It has increased the penalty amount and has done away with the payment of applicable taxes. The penalty amount required to be paid for the release of the goods and conveyances. The Finance Act,2021 w.e.f, has made the changes in the penalty. When the owner of the goods does not come forward for payment.Ģ00% of tax payable or 50% of the value of goods whichever is higherĥ% of the value of the goods or Rs.25000 whichever is lower. The goods and the conveyance shall be released on the payment of the penalty which is explained in the below table: When the owner of the goods comes forward for paymentĢ% of the value of the goods or Rs.25000 whichever is lower. To clarify things and for ensuring uniformity in the implementation of the provisions of the Act, CBDT has issued Circular No -GST dated as amended by Circular -GST dated and Circular No -GST dated, which provides the procedure for the interception of conveyances. Here, the question arises as to what constitutes the contravention of the provisions of the Act. Procedure for the interception of conveyances.(SOP) Rule 138 to 138D of the CGST Rules, 2017 lays down the detailed provisions relating to the E-way bills. The person in charge of a conveyance shall carry the invoice or bill of supply or delivery challan and in case of transportation of goods by road, shall also carry a copy of the e-way bill in physical form or in the electronic form. Statue expect the due documentation to avoid detention or seizure: When the goods are transported or stored while still in transit in contravention of the provisions of the Act, all such goods and conveyances shall be liable to detention or seizure. Let us move towards the detailed analysis of Section 129 and Section 130 of the CGST Act 2017. Confiscation is dependent on the seizure of the goods as no goods can be confiscated without being seized. It is a process which come before the confiscation of the goods.Ĭonfiscation is a procedure in which the seized articles are sold or disposed off by the order of the court. Seizure is a process of taking possession of the goods against the wish of the owner. Section 130 provides for the confiscation of the goods or conveyances and imposition of penalty.īefore diving any deeper in the said sections, let us first understand the difference between seizure and confiscation. Section 129 provides for the detention, seizure and release of goods and conveyances in transit while Goods and Services Tax Act has provided clear provisions for the detention, seizure and confiscation of goods and conveyances in transit.

Unlawful taking means of conveyance