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:
- E-way Bill or E-way bill number
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:
- A summary report in Form GST EWB- 03 Part A within 24 hours of inspection
- 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:
- Pass a detention through Form GST MOV- 06
- 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:
- Accept the tax and penalty
- 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.
- 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.
- 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
|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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