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One of the main purposes of E-way bill is to ensure smooth movement of goods at the check post. Let us examine the various process involved in the process of transporting the goods from one place to another.

Once the goods are ready for transportation, the transporter has to ensure that two things are in place:

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

Extension in the Validity of e-way bills

Update as on 9th June 2020

Any e-way bills generated on or before 24th March 2020 (whose validity has expired on or after 20th day of March 2020) is extended till 30th June 2020.

Update as on 5th May 2020

Any e-way bill generated on or before 24th March 2020 remains valid until 31st May 2020, if its validity period expires anytime between 20th March 2020 and 15th April 2020.

Update as on 3rd April 2020

The validity of the e-way bill extended till 30th April 2020, if the e-way bill expires between 20th March 2020 to 15th April 2020.

Further, the CBIC’s notification of extended time limit up to 30th June 2020 for any compliance falling due between 20th March 2020 and 29th June 2020 does not apply to the generation of e-way bills after 15th April 2020.

Interception or Inspection by the Proper Officer

When the goods are in movement, a proper officer may intercept or inspect any vehicle that is carrying goods. A vehicle may be intercepted either for verification of documents or inspection of goods. He shall verify all the documents that the transporter is carrying including an E-way bill, invoice etc  

However, the officer cannot conduct another physical verification of the same goods when a physical verification has already been conducted in any state or union territory.

As an exception, the vehicle may be stopped if the officer has specific information about tax evasion

Documents to be filed on an interception/ inspection

The officer shall file the following documents on interception:

  1. A summary report in Form GST EWB- 03 Part A within 24 hours of inspection
  2. A final report in Form GST EWB- 03 Part B within 3 days of inspection

Transporter failure to provide documents

If the transporter fails to provide the documents asked for verification, the proper officer shall follow these steps:

Step1: Record statement of the transporter in Form GST MOV- 01

Step2: Issue an order for inspection of goods in Form GST MOV- 02

Step3: On completion of proceedings, a report in Form GST MOV- 04 shall be updated

Consequences of discrepancy not found/ found

A. No discrepancy found on inspection

If no discrepancies are found during the inspection and verification process an order in Form GST MOV-05 shall be passed releasing the vehicle and goods and the vehicle can move on.

The entire process mentioned above should happen simultaneously and the process should be completed within 3 days from the order of inspection.

B. Discrepancy found on inspection

If during the inspection and verification process the officer feels that the goods have to be detained, the officer may take the following actions:

  1. Pass a detention through Form GST MOV- 06
  2. A notice levying the tax and penalty throughForm MOV- 07

Action to be taken by owner w.r.t. the order

On receiving the notice to pay tax and penalty, the owner of goods may take the following actions:

  1. Accept the tax and penalty
  2. Dispute the tax and penalty


Impact of failure to pay tax and penalty

If there is a failure to pay the said amount or the officer feels that there is an evasion of tax, he shall serve a notice proposing to confiscate the goods and vehicle.

  1. The notice shall specify the amount of tax, penalty, and fine in lieu of confiscation to be paid. This amount has to be paid within 3 months.
  2. Before a final order is passed, the officer has to provide an opportunity of being heard to the taxpayer.

Passing of Final Order

The final order shall be passed in Form GST MOV-11 and Form GST MOV-09 shall be withdrawn. Summary of the orders shall also be uploaded on the common portal. When the vehicle is confiscated, the title of the vehicle with goods is transferred to the Central Government and upon payment of fine the title gets released.

For the above cases, when the taxpayer is unregistered, a temporary id shall be created for making the payments.

A tabular summary of the various forms involved in provided below

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

Since these procedures are still in a nascent stage, the benefits of it are yet to be reaped. It is to be seen how the above procedures are going to reduce waiting time, compliance time and also reduce the paperwork of the officers to a great extent.

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