PROCEDURE RELATING TO E-WAY BILL – COMPLETE VIEW

PROCEDURE RELATING TO E-WAY BILL –
COMPLETE VIEW

WHEN TO ISSUE E-WAY BILL

E-Way bill will be generated when there is a movement of goods in a vehicle/conveyance of value more than Rs.50,000 (in case of movement of goods within Maharashtra state than e-way bill will be generated if value is more than Rs.100,000) –

In relation to a ‘supply:
This includes simple transactions like sale of goods, branch transfers, any supply to related party, transfer of goods to job worker etc.
For reasons other than a supply:
This category includes all such movement of goods which does not constitute supply per se like taking goods for undertaking services (in case of all contractors, caterers etc.), sending of goods on rent, sending goods for repair etc., goods sent on return or approval basis, goods distributed by way of gifts, etc.
Due to inward ‘supply’ from an unregistered person:
Generation of e-Way Bill in all purchases from unregistered person shall be responsibility of registered person.

Thus E-way bill is required to be generated on the basis of movement of goods which should not be linked with term supply only.

There can be movement of goods even without supply. It may be noted that different statutory limits were prescribed by each State and Union Territory for issuance of E-way bill for movement of goods in their jurisdiction. Statutory limit prescribed by each State is provided in Annexure-1.

Consignment Value - Meaning

The consignment value of goods shall be the value, determined in accordance with the provisions of section 15, declared in an invoice, a bill of supply or a delivery challan, as the case may be, issued in respect of the said consignment and also includes the Central tax, State or Union territory tax, Integrated tax and Cess charged, if any, in the document and shall exclude the value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods.

Movement of goods by registered Service Providers

As already discussed, any movement of goods other than for supply shall require e-Way Bill. As per clause (c) of sub-rule (1) of rule 55 of the CGST Rules, 2017, the supplier is required issue a delivery challan for the initial transportation of goods where such transportation is for reasons other than by way of supply. Thus, in such cases, the e-Way Bill shall be based on such delivery challans.

Movement of goods in case of Line Sales/on approval sales

Such transactions have been clarified vide Circular No. 10-10- 2017-GST, whereby, it has been clarified that the supplier shall issue a delivery challan for the initial transportation of goods where such transportation is for reasons other than by way of supply.

It has been further clarified vide the same Circular that where the supplier carries goods from one State to another and supplies them in a different State, will be inter-state supplies and attract integrated tax in terms of Section 5 of the Integrated Goods and Services Tax Act, 2017.

Multiple invoices in same shipment

If multiple invoices are issued by the supplier to recipient, multiple e-Way Bills have to be generated. Hence it could be said that for each invoice, one separate e-Way Bill has to be generated, irrespective of the fact whether same or different consignors or consignees are involved. But after generating separate e-Way bills, one consolidated e-Way Bill can be generated for transportation purpose, if goods are going in one vehicle.

In case of Rejection by recipient

In such cases, the Supplier/Buyer can again issue e-Way Bill by indicating supply as ‘Sales Return’ with relevant documents. Therefore, e-Way Bills must be generated on the common portal for all these types of movements:

Sale of goods
Goods sent for repair
Carrying goods for undertaking any services like catering etc.
Stock transfer of goods
Goods sent for dry cleaning or any other process
Return of goods
Goods sent for Job Work
Barter etc.

Mandatory e-Way Bill generation

E-way bill needs to be generated mandatorily even if the value of the consignment of goods is less than Rs.50,000 in the following cases:

Inter-State movement of Goods by the Principal to the Job- worker by Principal/registered Job-worker,
Inter-State Transport of Handicraft goods by a dealer exempted from GST registration.

e-Way Bill Components

“FORM GST EWB-01

(See rule 138)

E-Way Bill

E-Way Bill No. :

E-Way Bill date :

Generator :

Valid from :

Valid until :

PART-A
A.1	GSTIN of Supplier
A.2	Place of Dispatch
A.3	GSTIN of Recipient
A.4	Place of Delivery
A.5	Document Number
A.6	Document Date
A.7	Value of Goods
A.8	HSN Code
A.9	Reason for Transportation
PART-B
B.1	Vehicle Number for Road
B.2	Transport Document Number/ Defence Vehicle No./Temporary Vehicle Registration No./Nepal or Bhutan Vehicle Registration No.

From the above structure of form of e-way bill it could be made out that the information for the purpose of generation of e-way bill is to be provided in two parts. Part A and Part B.

Part A requires the information, like GSTIN of Supplier, Place of Dispatch, GSTIN of Recipient, Place of Delivery, Document Number, Document Date, Value of Goods, HSN Code, and Reason for Transportation, to be provided on the common portal electronically. These details can be uploaded by any of the following persons as already discussed above:

Registered person who is Supplier – person causing movement of goods, or
Recipient – in case the supplier is not registered and therefore the recipient would be deemed to be the person causing the movement of goods, or
Transporter in case he is authorized by the registered person to furnish the information required; or
Goods are supplied through e-commerce operator or courier agency, in case they are authorized.

Once the data is provided in Part A, a unique number will be generated on the common portal. After this the data required for Part B needs to be entered into and the e-Way Bill is generated. Now the question arises who can furnish information in Part B of Form GST EWB-01 and what information is required to be furnished.

As discussed above Part B information can be furnished and e-way Bill can be generated by supplier i.e. consignor or the recipient i.e. consignee, electronically on the common portal. Part B comprising of transporter details (Vehicle number). Vehicle number has to be filled in any format, as provided below:

Format	RC Numbers	Example Entry
ABC1234	DEF 234	DEF0234
AB123456	UP 1 345	UP010345
AB12A1234	AP 5 P 23	AP05P0023
AB12AB1234	TN 10 DE 45	TN10DE0045
AB12ABC1234	KE 3 PEW 1265	KE03PEW1265
DFXXXXXXXXXXXXX	For Defence Vehicle, start with DF	DF02K123
TRXXXXXXXXXXXXX	For Temp RC Vehicle, start with TR	TRKA01000002
BPXXXXXXXXXXXXX	For Bhutan Vehicle, start with BP
NPXXXXXXXXXXXXX	For Nepal Vehicle, start with BP

If the RC book has vehicle number like DL1A123, then you enter as DL01A0123. The vehicle entered in the e-Way Bill system is only for information and GST officer will accept this variation.

No e-Way Bill is valid till Part B is filled and submitted. Please also note that when a valid E-way bill is generated a unique e-Way Bill Number (EBN) is allocated and is available to the supplier, recipient, and the transporter.

Who will generate e-Way Bill

Person causing movement of goods needs to generate e way bill. The following person can generate the e-way bill

Supplier;
Recipient;
Transporter, and
e-commerce operator or courier agency

First Proviso of Rule 138(3) provides an option to Registered Person or the Transporter to generate the E Way Bill even if value of consignment is less than Rs.50,000.

Third Proviso of rule 138(3) and (5) provides relaxation for not to furnish details of conveyance in part B of form GST EWB-

01, if the goods are transported for a distance of upto fifty kilometers within the State or Union territory from the place of business of the consignor to the place of business of the transporter for further transportation or from place of business of the transporter to the place of business of consignee.

Cases where e-Way Bill is not required to be generated

where the goods being transported are specified in Annexure;
ANNEXURE
[(See rule 138 (14)]

S. No	Description of Goods
(1)	(2)
1.	Liquefied petroleum gas for supply to household and non domestic exempted category (NDEC) customers
2.	Kerosene oil sold under PDS
3.	Postal baggage transported by Department of Posts
4.	Natural or cultured pearls and precious or semi- precious stones; precious metals and metals clad with precious metal (Chapter 71)
5.	Jewellery, goldsmiths’ and silversmiths’ wares and other articles (Chapter 71)
6.	Currency
7.	Used personal and household effects
8.	Coral, unworked (0508) and worked coral (9601)”;

where the goods are being transported by a non-motorised conveyance;
where the goods are being transported from the customs port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs;
in respect of movement of goods within such areas as are notified under clause (d) of sub-rule (14) of rule 138 of the State or Union territory Goods and Services Tax Rules in that particular State or Union territory;
where the goods, other than de-oiled cake, being transported, are specified in the Schedule appended to notification No. 2/2017- Central tax (Rate) dated the 28th June, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 674 (E) dated the 28th June, 2017 as amended from time to time;
where the goods being transported are alcoholic liquor for motor spirit (commonly known as petrol), natural gas or aviation turbine fuel;
where the supply of goods being transported is treated as no supply under Schedule III of the Act;
where the goods are being transported—
1. under customs bond from an inland container depot or a container freight station to a customs port, airport, air cargo complex and land customs station, or from one customs station or customs port to another customs station or customs port, or
2. under customs supervision or under customs seal;

where the goods being transported are transit cargo from or to Nepal or Bhutan;
where the goods being transported are exempt from tax under notification No. 7/2017-Central Tax (Rate), dated 28th June 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 679(E)dated the 28th June, 2017 as amended from time to time and notification No. 26/2017- Central Tax (Rate), dated the 21st September, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1181(E) dated the 21st September, 2017 as amended from time to time;
any movement of goods caused by defense formation under Ministry of defense as a consignor or consignee;
where the consignor of goods is the Central Government, Government of any State or a local authority for transport of goods by rail;
where empty cargo containers are being transported; and
where the goods are being transported upto a distance of twenty kilometers from the place of the business of the consignor to a weighbridge for weighment or from the weighbridge back to the place of the business of the said consignor subject to the condition that the movement of goods is accompanied by a delivery challan issued in accordance with rule 55.
Explanation. - The facility of generation, cancellation, updation and assignment of e-way bill shall be made available through SMS to the supplier, recipient and the transporter, as the case may be.
where empty cylinders for packing of liquefied petroleum gas are being moved for reasons other than supply.

Separate Registration on e-Way Bill portal – procedure

First step to take registration for generation of e-Way bill:

Visit the e-Way Bill portal www.ewaygst.gov.in.
Click on “‘e-Way Bill Registration” available on the righthand side of the webpage.
Enter the GSTIN of the Registered Taxpayer as the Consignor or the Consignee and then enter the Captcha Code, then Click on “Go” tab, then, Click on Send OTP and verify the same, after checking the auto-filled details.
Enter the OTP received on the registered mobile number and verify the same by clicking on the “verify OTP’ button”.
Create a “New User ID and password” by your own choice. The system validates and pops up a message if there is an error in the details entered by you. Once all the details are correctly filled, User ID and password will be created.

Tips for creating Username & Password

The username should be of at least 8 characters with a combination of alphabets (A-Z/a-z), numerals (0-9) and special characters (@, #, $, %, &, *, ^) and can’t exceed more than 15 characters. The password should be of at least 8 characters.

How to generate E-way Bill

The e-way bill can be generated by the registered person in any of the following methods;-

Using Web based system
Using SMS based facility
Using Android App
Bulk generation facility
Using Site-to-Site integration
Using GSP (Goods and Services Tax Suvidha Provider)

Consolidated e-Way Bill

Consolidated e-Way Bill is a document containing the multiple e-Way Bills for multiple consignments being carried in one conveyance (goods vehicle).

So, the transporter, carrying multiple consignments of various consignors and consignees in one vehicle can generate and carry one consolidated e-Way Bill instead of carrying multiple e-Way Bills for those consignments.

Transporter can generate the consolidated e-Way Bills for movement of multiple consignments in one vehicle.

Further, there is an option available under the ‘Consolidated e-Way Bill’ menu as ‘Regenerate Consolidated e-Way Bill’. This option allows you to change the vehicle number without changing the individual EWBs. This generates a new Consolidated Bill, which has to be carried with new vehicle. Old consolidated e-Way Bill will become invalid for use.

Consolidated e-Way Bill, individually does not have any validity. Validity shall be examined on the basis of each individual e-Way Bill.

Liability of receiver for e-Way Bills generated by other Persons

The details of e-Way Bill generated shall be made available to the recipient, if registered, on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the e-Way Bill.

In case, the recipient does not communicate his acceptance or rejection within 72 hours of the details being made available to him on the common portal, it shall be deemed that he has accepted the said details.

Validity of e-Way Bill

As per sub-rule (10) of Rule 138 of the CGST Rules, 2017, an me-Way or a consolidated e-Way Bill generated on the common portal as per the provisions and procedure of this rule shall remain valid for a period specified and such period is calculated on the basis of distance to be travelled. Such period shall also be fixed on the basis of whether

Goods to be transported are Over Dimensional Cargo; or
Goods to be transported are other than Over Dimensional Cargo.

So, let us first understand what Over Dimensional Cargo is As per Explanation 2 to sub-rule (10) of Rule 138, it shall mean a cargo carried as a single indivisible unit and which exceeds the dimensional limits prescribed in Rule 93 of the Central Motor Vehicle Rules, 1989, made under the Motor Vehicles Act, 1988 (59 of 1988).

*Sl.* *No.*	*Distance*	*Validity period*
*(1)*	*(2)*	*(3)*
1.	Up to ¹ [200 Km]	One day in cases other than Over Dimensional Cargo [or multimodal shipment in which at least one leg involves transport by ship]
2.	For every ¹ [200 km]. or part thereof thereafter	One additional day in cases other than Over Dimensional Cargo [or multimodal shipment in which at least one leg involves transport by ship]
3.	Upto 20 km	One day in case of Over Dimensional Cargo [or multimodal shipment in which at least one leg involves transport by ship]
4.	For every 20 km. or part thereof thereafter	One additional day in case of Over Dimensional Cargo [or multimodal shipment in which at least one leg involves transport by ship]

Now another very important thing to understand is how to calculate the time period. For explaining this we need to refer Explanation 1 of sub-rule (10) of Rule 138 of the CGST Rules, 2017. It is provided that the period of validity shall be calculated from the time at which the e-Way Bill has been generated and each day shall be counted as the period expiring at midnight of the day immediately following the date of generation of e-Way Bill. Means if e-way bill is generated on 10th March @ 10 am for 10 kms. It shall be valid up to 12 midnight of 11th March.

Process to be followed for extension of e-Way Bill

There is an option under e-way bill to extend the validity period. This option is available for extension of e-Way Bill within 8 hours of expiry of the validity.

Here, transporter will enter the e-way bill number and enter the reason for the requesting the extension, from place (current place), approximate distance to travel and Part-B details. It may be noted that he cannot change the details of Part-A. He will get the extended validity based on the remaining distance to travel.

Cancellation of e-Way bill

Where an e-Way bill has been generated under this rule, but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-Way Bill may be cancelled electronically on the common portal within twenty four hours of generation of the e-Way Bill.

An e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of Rule 138B.

It must be noted that if there is a mistake, incorrect or wrong entry in the e-Way bill, then it cannot be edited or corrected. Only option is cancellation of e-Way Bill and generate a new one with correct details.

Transfer of conveyance

If the goods are transferred from one conveyance to another, the consignor or the recipient, who has provided information in Part-A of the FORM GST EWB-01, or the transporter shall, before such transfer and further movement of goods, update the details of conveyance in the e-Way Bill on the common portal in Part-B of FORM GST EWB-01.

The consignor or the recipient, who has furnished the information in Part-A of FORM GST EWB-01, or the transporter, may assign the e-way bill number to another registered or enrolled transporter for updating the information in Part-B of FORM GST EWB-01 for further movement of the consignment.

After the details of the conveyance have been updated by the transporter in Part-B of FORM GST EWB-01, the consignor or recipient, as the case may be, who has furnished the
information in Part-A of FORM GST EWB-01 shall not be allowed to assign the e-Way Bill number to another transporter.

Documents and devices to be carried by a person-incharge of a conveyance

The person in charge of a conveyance shall carry:

the invoice or bill of supply or delivery challan, as the case may be; and
a copy of the e-Way Bill in physical form or the e-Way Bill number in electronic form or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.

When the movement of goods are by rail or by air or vessel, requirement of documents in (b) above will not be applicable.

When the goods are imported, the person in charge of conveyance shall also carry a copy of bill of entry verified by the importer of such goods and shall also indicate the number and date of the bill of entry in Part A of FORM GST EWB-01.

Restriction on furnishing of information in Part A of Form GST EWB-01 for return non filers

As per newly inserted Rule 138E of the CGST Rules, 2017 vide notification number 74/2018-Central Tax dated 31-12-2018 w.e.f. 21-06-2019, following persons shall be restricted from furnishing of Part A of Form GST EWB-01 namely.

being a person paying tax under section 10 (composition tax payers) or availing benefit of notification no. 02/2019-Central Tax (Rate) dated 07th March, 2019 (discharging tax at concessional rate), has not furnished the statement in Form GST CMP–082 for two consecutive quarters ³ ; or
being a person other than a person specified in clause (a), has not furnished the returns for a consecutive period of two tax periods4 or quarters, as the case may be;
being a person other than a person specified in clause (a), has not furnished the statement of outward supplies (GSTR-1) for any two months or tax periods4 or quarters, as the case may be;

The above provision shall were supposed to come into effect from 21/08/2019 vide notification number 25/2019-Central Tax dated 13-06-2019. However as per notification number 36/2019-Central Tax dated 20-08-2019 the above provisions shall come into force from 21/11/2019.

It is provided that said restriction shall not apply during the period from the 20th day of March, 2020 till the 15th day of October, 2020 in case where the return in FORM GSTR-3B or the statement of outward supplies in FORM GSTR-1 or the statement in FORM GST CMP-08, as the case may be, has not been furnished for the period February, 2020 to August, 2020.

Moreover, it is also provided that the said restriction shall not apply during the period from the 1st day of May, 2021 till the 18th day of August, 2021, in case where the return in FORM GSTR-3B or the statement of outward supplies in FORM GSTR-1 or the statement in FORM GST CMP-08, as the case may be, has not been furnished for the period March, 2021 to May, 2021.

Further however on receipt of application from registered person on FORM GST EWB-05, on sufficient cause and reason recorded in writing by order in FORM GST EWB-06, allow furnishing of PART A of FORM GST EWB-01.

Various forms used under E-Way bill

FORM GST EWB-01: Actual E-Way bill with divided into Part A and Part B. Both parts need to be filled compulsorily.
FORM GST EWB-02: Consolidated E-Way bill to be generated by transporter.
FORM GST EWB-03: Verification Report divided into Part A and Part B
FORM GST EWB-04: Report of Detention.
FORM GST EWB-05: Application for allowing to furnish information in Part A of FORM GST EWB-01 by return non filers.
FORM GST EWB-06: Order allowing to furnish information in Part A of fORM GST EWB-01 by return non filers.
FORM GST MOV-01: Statement of the owner / Driver / Person in charge of goods and conveyance
FORM GST MOV-02: Order of physical verification / inspection of conveyance. Goods and documents.
FORM GST MOV-03: Order of extension of time for inspection beyond 3 days
FORM GST MOV-04: Report of Physical Verification
FORM GST MOV-05: Release Order
FORM GST MOV-06: Order of Detention u/s 129(1) of the CGST Act, 2017
FORM GST MOV-07: Notice u/s 129(3) of the CGST Act, 2017
FORM GST MOV-08: Bond for provisional release of goods and conveyance
FORM GST MOV-09: Order of demand of Tax and Penalty
FORM GST MOV-10: Notice for confiscation of goods or conveyances and levy of penalty u/s 130 of the CGST Act, 2017.
FORM GST MOV-11: Order for Confiscation of goods and conveyance and demand of tax, fine and penalty.

E-Way bill in case of storing of goods in godown of transporter (Refer Circular 61/35/2018-GST dated 04-9-2018)

has to be declared as an additional place of business by the recipient taxpayer. In such cases, mere declaration by the recipient taxpayer to this effect with the concurrence of the transporter in the said declaration will suffice. Where the transporter’s godown has been declared as the additional place of business by the recipient taxpayer, the transportation under the e-way bill shall be deemed to be concluded once the goods have reached the transporter’s godown (recipient taxpayer’ additional place of business). Also, e-way bill validity in such cases will not be required to be extended.

EWBs effect on place of Supply

Inter-State movement or inter-State supply are two distinct terms. Several transactions are considered to be inter-State supplies but, for the limited purposes of EWB, their actual movement alone determines whether it is inter-State movement (attracting Central EWB) or intra-State movement (attracting State/UT EWB).

Eg 1: : Goods imported from Germany arrive at Mumbai port. These goods are moved from Mumbai port to office at Nashik. This is an inter-State supply as imports but it is an intra-State movement from Mumbai to Nashik – Requirement of EWB to be determined under the Maharashtra State GST Law.

Eg 2: Generator installed in basement of building being sold to Landlord on termination of lease agreement. EWB will NOT BE REQUIRED as there is ‘no movement’ in this supply.

EWB on ‘Bill-to-Ship-to’ Transactions

Although bill-to-ship-to transactions could sometimes result in twin-supply transactions, they require a single EWB since the movement is single. In the e-way bill form, there are two portions under the ‘TO’ section.

In the left-hand-side: ‘Billing To’ GSTIN and trade name is entered; and

In the right-hand-side: ‘Ship to’ address of the destination of the movement is entered.

The other details are entered as per the data in invoice.

In case ship-to State is different from the Bill-to State, the tax components are entered as per the details of the bill-to person (Bill-to State). i.e., if the Bill-to location is inter-State for the supplier, IGST is entered and if the Bill-to person is located in the same State as the supplier, then SGST and CGST are entered irrespective of the place of delivery (whether within the State or outside the State).

In bill to ship to transactions there are usually 3 parties are involved let us say X, Y and Z.

So there will be two invoices issued:

Inv 1: Between X being Supplier, Y being Bill to Party & Z being Ship to & Recipient Party.

Inv 2: Between Y being Supplier of Z & Z being Ship to & Recipient Party.

Under the above transaction, if X generates the E-Way bill than Bill from X, Bill to Y & Ship to Z with address of Z and all invoice details of Inv 1 will be furnished.

Under the above transaction, if Y generates the E-Way bill than Bill from Y, Bill to Z & Ship to Z with address of Z and all invoice details of Inv 2 will be furnished.

Government has issued Press Release dated 23-04-2018 in this regards.

Inspection and verification of goods [Rule 138C and Rule 138D]

A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST EWB-03 within twenty four hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of the inspection. Provided that such period of three day may be extended for a further period not exceeding three days on sufficient cause being shown.

Note:

Period of 24 hours or 3 days as the case may be shall be counted from the midnight of the date on which the vehicle was intercepted.
If physical Verification is done during transit at one place within the state or Union territory or in any other State or Union Territory, no further physical verification can be carried out again in the State or Union Territory unless in case where evasion of tax is suspected.
If the goods are intercepted or detained for a period exceeding 30 minutes, the transporter may upload the information in FORM GST EWB-04.

Procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances (Also refer flow chart annexed for ease of understanding)

Sub-section (3) of the section 68 of the CGST Act, 2017 provides that where any conveyance is intercepted by the proper officer at any place, he may require the person in charge of the conveyance to produce the documents for verification, and the said person shall be liable to produce the documents and also allow the inspection of goods.
Section 129 of the CGST Act provides for detention, seizure and release of goods and conveyances in transit while section 130 of the CGST Act provides for the confiscation of goods or conveyances and imposition of penalty.
In this regard, Circular No. 41/15/2018-GST dated 13th April, 2018 as amended from time to time, is issued containing detailed procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances
The jurisdictional Commissioner or an officer authorized by him for this purpose shall, by an order, designate an officer/officers as the proper officer/officers to conduct interception and inspection of conveyances and goods in the jurisdictional area specified in such order.
The proper officer, empowered to intercept and inspect a conveyance, may intercept any conveyance for verification of documents and/or inspection of goods. On being intercepted, the person in charge of the conveyance shall produce the documents related to the goods and the conveyance. The proper officer shall verify such documents and where, prima facie, no discrepancies are found, the conveyance shall be allowed to move further.
Where the person in charge of the conveyance fails to produce any prescribed document or where the proper officer intends to undertake an inspection, he shall record a statement of the person in charge of the conveyance in FORM GST MOV-01. In addition, the proper officer shall issue an order for physical verification/inspection of the conveyance, goods and documents in FORM GST MOV- 02, requiring the person in charge of the conveyance to station the conveyance at the place mentioned in such order and allow the inspection of the goods. The proper officer shall, within twenty four hours of the aforementioned issuance of FORM GST MOV-02, prepare a report in Part A of FORM GST EWB-03 and upload the same on the common portal.
Within a period of three days from the date of issue of the order in FORM GST MOV-02, the proper officer shall conclude the inspection proceedings, either by himself or through any other proper officer authorised in this behalf. Where circumstances warrant such time to be extended, he shall obtain a written permission in FORM GST MOV- 03 from the Commissioner or an officer authorized by him, for extension of time not extending three days and a copy of the order of extension shall be served on the person in charge of the conveyance.
On completion of the physical verification/inspection of the conveyance and the goods in movement, the proper officer shall prepare a report of such physical verification in FORM GST MOV-04 and serve a copy of the said report to the person in charge of the goods and conveyance. The proper officer shall also record, on the common portal, the final report of the inspection in Part B of FORM GST EWB-03 within three days of such physical verification/ inspection.
Where no discrepancies are found after the inspection of the goods and conveyance, the proper officer shall issue forthwith a release order in FORM GST MOV-05 and allow the conveyance to move further. Where the proper officer is of the opinion that the goods and conveyance need to be detained under section 129 of the CGST Act, he shall issue an order of detention in FORM GST MOV- 06 and a notice in FORM GST MOV-07 in accordance with the provisions of sub-section (3) of section 129 of the CGST Act, specifying the tax and penalty payable. The said notice shall be served on the person in charge of the conveyance.
Where the owner of the goods or any person authorized by him comes forward to make the payment of tax and penalty as applicable under clause (a) of sub-section (1) of section 129 of the CGST Act, or where the owner of the goods does not come forward to make the payment of tax and penalty as applicable under clause (b) of sub-section (1) of the said section, the proper officer shall, after the amount of tax and penalty has been paid in accordance with the provisions of the CGST Act and the CGST Rules, release the goods and conveyance by an order in FORM GST MOV-05. Further, the order in FORM GST MOV-09 shall be uploaded on the common portal and the demand accruing from the proceedings shall be added in the electronic liability register and the payment made shall be credited to such electronic liability register by debiting the electronic cash ledger or the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act.
Where the owner of the goods, or the person authorized by him, or any person other than the owner of the goods comes forward to get the goods and the conveyance released by furnishing a security under clause (c) of sub-section (1) of section 129 of the CGST Act, the goods and the conveyance shall be released, by an order in FORM GST MOV-05, after obtaining a bond in FORM GST MOV-08 along with a security in the form of bank guarantee equal to the amount payable under clause (a) or clause (b) of sub-section (1) of section 129 of the CGST Act. The finalization of the proceedings under section 129 of the CGST Act shall be taken up on priority by the officer concerned and the security provided may be adjusted against the demand arising from such proceedings.
Where any objections are filed against the proposed amount of tax and penalty payable, the proper officer shall consider such objections and thereafter, pass a speaking order in FORM GST MOV-09, quantifying the tax and penalty payable. On payment of such tax and penalty, the goods and conveyance shall be released forthwith by an order in fORM GST MOV-05. The order in fORm GST MOV-09 shall be uploaded on the common portal and the demand accruing from the order shall be added in the electronic liability register and, upon payment of the demand, such register shall be credited by either debiting the electronic cash ledger or the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act.
In case the proposed tax and penalty are not paid within fourteen days from the date of the issue of the order of detention in FORM GST MOV-06, action under section 130 of the CGST Act shall be initiated by serving a notice in FORM GST MOV-10, proposing confiscation of the goods and conveyance and imposition of penalty.
Where the proper officer is of the opinion that such movement of goods is being effected to evade payment of tax, he may directly invoke section 130 of the CGST Act by issuing a notice proposing to confiscate the goods and conveyance in FORM GST MOV-10. In the said notice, the quantum of tax and penalty leviable under section 130 of the CGST Act read with section 122 of the CGST Act, and the fine in lieu of confiscation leviable under sub- section (2) of section 130 of the CGST Act shall be specified. Where the conveyance is used for the carriage of goods or passengers for hire, the owner of the conveyance shall also be issued a notice under the third proviso to sub-section (2) of section 130 of the CGST Act, proposing to impose a fine equal to the tax payable on the goods being transported in lieu of confiscation of the conveyance.
No order for confiscation of goods or conveyance, or for imposition of penalty, shall be issued without giving the person an opportunity of being heard.
An order of confiscation of goods shall be passed in FORM GST MOV-11, after taking into consideration the objections filed by the person in charge of the goods (owner or his representative), and the same shall be served on the person concerned. Once the order of confiscation is passed, the title of such goods shall stand transferred to the Central Government. In the said order, a suitable time not exceeding three months shall be offered to make the payment of tax, penalty and fine imposed in lieu of confiscation and get the goods released. The order in FORM GST MOV-11 shall be uploaded on the common portal and the demand accruing from the order shall be added in the electronic liability register and, upon payment of the demand, such register shall be credited by either debiting the electronic cash ledger or the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act. Once an order of confiscation of goods is passed in FORM GST MOV- 11, the order in FORM GST MOV-09 passed earlier with respect to the said goods shall be withdrawn.
An order of confiscation of conveyance shall be passed in FORM GST MOV-11, after taking into consideration the objections filed by the person in charge of the conveyance and the same shall be served on the person concerned. Once the order of confiscation is passed, the title of such conveyance shall stand transferred to the Central Government. In the order passed above, a suitable time not exceeding three months shall be offered to make the payment of penalty and fines imposed in lieu of confiscation and get the conveyance released. The order in FORM GST MOV-11 shall be uploaded on the common portal and the demand accruing from the order shall be added in the electronic liability register and, upon payment of the demand, such register shall be credited by either debiting the electronic cash ledger or the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act.
The order referred to in clauses (n) and (o) above may be passed as a common order in the said FORM GST MOV-11.
In case neither the owner of the goods nor any person other than the owner of the goods comes forward to make the payment of tax, penalty and fine imposed and get the goods or conveyance released within the time specified in fORm GST MOV-11, the proper officer shall auction the goods and/or conveyance by a public auction and remit the sale proceeds to the account of the Central Government.
Suitable modifications in the time allowed for the service of notice or order for auction or disposal shall be done in case of perishable and/or hazardous goods.
Whenever an order or proceedings under the CGST Act is passed by the proper officer, a corresponding order or proceedings shall be passed by him under the respective State or Union Territory GST Act and if applicable, under the Goods and Services Tax (Compensations to States) Act, 2017. Further, sub-sections (3) and (4) of section 79 of the CGST Act/respective State GST Acts may be referred to in case of recovery of arrears of central tax/ State tax/Union territory tax.
The procedure narrated above shall be applicable mutatis mutandis for an order or proceeding under the IGST Act, 2017.
Demand of any tax, penalty, fine or other charges shall be added in the electronic liability ledger of the person concerned. Where no electronic liability ledger is available in case of an unregistered person, a temporary ID shall be created by the proper officer on the common portal and the liability shall be created therein. He shall also credit the payments made towards such demands of tax, penalty or fine and other charges by debiting the electronic cash ledger of the concerned person.
A summary of every order in FORM GST MOV-09 and FORM GST MOV-11 shall be uploaded electronically in FORM GST-DRC-07 on the common portal.

Substituted for the figure “100” vide N. No. 94/2020 – Central Tax, dated 22-12-2020 w.e.f. 01-01-2021
Substituted for the words “return” vide N. No. 31/2019 – Central Tax, dated 28-06-2019
Substituted for the words “tax periods” vide N. No. N. No. 31/2019 – Central Tax, dated 28-06-2019
Substituted for the words “two months” vide N. No. 94/2020 – Central Tax, dated 22-12-2020

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