Detention and seizure of goods in transit Section 129 of the GST Act deals with detention and seizure of consignment in transit.
Section 68 (2) of the CGST Act allows officers to stop and search vehicles moving on the road and while during transit, sale etc., they can demand production of E-way Bill or any other document.
Business owners Also Read Unlocking GST input credit: A lot of businesses face situations where a few part of their deals are caught by GST mobile squads somewhere enroute. To eliminate such issues, we should properly verify all the fields in the invoice and E-way Bill. All mandatory fields are filled in correctly and data on both E-way Bill as well on Invoice match.
Among the most frequent mistakes are:
Quantity/Value/ HSN not mentioned
GSTIN of the recipient is not matching with portal served GSTIN.
E way Bill lapsed before reaching the goods
Bill-to-Ship-to supplies where operators fail to enter the data correctly which leads to inaccuracies between the invoice and the E-way Bill.
In our own experience dealing with hundreds of matters, spending that extra five minutes to review all paperwork and ensure it is accurate before you take goods out from a business premises can save you a whole load of time and money.
If you are faced with this situation, always try to correct the error, and provide the officer with the proper paperwork so that you may be given an opportunity to respond. The response to the Show Cause Notice (SCN) can also be uploaded on to the portal. GST authorities might not be too cooperative once a Section 129 notice is served, however, rectifying the error and replying in a correct manner can help during an appeal against the penalties.
There are several High courts judgement which might help the taxpayers in their appeal to get cancel such penalty order. APPEAL – Can be filed before the appellate authorities in whose jurisdiction the goods were seized and where the penalty order was issued.
Call Us
Whatsapp