Circular No. 41/15/2018

The Circular prescribes the procedure for interception of conveyance for inspection of goods in movement and detention,

confiscation and release of goods and conveyance.

The Jurisdictional commissioner or officer authorised by him shall designate an officer to conduct inspection of goods in

a conveyance.

The person in-charge shall produce the documents related to goods and conveyance.

The officer shall verify the documents and where no discrepancies are found – Conveyance shall be allowed to move

further.

The proper officer shall verify the validity of E-Way bill No. which the person in charge of the conveyance will be

carrying it in the form of printout or SMS or Written on Invoice.

Where person in charge of vehicle fails to produce any document or where the officer intends to undertake inspection,

he shall :

Record a statement of person in charge in Form GST MOV-01

Shall issue order for physical verification of Conveyance, goods and documents in Form GST MOV – 02

Shall prepare report in PART A of Form GST EWB-03 within 24 hrs of issuance of GST MOV -02

Shall conclude the inspection proceedings within 3 working days from date of issuance of Form GST MOV-02

Extension from Commissioner / officer authorised by him can be obtained in Form GST MOV – 03 for extending

inspection beyond 3 working days

Report of Physical verification shall be prepared by the officer in FORM GST MOV-04 and a copy be served to

person in-charge of conveyance.

The Proper officer shall record on common portal, the final report in Part B of form GST EWB-03 within 3 days of

such verification.

Where no discrepancies are found after inspection, the officer shall issue a release order in Form GST MOV – 05 and

allow the conveyance to move further.

Where the officer is of opinion that conveyance is to be detained, he shall issue to the person in charge:

Order of detention in Form GST MOV-06 &

Notice in Form GST MOV-07 specifying the tax and penalty payable

T a x A l e r t s 15th April 2018

Circular Update

Where the owner of goods or any person authorised by him comes forward to make payment of tax & Penalty, then

the Proper officer may release the goods and conveyance by an order in Form GST MOV-05.

An order in form GST MOV-09 shall be uploaded on common portal and demand accruing from proceeding shall be

added in electronic liability ledger and payment shall be credited by debiting Electronic cash or credit ledger.

Where the owner of goods comes forward to collect the goods and conveyance by furnishing a security, shall do so

after obtaining a bond in Form GST MOV-08 along with a bank guarantee equal to amount payable. The officer shall

issue order in Form GST MOV -05 and shall adjust the security provided against the demand arising from such

proceedings.

Where objection is filed against the proposed demand of tax and penalty, the officer shall consider such objections

and shall pass a speaking order in Form GST MOV-09 quantifying the tax and penalty.

Where proposed tax and penalty is not paid within 7 days from the date of issue of order of detention in Form GST

MOV-06, action shall be initiated immediately by serving a notice in Form GST MOV-10 proposing confiscation of

goods and conveyance and imposing penalty.

Where proper officer is of the opinion that such movement of goods is effected to evade payment of tax, he may

directly issue notice of proposed confiscation of goods and conveyance in form GST MOV-10.

The quantum of tax, fine in lieu of confiscation and penalty shall be clearly specified.

Where conveyance is used for carriage of goods or passengers for hire, the owner of conveyance shall be issued a

notice proposing to impose fine equal to tax payable on goods being transported in lieu of confiscation of

conveyance.

Opportunity of being heard shall be given before passing order of confiscation

Confiscation order shall be passed in form GST MOV-11 after taking into consideration the objections filed by the

person in charge of goods / conveyance. Once Form GST MOV-11 is issued, FORM GST MOV-09 shall be withdrawn.

Once the order is passed, the title of such goods shall be transferred to Central Govt. The order shall provide a time

limit not exceeding 3 months to pay the tax, penalty and fine imposed. The form shall be uploaded on common portal

& demand accrued shall be added up in Electronic credit ledger.

In case neither owner nor any person on behalf of the owner of goods and conveyance come forward to make

payment of tax, penalty and fine imposed within time specified in FORM GST MOV-11, the proper officer shall

auction the goods.

Modification in time for service of notice or order or disposal shall be allowed in case of perishable and Hazardous

goods.

Temporary ID shall be created for unregistered persons by the officer and demand of Tax, Penalty and Interest shall

be created in Electronic Credit ledger.

Summary of every order in GST MOV-09 and GST MOV-11 shall be uploaded electronically in form GST DRC-07 on

common portal.

Summary of various forms prescribed in the circular

S.No Form Prescribed Purpose Person responsible of issuing/ filing

the form

1. GST MOV- 01 Recording statement of Person in charge of Vehicle Officer intercepting the vehicle

2. GST MOV- 02 Order for physical verification of Conveyance, goods

and documents Officer intercepting the vehicle

3. GST MOV- 03

Approval for Extending inspection beyond 3 working

days

Officer intercepting the vehicle have to

get it approved from commissioner

4. GST MOV- 04 Report of Physical verification Officer intercepting the vehicle

5. GST MOV- 05 Order for release of goods on payment of liability by

registered person or person in charge of the vehicle Officer intercepting the vehicle

6. GST MOV- 06 Order for Detention of goods Officer intercepting the vehicle

7. GST MOV- 07 Order demanding tax liability, interest and penalty Officer intercepting the vehicle

8. GST MOV- 08 Furnishing Bond along with Bank Guarantee Registered person (owner of Goods)

9. GST MOV- 09 Speaking order after considering objection filed by

the Person in charge of vehicle or registered person Officer intercepting the vehicle

10. GST MOV- 10 Order for Confiscation of Goods Officer intercepting the vehicle

11. GST MOV- 11 Confiscation order passed after considering

objections filed by the registered person Officer intercepting the vehicle

Circular No. 42/16/2018

The circular prescribes the procedure for recovery of arrears under existing laws and reversal of inadmissible input

credit carried forward through form TRAN-1

Nature Situation Legal Provision Impact Process

Arrear of wrongly availed CENVAT credit

Where any credit which is

recoverable due to proceeding of

appeal, review or reference

relating to claim of CENVAT credit

has been initiated before, on after

appointed day unless recovered

under existing law.

Tax shall be recovered u/s

142(6)(b) of CGST

Act,2017

To be recovered under

CGST Act, 2017 and this

amount will not be

allowed as input tax credit

under GST.

The amount will be

added in Part 2 of

Electronic Liability

register (GST PMT-01)

and will be debited from

electronic cash/ credit

ledger

Recovery of CENVAT credit carried forward wrongly

Credit of excise duty or service tax

inadmissible u/s 140 shall not be

allowed to transfer.

Tax shall be recovered u/s

142(8)(a) of CGST Act,

2017

To be recovered under

CGST Act, 2017 and this

amount will not be

allowed as input tax credit

under GST.

The amount will be

added in Part 2 of

Electronic Liability

register (GST PMT-01)

and will be debited from

electronic cash/ credit

ledger

Recovery of arrears of Excise duty and Service tax

Any tax, interest, fine or penalty is

recoverable in pursuance of

assessment or adjudication

proceedings initiated before, on

after appointed day unless

recovered under existing law.

Tax shall be recovered u/s

142(8)(a) of CGST Act,

2017

To be recovered under

CGST Act, 2017 and this

amount will not be

allowed as input tax credit

under GST.

The amount will be

added in Part 2 of

Electronic Liability

register (GST PMT-01)

and will be debited from

electronic cash/ credit

ledger

Where any output duty or tax is

recoverable due to proceeding of

appeal, review or reference

relating to output duty or tax

before, on after appointed day

unless recovered under existing

law.

Tax shall be recovered u/s

142(7)(a) of CGST Act,

2017

To be recovered under

CGST Act, 2017 and this

amount will not be

allowed as input tax credit

under GST.

The amount will be

added in Part 2 of

Electronic Liability

register (GST PMT-01)

and will be debited from

electronic cash/ credit

ledger

Recovery of arrears due to revision of returns.

Any tax liability which arise due to

revision of any return under

Central excise or service tax is filed

after July 1,2017

Tax shall be recovered u/s

142(9)(a) of CGST Act,

2017

To be recovered under

CGST Act, 2017 and this

amount will not be

allowed as input tax credit

under GST.

Make payment of Excise

duty or service through

ICEGATE portal

T a x A l e r t sCircular UpdateSummary of various forms prescribed in the circularCircular No. 42/16/2018