Central Tax Circulars

CGST Circular 64/2018

To,

The Principal Chief Commissioners / Chief Commissioners / Principal
Commissioners /Commissioners of Central Tax (All) / The Principal
Directors General / Directors General (All)

Madam/Sir,

Subject: Modification of the procedure for interception of conveyances
for inspection of goods in movement, and detention, release and
confiscation of such goods and conveyances, as clarified in Circular Nos.
41/15/2018-GST dated 13.04.2018 and 49/23/2018-GST dated 21.06.2018 –
regarding

1) Kind attention is invited to Circular No. 41/15/2018-GST dated 13th
April, 2018 as
amended by Circular No. 49/23/2018-GST dated 21st June, 2018 vide which
the procedure for interception of conveyances for inspection of goods in
movement, and detention, release and confiscation of such goods and
conveyances was specified.

2) Various representations have been received regarding imposition of
penalty in case of
minor discrepancies in the details mentioned in the e-way bill although
there are no major lapses in the invoices accompanying the goods in
movement. The matter has been examined. In order to clarify this issue
and to ensure uniformity in the implementation of the provisions of the
law across the field formations, the Board, in exercise of its powers
conferred under section 168 of the Central Goods and Services Tax Act,
2017 (hereinafter referred to as ‘the CGST Act’) hereby clarifies the
said issue hereunder.

3) Section 68 of the CGST Act read with rule 138A of the Central Goods
and Services Tax
Rules, 2017 (hereinafter referred to as ‘the CGST Rules’) requires that
the person in charge of a conveyance carrying any consignment of goods of
value exceeding Rs 50,000/- should carry a copy of documents viz.,
invoice/bill of supply/delivery challan/bill of entry and a valid e-way
bill in physical or electronic form for verification. In case such person
does not carry the mentioned documents, there is no doubt that a
contravention of the provisions of the law takes place and the provisions
of section 129 and section 130 of the CGST Act are invocable. Further, it
may be noted 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 as per Explanation (2) to rule 138(3) of the
CGST Rules, 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.

4) Whereas, section 129 of the CGST Act provides for detention and
seizure of goods and
conveyances and their release on the payment of requisite tax and penalty
in cases where such goods are transported in contravention of the
provisions of the CGST Act or the rules made thereunder. It has been
informed that proceedings under section 129 of the CGST Act are being
initiated for every mistake in the documents mentioned in para 3 above.
It is clarified that in case a consignment of goods is accompanied by an
invoice or any other specified document and not an e-way bill,
proceedings under section 129 of the CGST Act may be initiated.

5) Further, in case a consignment of goods is accompanied with an
invoice or any other
specified document and also an e-way bill, proceedings under section 129
of the CGST Act may not be initiated, inter alia, in the following
situations:

a) Spelling mistakes in the name of the consignor or the consignee but
the GSTIN, wherever
applicable, is correct;

b) Error in the pin-code but the address of the consignor and the
consignee mentioned is
correct, subject to the condition that the error in the PIN code should
not have the effect of increasing the validity period of the e-way bill;

c) Error in the address of the consignee to the extent that the
locality and other details of the
consignee are correct;

d) Error in one or two digits of the document number mentioned in the
e-way bill;

e) Error in 4 or 6 digit level of HSN where the first 2 digits of HSN
are correct and the rate
of tax mentioned is correct;

f) Error in one or two digits/characters of the vehicle number.

6) In case of the above situations, penalty to the tune of Rs. 500/-
each under section 125 of
the CGST Act and the respective State GST Act should be imposed
(Rs.1000/- under the IGST Act) in FORM GST DRC-07 for every consignment.
A record of all such consignments where proceedings under section 129 of
the CGST Act have not been invoked in view of the situations listed in
paragraph 5 above shall be sent by the proper officer to his controlling
officer on a weekly basis.

7) Difficulty, if any, in implementation of this Circular may please be
brought to the notice
of the Board. Hindi version would follow.