Section 129 of the GST Act addresses the issues of detention and seizure of goods in transit.

Section 68 of the CGST Act empowers authorities to inspect vehicles during transit, where they may request documents like the E-way Bill, invoices, etc.

Business owners may encounter situations where some of their transactions are intercepted by GST mobile squads during transit. To avoid such situations, it is essential to thoroughly check all fields of the invoice and the E-way Bill. Ensure that all required columns are properly filled, and the data on both the E-way Bill and the invoice match.

Some of the most common mistakes made are:

• Quantity/Value/ HSN not mentioned
• GSTIN of the receiver of goods not matching the GSTIN in the portal
• E-way Bill expired before the delivery of goods
• Bill-to-Ship-to transactions where computer operators make mistakes, causing mismatched data between the invoice and the E-way Bill.

Based on our practical experience from handling hundreds of cases, investing five minutes to check all documents before removing goods from the business place can save significant time and money.

If you encounter such a situation, always attempt to rectify the mistake and present the correct documentation to the officer along with a proper reply. The reply to the Show Cause Notice (SCN) can also be uploaded on the portal. While GST authorities may not offer much assistance once a notice under Section 129 is issued, rectifying the mistake and submitting a proper reply will help during the appeal process against penalties.

There are several judgments from various High Courts that may assist taxpayers during appeals to quash penalty orders. Appeals can be filed before the appellate authorities having jurisdiction over the place where the goods were detained, and where the penalty order was passed.