Inspection, Verification and Detention of goods in transit

E-way bills are primarily used to enable efficient transit of goods through checkpoints. Let's look at the many steps that are taken when moving products from one location to another. When the products are prepared for transport, the transporter must make sure of two things:

1. Invoice 

2. E-way Bill or E-way bill number

Investigation or Interception by an Appropriate Officer

Any vehicle transporting goods may be stopped or inspected by a proper authority while it is in motion. A vehicle may be stopped to inspect the contents or check the validity of the documents. He must check every document the transporter carries, such as an invoice and an E-way bill. However, if a physical verification of the same products has already been done in any state or union territory, the officer is not permitted to conduct another. The officer may make an exception and pull over the car if they are certain that tax fraud is occurring.

Documents required for an inspection or interception

Following the interception, the officer must file the following documentation:

1. Within 24 hours of the examination, a summary report in Form GST EWB-03 Part A

2. Within three days of the inspection, a final report in Form GST EWB-03 Part B

Transporter's inability to provide documents

The proper officer must take the following actions if the transporter refuses to deliver the documentation requested for verification: 

1. Fill out Form GST MOV- 01 with the transporter's statement. 

2. Fill out Form GST MOV- 02 to issue an order to inspect goods. 

3. A report in Form GST MOV- 04 must be updated after the case is over.

Consequences of the discrepancy found or not

No discrepancy observed during the inspection

An order in Form GST MOV-05 shall be passed, releasing the vehicle and goods, and the vehicle may proceed if no anomalies are discovered throughout the inspection and verification process. The procedure mentioned above shall be completed at once and finished three days after the inspection order.

On inspection, a discrepancy was discovered.

The officer may take the following steps if they determine that the goods need to be held after the inspection and verification process:

1. Give detention notice using Form GST MOV- 06

2. A notification levying the tax and penalty using Form MOV-07

Action to be taken by the owner as per the order

The owner of the goods may do any of the following after receiving the notice to pay tax and penalty:

1. Accept the tax and penalty.

   1. Pay the tax and penalty.

   2. Furnish a bank guarantee equal to the given amount.

   3. The tax should be paid along with the penalty within 7 days. 

   4. Hereafter, an order releasing the goods is passed in Form GST MOV-05.

2. Contest the penalty and tax.

   In this situation, the officer must consider the objections and pass a speaking order in Form GST MOV-09. 

Consequences of not paying taxes and penalties

The officer must serve a notice proposing to seize the items and vehicle if the specified amount is not paid or he suspects tax evasion.

1. The tax, penalty, and fine in lieu of confiscation that must be paid must be specified in the notice. This sum must be paid in three months.

2. The officer must give the taxpayer a chance to be heard before making a final decision.

Passing of Final Order

Form GST MOV-09 will be withdrawn, and Form GST MOV-11 will be used to pass the final order. The common portal must also be updated with an order summary. When a car is seized, the title of the vehicle and its contents is given to the central government; after a fine has been paid, the title is returned. When the taxpayer is unregistered under the abovementioned situations, a temporary ID must be generated to process the payments. Below is a table with a summary of the different forms involved.

The advantages of these techniques have not yet been realised because they are still in the early stages of development. It remains to be seen whether the abovementioned steps will significantly cut down on officers' paperwork and waiting and compliance time.