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Auction of Goods and Conveyance for non-payment of tax, penalty and fine imposed within the time specified in FORM GST MOV-11-Important Timelines, Process and Forms

Auction of Goods and Conveyance for non-payment of tax, penalty and fine within the time specified in FORM GST MOV-11-Important Timelines, Process and Forms

 

This post covers the case wherein neither owner of goods nor any person other than owner of goods comes forward to make payment of tax, penalty and fine imposed and get goods or conveyance released within the time specified in FORM GST MOV-11. Following steps are required to be followed in the process and actions need to be taken.

 

FORM Action to be taken Time Limit if any Details of the Action to be Taken

 

FORM GST MOV-01 Recording the Statement of person in charge of conveyance NA 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

 

FORM GST MOV-02 Physical verification/inspection of the conveyance, goods and documents NA In addition to issuance of MOV-01, 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.

 

PART-A FOR GST EWB-03 Report for Physical Verification/inspection of the conveyance, goods and documents Within Twenty-Four hours of issuance of FORM GST MOV-02 Proper officer shall, within twenty four hours of 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.

 

FORM GST MOV-03- Application for Extension of Time Limit for conclusion of inspection proceedings to be obtained by the proper officer from the Commissioner or an officer authorized by him Conclusion of Inspection proceedings within a period of  Three days from date of issue of order in FORM GST MOV-02 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 beyond three days and a copy of the order of extension shall be served on the person in charge of the conveyance.

 

FORM GST MOV-04 Report of Physical Verification /inspection of the conveyance and the goods in movement NA 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.

 

PART B FORM GST EWB-03 Final Report of Inspection to be uploaded on the portal in Part B of FORM GST EWB-03  Within three days of such physical verification/inspection. The proper officer shall also record, on the common portal, final report of inspection in Part B of FORM GST EWB-03 within three days of such physical verification/inspection.

 

GST MOV-06 and GST MOV-07 Detention order for goods and Conveyance in MOV-06 and Notice in accordance with the provisions of Section 129(3) in MOV-07 NA Where proper officer is of opinion that 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 Actspecifying the tax and penalty payable. The said notice shall be served on the person in charge of the conveyance.

 

GST MOV-10 Notice for Initiation of proceedings under Section 130 of CGST Act proposing confiscation of the goods and conveyance and imposition of penalty 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 In case 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.

 

Or

 

Where proper officer is of 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 fine in lieu of confiscation leviable under sub-section (2) of section 130 of the CGST Act shall be specified.

 

Where conveyance is used for 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.

 

GST MOV-11 (Goods) Order for Confiscation of Goods Order of confiscation to give suitable time not exceeding three months to make payment of tax, penalty and fine imposed in lieu of confiscation and get goods released. Once the order of confiscation is passed, the title of such goods shall stand transferred to the Central Government.

 

An order of confiscation of goods shall be passed in FORM GST MOV-11, after taking into consideration objections filed by person in charge of goods (owner or his representative), and the same shall be served on the person concerned.

 

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. Once the order of confiscation is passed, the title of such goods shall stand transferred to the Central Government.

 

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.

GST MOV-11 (Conveyance) Order for Confiscation of Conveyance Order of confiscation to give suitable time not exceeding three months to make payment of penalty and fines imposed in lieu of confiscation and get the conveyance released. Once the order of confiscation is passed, the title of such conveyance shall stand transferred to the Central Government.

 

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 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.

 

Auction of Goods Neither owner of goods nor any person other than owner of goods comes forward to make payment of tax, penalty and fine imposed and get goods or conveyance released within the time specified in FORM GST MOV-11 In case neither owner of goods nor any person other than owner of goods comes forward to make payment of tax, penalty and fine imposed and get 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.

 

 

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