Circular No. 49/23/2018-GST
F. No. CBEC/20/16/03/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 21st June, 2018
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All) / The Principal Directors General / Directors General(All)
Subject: Modifications to the procedure for interception of conveyances for inspectionof goods in movement, and detention, release and confiscation of such goods andconveyances, as clarified in Circular No. 41/15/2018-GST dated 13.04.2018 –reg.
Circular No. 41/15/2018-GST dated 13.04.2018 was issued to clarify the procedure forinterception of conveyances for inspection of goods in movement, and detention, release andconfiscation of such goods and conveyances.
2. In order to clarify certain issues regarding the specified procedure in this regard and inorder to ensure uniform implementation of the provisions of the CGST Act across all the fieldformations, the Board, in exercise of the powers conferred under section 168 (1) of theCentral Goods and Services Tax Act, hereby issues the following modifications to the saidCircular:-
(i) In para 2 (e) of the said Circular, the expression “three working days” may be
replaced by the expression “three days”;
(ii) The statement after paragraph 3 in FORM GST MOV-05 should read as: “In
view of the above, the goods and conveyance(s) are hereby released on
(DD/MM/YYYY) at ____ AM/PM.”3.0 Further, it is stated that as per rule 138C (2) of the Central Goods and Services TaxRules, 2017, where the physical verification of goods being transported on any conveyance
has been done during transit at one place within a State or Union territory or inany otherState or Union territory, no further physical verification of the said conveyance shall becarried out again in the State or Union territory, unless a specific information relating toevasion of tax is made available subsequently. Since the requisite FORMS are not availableon the common portal currently, any action initiated by the State tax officers is not beingintimated to the central tax officers and vice-versa, doubts have been raised as to theprocedure to be followed in such situations.
3.1 In this regard, it is clarified that the hard copies of the notices/orders issued in thespecified FORMS by a tax authority may be shown as proof of initiation of action by a taxauthority by the transporter/registered person to another tax authority as and when required.
3.2 Further, it is clarified that only such goods and/or conveyances should be
detained/confiscated in respect of which there is a violation of the provisions of the GST Actsor the rules made thereunder.Illustration: Where a conveyance carrying twenty-five consignments is interceptedand the person-in-charge of such conveyance produces valid e-way bills and/or otherrelevant documents in respect of twenty consignments, but is unable to produce the
same with respect to the remaining five consignments, detention/confiscation can bemade only with respect to the five consignments and the conveyance in respect ofwhich the violation of the Act or the rules made thereunder has been established bythe proper officer.
4. It is requested that suitable trade notices may be issued to publicise the contents ofthis Circular.
5. Difficulties, if any, in implementation of the above instructions may be brought to thenotice of the Board at an early date. Hindi version will follow.