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Goods detained and released after submission of bond along with a security in the form of bank guarantee -Important Timelines, Process and Forms

Goods detained and released after submission of bond along with a security in the form of bank guarantee -Important Timelines, Process and Forms

 

This post covers the case wherein goods are detained by the proper officer and are released on submission of bond along with a security in the form of bank guarantee. Following steps are required to be followed in the process and actions need to be taken by the taxpayer/other person for release of goods.

 

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-05 with GST MOV-08 Order for release of goods in MOV-05 and Bond in MOV-08 Security against proposed tax and penalty to be provided within fourteen days from the date of the issue of the order of detention in FORM GST MOV-06 Where owner of goods, or person authorized by him, or any person other than owner of goods comes forward to get goods and 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.

 

 

GST MOV-09 Order in MOV-09 to add the demand accruing in the electronic liability register NA The finalisation 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.

 

Order in FORM GST MOV-09 shall be uploaded on 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.

 

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