Sec 68 – Inspection of goods in movement

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Sec 68 – Inspection of goods in movement 2017-04-16T23:19:37+00:00

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  • Ashish BadalaCA Ashish Badala
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    (1) The Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to carry with him such documents and such devices as may be prescribed.

    (2) The details of documents required to be carried under sub-section (1) shall be validated in such manner as may be prescribed.

    (3) Where any conveyance referred to in sub-section (1) is intercepted by the proper officer at any place, he may require the person in charge of the said conveyance to produce the documents prescribed under the said sub-section and devices for verification, and the said person shall be liable to produce the documents and devices and also allow the inspection of goods.

    Priya MadrechaPriya Madrecha
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    68.1. Introduction
    This provision enables prescription of documents and devices to be carried by the transporter and production for verification thereof.
    68.2. Analysis
    A.    The person in charge of the conveyance carrying any consignment of goods of value exceeding the specified amount shall carry with him such documents and devices as prescribed by Rule 2 of draft electronic way bill rules. As per draft of Electronic Way Bill Rules, person causing movement of goods of consignment value exceeding Rs. 50000/- in value is required to furnish information relating to such goods before commencement of movement in Form GST INS-01 or GST INS-02 electronically on the common portal. An option to generate e-way bill is permissible even if the value of the consignment is lower than Rs. 50000/-.
    B.    e-Way bill
    (i)    An unregistered person moving goods in his own or hired conveyance can at his potion generate an e-Way bill in FORM GST INS-01, the recipient will be informed electronically on his mobile or email.
    (ii)    If the movement is caused by an unregistered supplier to a registered recipient (known at the time of movement) then the movement is deemed to have caused by a registered recipient.
    (iii)    A transporter shifting goods from one vehicle to another while the goods are in movement is required to generate a new e-Way bill in FORM GST INS-01.
    (iv)    If a transporter transports multiple consignments in one vehicle then he is required to indicate the serial no. of each e-Way bill in FORM GST INS-02 prior to the movement of goods.
    (v)    If for any reason the Consignor does not generate an e-Way bill, the transporter can generate an e-Way bill based on Tax Invoice/Bill of Supply/Delivery Challan or any other document in FORM GST INS-01 and also a consolidated e-Way bill in GST INS02 prior to movement of goods.
    (vi)    The information in FORM GST INS-01 will be made available to the registered supplier on the portal who can utilize such information for filing his return in FORM GSTR-1.
    (vii)    Any e-way bill generated incorrectly or after generation the goods are not transported, such e-Way bill must be electronically cancelled within 24 hours of its generation.
    (viii)    No e-way bill can be cancelled if it is verified in transit.
    (ix)    An e-way bill or Consolidated e-way bill generated shall be valid for the relevant date/time as follows.
    Sl No.     Distance     Validity period
    1     Less than 100 Kms.     1 day
    2     >100 Kms < 300 Kms     3 days
    3     >300 Kms < 500 Kms     5 days
    4     >500 Kms < 1000 Kms     10 days
    5     >1000 Kms     15 days
    The Commissioner is empowered to extend the validity period in case of notified goods.
    (x)    A registered recipient of goods must confirm his acceptance of the e-way bill generated within 72 hours and if he does not do so, it is deemed to have been accepted.
    C.     Documents & Delivery
    (i)    The person in charge of transportation is mandated to carry with him:
    (a)    An invoice/Bill of Supply or Delivery Challan.
    (b)    A copy of e-Way bill or e-Way bill no.
    (ii)    The Commissioner is empowered to notify a specified class of transports to embed a Radio Frequency Identification Device on the vehicle to enable mapping of the e-Way bills.
    (iii)    A registered person can upload the tax invoice in FORM GST INV-1 and obtain a Invoice Reference No. which can be produced for verification in lieu of an invoice.
    D.    An officer is empowered to physically inspect the documents, vehicle or goods while in transit.
    E.    On interception of the conveyance by the proper officer, the said person shall produce such documents and devices for verification and also allow inspection of goods. As per rule 5 of per draft of Electronic Way Bill Rules where a vehicle has been intercepted and detained for a period exceeding 30 minutes the transporter may upload the said information in Form GST INS-04 on the common portal.
    68.3.    Comparative review
    There is a similar provision conferring power to stop and search any conveyance carrying excisable goods in rule 23 of the CE Rules, 2002. VAT legislations provide extensive powers to officers and also permit them to establish ‘check posts’ to inspect and verify the documents compulsorily and the officer has power to seize the conveyance, if the documents are not proper or available.
    68.4.    FAQs
    Q1.     What needs to be carried by a person in charge of a conveyance carrying goods?
    Ans.  He should carry the documents and devices as per provisions of Rule 2 of Draft Electronic Way Bill
    Q2.     Does the officer have powers to inspect the documents carried in a conveyance?
    Ans.  In terms of section 68(2), the officer is conferred powers to inspect and validate such documents.
    68.5.    MCQs
    Q1. The person in charge of the conveyance carrying any consignment of goods exceeding the value of ________________, shall carry prescribed documents.
    (a)    Rs. 50,000
    (b)    Rs. 15,000
    (c)    Rs. 10,000  (d)  Rs. 25000.
    Ans.  (a) Rs.50, 000/- as per draft electronic way bill rules

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