Rights & Procedures for E-Way Bill Vehicle Detention Under GST

Vehicle detention during goods transportation is a critical issue under GST, especially when e-way bill provisions are not followed. Businesses must be aware of their rights and obligations under the GST law, particularly Section 129 of the CGST Act, which governs the detention, seizure, and release of goods and vehicles.

𝐖𝐡𝐞𝐧 𝐂𝐚𝐧 𝐆𝐨𝐨𝐝𝐬 𝐨𝐫 𝐂𝐨𝐧𝐯𝐞𝐲𝐚𝐧𝐜𝐞 𝐁𝐞 𝐃𝐞𝐭𝐚𝐢𝐧𝐞𝐝?
As per Section 129(1):
“Notwithstanding anything contained in this Act, where any person transports or stores goods while in transit in contravention of GST provisions or rules, such goods and the conveyance used shall be liable for detention or seizure.”
These shall be released only:
(a) If the owner comes forward:
Pay penalty equal to 200% of the tax payable on such goods.
For exempted goods: Pay 2% of the value of goods or ₹25,000, whichever is lower.
(b) If the owner does not come forward:
Pay penalty equal to 50% of the value of goods or 200% of the tax payable, whichever is higher.
For exempted goods: Pay 5% of the value or ₹25,000, whichever is lower.
(c) Alternatively: Furnish a security equivalent to the amount under (a) or (b), in prescribed form and manner.

No detention or seizure can occur without serving an official order of detention or seizure to the person transporting the goods.

𝐓𝐢𝐦𝐞𝐥𝐢𝐧𝐞𝐬 𝐔𝐧𝐝𝐞𝐫 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟐𝟗
-Notice must be issued within 7 days from detention, specifying the penalty amount.
-Order must be passed within 7 days from the date of notice.
-Right to be Heard: No penalty can be imposed without providing an opportunity of being heard.
-On Payment: All proceedings are considered concluded.
-Failure to Pay Within 15 Days:

Goods/conveyance can be sold or disposed of to recover the penalty.

If goods are perishable or hazardous, the 15-day period may be shortened by the proper officer.

𝐊𝐞𝐲 𝐅𝐨𝐫𝐦𝐬 𝐈𝐬𝐬𝐮𝐞𝐝 𝐃𝐮𝐫𝐢𝐧𝐠 𝐃𝐞𝐭𝐞𝐧𝐭𝐢𝐨𝐧
𝐅𝐨𝐫𝐦 𝐍𝐚𝐦𝐞
𝐏𝐮𝐫𝐩𝐨𝐬𝐞
GST MOV-01:-Statement of owner, driver or person in charge of the vehicle GST MOV-02:-Order for physical verification and inspection of goods, conveyance or documents
GST MOV-03:-Order for extension of time beyond 3 days for inspection
GST MOV-04:-Physical verification report
GST MOV-05:-Release order
GST MOV-06:-Order of detention
GST MOV-07:-Notice specifying tax and penalty amount
GST MOV-08:-Bond for provisional release of goods/conveyance
GST MOV-09:-Order of demand of tax and penalty
GST MOV-10:-Notice for the confiscation of goods
GST MOV-11:-Order of confiscation of goods and conveyance and demand of tax, fine and penalty

As 𝐚 𝐓𝐚𝐱𝐩𝐚𝐲𝐞𝐫 𝐨𝐫 𝐓𝐫𝐚𝐧𝐬𝐩𝐨𝐫𝐭𝐞𝐫, you are entitled to:
-Receive all notices and orders in writing.
-Appeal the decision if the detention appears unjustified.