an option to pay in lieu of confiscation, such fine as the said officer thinks fit. However, such fine leviable shall not exceed the market value of the goods confiscated, less the tax chargeable thereon. FORM GST MOV -10 serves as the notice for confiscation of goods conveyance Few Clarifications Circular No. 64/38/2018-GST clarifies that The non-furnishing of information in Part B of FORM GST EWB-01 amounts to the e-way bill becoming not a valid document for the movement of goods by road except in the case where the goods are transported for a distance of upto fifty kilometres within the State or Union territory to or from the place of business of the transporter to the place of business of the consignor or the consignee, as the case may be . This will also attracts provisions of section 130 relating to confiscation of goods .