CONFISCATION AND REDEMPTION FINE UNDER GST ACT

1. Confiscation proceedings are applicable only for Goods or Conveyances.
2. Goods supplied or received in contravention of GST law with intent to evade payment of tax are liable for confiscation.
3. Goods on which CST is payable and are not accounted for are also liable for confiscation.
4. Goods which are liable to tax under GST law and are supplied without having applied for registration are liable for confiscation.
5. If a taxable person contravenes any of the provisions of GST law with intent to evade payment of tax, then such goods can also be confiscated.
6. If a person uses any conveyance as a means of transport for carriage of goods in contravention of GST law, then such conveyance is liable for confiscation unless the owner of the conveyance proves that it was so used without the knowledge or connivance of the owner himself, his agent if any, and the person in charge of the conveyance.
7. On confiscation of any goods or conveyance, an option shall be given to owner to pay fine in lieu of confiscation which is called Redemption Fine.
8. Redemption fine shall not exceed the market value of the goods confiscated, less the tax chargeble thereon.
9. In case where any conveyance is used for the carriage of the goods or passengers for hire the owner of the conveyance shall be given an option to pay in lieu of the confiscation of the conveyance a fine equal to the tax payable on the goods being transported thereon.
10. Redemption Fine shall be in addition to any tax, penalty and charges payable in respect of such goods or conveyance.
11. Title of confiscated goods or conveyances shall vest in the Government.
12. Disposal of confiscated goods or conveyance which are not required in any other proceedings shall be disposed off after giving three month notice and the sale proceeds will be deposited with the Government