IMPORTANT HIGHLIGHTS OF GST COUNCIL MEETING DATED 22-12-2018

1.   Facility of Generating E-way bill will be restricted if tax payer failed to file the returns for two consecutive tax periods

Taxpayers who have not filed the returns for two consecutive tax periods shall be restricted from generating e-way bills. This provision shall be made effective once GSTN/NIC make available the required functionality.

2.   Late Fee

Late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B & FORM GSTR-4 for the months / quarters July, 2017 to September, 2018, are furnished after 22.12.2018 but on or before 31.03.2019.

3.   Due date for GST ITC-04 extended till 31-03-2019

The due date for submitting FORM GST ITC-04 for the period July 2017 to December 2018 shall be extended till 31.03.2019.

4.   Period for filing Annual Return under GST extended

The due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 — 2018 shall be further extended till 30.06.2019.

5.   ITC for the last financial year against invoices can be availed upto 31-03-2019

ITC in relation to invoices issued by the supplier during FY 2017-18 may be availed by the recipient till the due date for furnishing of FORM GSTR-3B for the month of March, 201 9, subject to specified conditions.

6.   Advance Ruling

In case of conflict on advance ruling, then the decision of Centralized Authority is binding.

7.   Due date for furnishing GSTR-8 by E-commerce operators extended

The due date for furnishing FORM GSTR-8 by e-commerce operators for the months of October, November and December, 2018 shall be extended till 31.01.2019.

8.   Single Cash Ledger for each tax head

There would be a single cash ledger for each tax head. The modalities for implementation would be finalised in consultation with GSTN and the Accounting authorities.

9.   Refund

A scheme of single authority for disbursement of the refund amount sanctioned by either the Centre or the State tax authorities would be implemented on pilot basis. The modalities for the same shall be finalized shortly.

10.  Invoices / Documents can be uploaded through portal

All the supporting documents/invoices in relation to a claim for refund in FORM GST RFD-OIA shall be uploaded electronically on the common portal at the time of filing of the refund application itself, thereby obviating the need for a taxpayer to physically visit a tax office for submission of a refund application. GSTN will enable this functionality on the common portal shortly.

  11.      New return filing system shall be introduced

The new return filing system shall be introduced on a trial basis from 01.04.2019 and on mandatory basis from 01.07.2019.

The following clarificatory changes, inter-alia, shall be carried out in the formats/instructions according to which the annual return / reconciliation statement is to be submitted by the taxpayers:

·       Amendment of headings in the forms to specify that the return in FORM GSTR-9& FORM GSTR-9A would be in respect of supplies etc. 'made during the year' and not 'as declared in returns filed during the year';

·      All returns in FORM GSTR-I &FORM GSTR-3B have to be filed before filing of FORM GSTR-9 & FORM GSTR-9C;

·        All returns in FORM GSTR-4 have to be filed before filing of FORM GSTR-9A;

·   HSN code may be declared only for those inward supplies whose value independently accounts for 10% or more of the total value of inward supplies;

·       Additional payments, if any, required to be paid can be done through FORM GST DRC-03 only in cash;

·        ITC cannot be availed through FORM GSTR-9 & FORM GSTR-9C;

·   All invoices pertaining to previous FY (irrespective of month in which such invoice is reported in FORM GSTR-I) would be auto-populated in Table 8A of FORM GSTR-9;

·       Value of "non-GST supply" shall also include the value of "no supply" and may be reported in Table SD, 5E and 5F of FORM GSTR-9;

·    Verification by taxpayer who is uploading reconciliation statement would be included in FORM GSTR-9C.

The following types of refunds shall also be made available through FORM GST RFD-OIA:

·        Refund on account of Assessment/Provisional Assessment/Appeal /Any Other Order;

·        Tax paid on an intra-State supply which is subsequently held to be inter-State supply and vice-versa;

·        Excess payment of Tax; and

·        Any other refund.

In case of applications for refund in FORM GST RFD-OIA (except those relating to refund of excess balance in the cash ledger) which are generated on the common portal before the roll out of the functionality described in point (10) above, and which have not been submitted in the jurisdictional tax office within 60 days of the generation of ARN, the claimants shall be sent communications on their registered email ids containing information on where to submit the said refund applications. If the applications are not submitted within 15 days of the date of the email, the said refund applications shall be summarily rejected, and the debited amount, if any, shall be re-credited to the electronic credit ledger of the claimant.

Clarifications on refund matters

Clarifications shall be issued on certain refund related matters like refund of ITC accumulated on account of inverted duty structure, disbursal of refunds within the stipulated time, time allowed for availment of ITC on invoices, refund of accumulated ITC of compensation cess etc.

Changes made by CGST (Amendment) Act, 2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 and the corresponding changes in SGST Acts would be notified w.e.f. 01.02.2019.

The requisite Notifications/Circulars for implementing the above recommendations of the GST Council shall be issued shortly. (PIB)

Extension of the due date for filing of Annual GST returns to 31st March 2019

Government extends deadline for filing annual GST return by by three months 

Extension of the due date for filing of returns in FORM GSTR-9, 9A and 9C for the part of the Financial Year July 2017 to March 2018 from 31st December 2018 to 31st March 2019.

Press Release in this regard is attached. Notification is awaited.

No direct confiscation U/s 130 under the Goods & Services Tax Act, 2017

To download order dated 10th of October, 2018, passed by Hon'ble Punjab & Haryana High Court, in case of "M/s R.R. Enterprises, Ludhiana V/s State of Punjab and others", CWP No. 23203 of 2018,

CLICK HERE

Hon'ble High Court ordered to release interest accrued due to delay in refund

Hon'ble Punjab & Haryana High Court, Chandigarh in Civil Writ Petition (CWP) no. 18314 of 2018, titled as "M/s Sukhdev & Company V/s State of Punjab and others", ordered that the amount of interest due to the petitioner be paid to the firm within four weeks.

In the said case, Mr. M. P. Singh, Financial Commissioner, Taxation, Punjab presented in person in Court. He submitted that after the introduction of GST from July 1, 2017, the process of refund of any excess amount paid by the assessees is streamlined. He further submitted that about a sum of  Rs.750 crores is to be refunded to the assessees under the Punjab Value Added Tax Act, 2005 (for short 'the VAT Act').

For detailed order Please CLICK HERE

Hon'ble Punjab & Haryana High Court ordered to release interest alongwith refund

Key-important Points of 28th GST Council Meeting Held on 21st July, 2018

Under the Chairmanship of Shri Piyush Goyal , Union Minister for Railways , Coal , Finance & Corporate Affairs 28th GST Council Meeting was held and in which, the new return formats and associated changes in law are approved. The formats and business process approved on 21 July 2018 were in line with the basic principles with one major change i.e the option of filing quarterly return with monthly payment of tax in a simplified return format by the small taxpayers.

The GST Council has recommended following key points on 21st July, 2018 :

• Upper limit of turnover for opting for composition scheme to be raised from Rs. 1 crore to Rs. 1.5 crore. Present limit of turnover can now be raised on the recommendations of the Council.
• Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory.
• Levy of GST on reverse charge mechanism on receipt of supplies from unregistered suppliers, to be applicable to only specified goods in case of certain notified classes of registered persons, on the recommendations of the GST Council.
• Taxpayers would have facility to create his profile based on nature of supplies made and received. The fields of information which a taxpayer would be shown and would be required to fill in the return would depend on his profile.
• opening of migration window for taxpayers till 31st August ,2018
• All taxpayers excluding small taxpayers and a few exceptions like ISD etc. shall file one monthly return. The return is simple with two main tables. One for reporting outward supplies and one for availing input tax credit based on invoices uploaded by the supplier

• NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS.

• The new return design provides facility for amendment of invoice and also other details filed in the return. Amendment shall be carried out by filing of a return called amendment return.
• The Council approved quarterly filing of return for the small taxpayers having turnover below Rs. 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons – small traders making only B2C supply or making B2B + B2C supply.

• Payment would be allowed to be made through the amendment return as it will help save interest liability for the taxpayers.

• As a green initiative, GST on supply of e-books has been reduced from 18 to 5%.

• 5% GST is being extended to footwear having a retail sale price up to Rs. 1000 per pair. Footwear having a retail sale price exceeding Rs. 1000 per pair will continue to attract 18%

• Composition dealers to be allowed to supply services (other than restaurant services), for upto a value not exceeding 10% of turnover in the preceding financial year, or Rs. 5 lakhs, whichever is higher.

• The threshold exemption limit for registration in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya,Sikkim and Uttarakhand To be increased to Rs. 20 Lakhs from Rs. 10 Lakhs.

• Mandatory registration is required for only those e-commerce operators who are required to collect tax at source.

• Registration to remain temporarily suspended while cancellation of registration is under process, so that the taxpayer is relieved of continued compliance under the law.

• Scope of input tax credit is being widened, and it would now be made available in respect of the following:
  1. Most of the activities or transactions specified in Schedule III;
  2. Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft;
  3. Motor vehicles for transportation of money for or by a banking company or financial institution;
  4. Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and
  5. Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force.

• The following transactions to be treated as no supply (no tax payable) under Schedule III:
  1. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
  2. Supply of warehoused goods to any person before clearance for home consumption; and
  3. Supply of goods in case of high sea sales.
• Recovery can be made from distinct persons, even if present in different State/Union territories.
• The order of cross-utilisation of input tax credit is being rationalised.
• In case the recipient fails to pay the due amount to the supplier within 180 days from the date of issue of invoice, the input tax credit availed by the recipient will be reversed, but liability to pay interest is being done away with.

• Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively.
• Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores, respectively.
• Supply of services to qualify as exports, even if payment is received in Indian Rupees, where permitted by the RBI.
• Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year.

• Place of supply in case of job work of any treatment or process done on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India.

EWay Bill is mandatory from 01.06.2018. Notification is attached.

Punjab Government has also implemented EWay Bill for Intra-State Movement of Goods from 1st June 2018. The copy of Press Release is attached below.

IMPORTANT POINTS UNDER GST

1.     Reversal of ITC in case of exempted / non-GST supply – As per Section 17(1) and 17(2) of CGST Act, 2017 read with Rule 42 of CGST Rules, 2017, companies are required to reverse input tax credit of common goods / services used for providing taxable as well as exempted supply. Such reversal is required to be made as per the formula given under Rule 42 of CGST Rules, 2017 on proportionate basis.

2.     Verification of “place of supply” to check whether correct GST is charged – Verification is advisable mainly in cases where “Bill To” person is different than “Ship To” person. In such a case, “place of supply” is location of the “Bill To” person rather than location of the “Ship To” person.

3.     Reverse charge liability in case of goods / services – It is advisable to reconcile value reported in GSTR-3B with respective expense ledger. For example, transport expenses for GTA, legal expenses / professional fee for Legal service etc.

4.     Verification of “Other Income” ledger – It is advisable to go through every transaction reflected in “Other Income” ledger to confirm as to whether GST is applicable on any of such transaction for which tax invoice is not prepared. For example, penalty / damages recovered etc.

5.     ITC on pre-paid expenses – It is seen that many companies have paid certain amount in the financial year 2017-18 which is pertaining to services to be received during the financial year 2018-19. Such expenses are treated as “pre-paid expenses”. For example, lease line expenses, rent, insurance etc. It is seen that companies have claimed ITC on such services since tax invoices are booked and payment is made. However, one of the pre-condition of availment of taking credit is that such service is received. In case of pre-paid expenses, service is not actually received and therefore, this would amount to excess availment of credit.

6.     Admissibility of input tax credit (ITC) – While finalizing ITC, it is advisable to go through the “negative list” given u/s 17(5) of CGST Act, 2017. In other words, ITC is available on all such goods / services which are used in the course of business except list of goods / services given u/s 17(5) of the CGST Act, 2017.

7.     Supply of services free of cost to branches located to other States – As per Section 25 of the CGST Act, 2017 read with clause 2 of Schedule – I to the CGST Act, 2017, any support given by head office to its branches / factory is to be treated as “outward supply” and accordingly, IGST will be applicable. In such a case, companies are definitely not preparing any commercial invoice however, as per above legal provisions, tax invoice is required to be prepared and IGST liability needs to be paid.

8.     Creditors more than 6 months (180 days) – As per the proviso to Section 16(2) of the CGST Act, 2017, company is required to make payment of basic value plus GST to the respective supplier within a period of 180 days from the date of tax invoice. It may be noted that if such payment is not made within 180 days from the date of tax invoice, then in that case, input tax credit availed against such tax invoice is required to be reversed (by adding output tax liability) along with interest.

9.     Adjustment of advance in earlier month – Upto 14th November 2017, GST was payable even on receipt of advance against goods. In such a case, GST liability was required to be reduced at the time of raising tax invoice in the subsequent month(s). It is seen that in few cases, companies have inadvertently not reduced GST liability and paid full GST amount as mentioned in tax invoice which has resulted in excess payment of GST. Such excess payment can to be adjusted in financial year 2018-19 at the time of filing GSTR-3B of any month.

10. Any foreign payment made (apart for import of goods) for which CA Certificate is obtained – all foreign payments excluding payments against import of goods may attract IGST towards import of service under reverse charge.

11. Any value of goods written off in the books – as per Section 17(5)(h) of the CGST Act, 2017, if any company writes off any value of goods (whether raw material or WIP or finished goods), in such a case, respective ITC needs to be reversed.

12. Sale of used cars – In case of sale of used cars, Compensation Cess was required to be paid apart from GST. Such Compensation Cess was payable upto 24thDecember 2017. Please refer to the link for more information :> [http://bediadvocate.blogspot.in/2018/02/taxability-under-gst-on-old-and-used.html.]

13. Any recovery from employees – Recovery of any amount towards transport charges, mobile expenses, notice pay, canteen expenses etc. would attract GST. Such recovery is to be treated as outward supply and GST is applicable at the appropriate rate. However, since employer-employee are related parties, valuation will play a vital role.

14. Non-availment of ITC in case of FOC receipts – As per Section 7 of the CGST Act, 2017, GST is not required to be charged in case of supply of free samples or FOC. However, it is seen that many companies are charging GST on free sample or FOC supply for easy compliance of Rule 42 of CGST Rules, 2017 (i.e. non-requirement of reversal of ITC on free sample or FOC supply). If any company has received any goods as free sample or under warranty or FOC along with tax invoice of the supplier, then in that case, it would be advisable not to claim input tax credit since there is no question of making payment to the vendor, which is one of the pre-condition of availment of credit.

IMPORTANT NEWS RELATED TO VAT REFUND ALONGWITH INTEREST ON DELAYED PAYMENT BY THE DEPARTMENT

Problems faced by the dealers related to Trans 1 Form while uploading not resolved by the authorities is now before the Hon'ble Punjab and Haryana High Court and in obtaining the GST Refund from the state head.

As we all are aware that after the introduction of GST Act, there is hue and cry in the entire trade circle, due to the non-supportive portal system. Resultant number of dealer have failed to even carry forward their legitimate credit on transitional stock and in many cases, the problems were related to the profile on the GSTIN portal. 

Thereafter, number of representations were made to the concerned officials but the issue was not resolved. So, left with no other alternative, few of them have approached the Hon'ble Punjab & Haryana High Court, Chandigarh and the Hon'ble Court has issued the notice of motion. Now, the matter is fixed for further hearing.

In the meanwhile, Govt. has also issued the circular, the copy of the same is attached below.

F. No. 267/69/2017-CX.8

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

New Delhi, dated the 5^th April 2018

To

The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (AII)

Sub: Write petitions field in various High Courts regarding constitutional validity of section 140(3)(iv) of CGST Act and inability to file TRAN I due to technical glitches on GST portal-reg.

Madam/ Sir,

The undersigned is directed to refer to writ petitions field by taxpayers in various High Courts challenging the constitutional validity of section 140(3)(iv) of the CGST Act. The issue raised vide said petitions have been examined and a detailed reply in respect of various policy issued raised therein is enclosed herewith as Annexure-A. It is requested that the enclosed comments may be used while filing counter affidavit or preparing reply to the rejoinder, based on the facts of each case.

2. Further, writ petitions are also being filed in various High Courts by taxpayers who could not complete the process of filing of TRAN-I by due date, due to technical glitches on GST portal. In this regard, Bard has issued a detailed circular no. 39/13/2018-GST dated 03.04.2018 (enclosed as Annexure-B) on setting up of an IT Grievance Redressal Mechanism to address the grievances of taxpayer’s dues to technical glitches on GST Portal. Suitable replies to all such writ petitions, based on the facts of each case, may be filed before the Courts in line with procedures prescribed in the said circular, subject to fulfilment of the conditions prescribed therein.

Yours Faithfully

ROHAN    

OSD (CX.3)

Encl: Annexure A & B

Copy to:

  1.  Commissioner (Legal), CBEC, CBEC offices, HUDCO, Vishala building, B-Wing, BHikaji Cama Place, R.K., Puram, New Delhi – 66 for information.

   2.  CEO (GSTN), East Wing, 4^th Floor, World Mark-1, Aerocity, New Delhi-37 for information.

CLICK HERE FOR ANNEXURE-A & B

Important issues related to detention and release of goods in transit

It is an effort to compile all the important points related to detention and release of goods in transit under the GST Act 2017 along with Circulars and Forms prescribed under the Gst Act 2017  and performa of indemnity bond for provisional release of goods beside other important performa like release order, order of demand of tax and penalty, physical verification, report, etc.

Clarifying the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances.

Circular No. 41/15/2018-GST

CBEC-20/16/03/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
*********

New Delhi, Dated the 13th April, 2018

To,

The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (Al I )/The Principal Di rectors General/ Di rectors General (All )

Madam/Sir,

Subject: Procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances–Reg.

Sub-section (1) of section 68 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the “CGST Act”) stipulates that the person in charge of a conveyance carrying any consignment of goods of value exceeding a specified amount shall carry with him the documents and devices prescribed in this behalf. Sub-section (2) of the said section states that the details of documents required to be carried by the person in charge of the conveyance shall be validated in such manner as may be prescribed. Sub-section (3) of the said section provides that where any conveyance referred to in sub-section (1) of the said section is intercepted by the proper officer at any place, he may require the person in charge of the conveyance to produce the documents for verification, and the said person shall be I iable to produce the documents and also allow the inspection of goods.

1.1 Rules 138 to 138D of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the “CGST Rules”) lay down, in detail, the provisions relating to e-way bills As per the said provisions, in case of transportation of goods by road, an e-way bill is required to be generated before the commencement of movement of the consignment. Rule 138A of the CGST rules prescribes that the person in charge of a conveyance shall carry the invoice or bill of supply or delivery chal Ian, as the case may be; and in case of transportation of goods by road, he shall also carry a copy of the e-way bill in physical form or the e-way bill number in electronic form or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.

1.2 Section 129 of the CGST Act provides for detention, seizure and release of goods and conveyances in transit while section 130 of the CGST Act provides for the confiscation of goods or conveyances and imposition of penalty.

2. In this regard, various references have been received regarding the procedure to be followed in case of interception of conveyances for inspection of goods in movement and detention, seizure and release and confiscation of such goods and conveyances. In order to ensure uniformity in the implementation of the provisions of the CGST Act across all the field formations, the Board, in exercise of the powers conferred under section 168 (1) of the CGST Act, hereby issues the folIowing instructions:

(a) The jurisdictional Commissioner or an officer authorised by him for this purpose shall, by an order, designate an officer/officers as the proper officer/officers to conduct interception and inspection of conveyances and goods in the jurisdictional area specified in such order.

(b) The proper officer, empowered to intercept and inspect a conveyance, may intercept any conveyance for verification of documents and/or inspection of goods. On being intercepted, the person in charge of the conveyance shall produce the documents related to the goods and the conveyance. The proper officer shall verify such documents and where, prima facie, no discrepancies are found, the conveyance shall be allowed to move further. An e-way bill number may be available with the person in charge of the conveyance or in the form of a printout, sms or it may be written on an invoice. All these forms of having an e-way bill are valid. Wherever a facility exists to verify the e-way bill electronically, the same shall be so verified, either by logging on to http://mis.ewaybillgst.gov.in or the Mobile App or through SMS by sending EWBVER <EWB_NO> to the mobile number 77382 99899 (For e.g. EWBV ER 120100231897).

(c) For the purposes of verification of the e-way bill, interception and inspection of the conveyance and/or goods, the proper officer under rule 138B of the CGST Rules shall be the officer who has been assigned the functions under sub-section (3) of section 68 of the CGST Act vide Circular No. 3/3/2017 – GST, dated 05.07.2017.

(d) 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 M OV­ In addition, the 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. The proper officer shall, within twenty four hours of the aforementioned 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.

(e) Within a period of three working days from the date of issue of the order i n 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 ti me to be extended, he shal I obtain a written permission in FORM GST MOV-03 from the Commissioner or an officer authorized by him, for extension of time beyond three working days and a copy of the order of extension shall be served on the person in charge of the conveyance.

(f) 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. The proper officer shall also record, on the common portal, the final report of the inspection in Part B of FORM GST EWB-03 within three days of such physical verification/inspection.

(g) Where no discrepancies are found after the inspection of the goods and conveyance, the proper officer shall issue forthwith a release order in FORM GST MOV-05 and allow the conveyance to move further. Where the proper officer is of the opinion that the 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 Act, specifying the tax and penalty payable. The said notice shall be served on the person i n charge of the conveyance.

(h) Where the owner of the goods or any person authorized by him comes forward to make the payment of tax and penalty as applicable under clause (a) of sub-section (1) of section 129 of the CGST Act, or where the owner of the goods does not come forward to make the payment of tax and penalty as applicable under clause (b) of sub-section (1) of the said section, the proper officer shall, after the amount of tax and penalty has been paid in accordance with the provisions of the CGST Act and the CGST Rules, release the goods and conveyance by an order in FORM GST MOV-05. Further, the order in FORM GST MOV-09 shall be uploaded on the 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.

(i) Where the owner of the goods, or the person authorized by him, or any person other than the owner of the goods comes forward to get the goods and the 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. 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.

(j) 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. On payment of such tax and penalty, the goods and conveyance shall be released forthwith by an order in FORM GST MOV-05. The order in FORM GST MOV­09 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.

(k) In case the proposed tax and penalty are not paid within seven days from the date of the issue of the order of detention in FORM GST MOV-06, action under section130 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.

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

(m) No order for confiscation of goods or conveyance, or for imposition of penalty, shall be issued without giving the person an opportunity of being heard.

(n) An order of confiscation of goods shall be passed in FORM GST MOV-11, after taking into consideration the objections filed by the person in charge of the goods (owner or his representative), and the same shall be served on the person concerned. Once the order of confiscation is passed, the title of such goods shall stand transferred to the Central Government. 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. 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.

(o) 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 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.

(p) The order referred to in clauses (n) and (o) above may be passed as a common order in the said FORM GST MOV-11.

(q) In case neither the owner of the goods nor any person other than the owner of the goods comes forward to make the payment of tax, penalty and fine imposed and get the goods or conveyance released within the time specified in FORM GST MOV­11, 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.

(r) Suitable modifications in the time allowed for the service of notice or order for auction or disposal shall be done in case of perishable and/or hazardous goods.

(s) Whenever an order or proceedings under the CGST Act is passed by the proper officer, a corresponding order or proceedings shall be passed by him under the respective State or Union Territory GST Act and if applicable, under the Goods and Services Tax (Compensations to States) Act, 2017. Further, sub-sections (3) and (4) of section 79 of the CGST Act/respective State GST Acts may be referred to in case of recovery of arrears of central tax/State tax/Union territory tax.

(t) The procedure narrated above shall be applicable mutatis mutandis for an order or proceeding under the IGST Act, 2017.

(u) Demand of any tax, penalty, fine or other charges shall be added in the electronic liability ledger of the person concerned. Where no electronic liability ledger is available in case of an unregistered person, a temporary ID shall be created by the proper officer on the common portal and the liability shall be created therein. He shall also credit the payments made towards such demands of tax, penalty or fine and other charges by debiting the electronic cash ledger of the concerned person.

(v) A summary of every order in FORM GST MOV-09 and FORM GST MOV-11 shall be uploaded electronically in FORM GST-DRC-07 on the common portal.

3. The format of FORMS GST MOV-01 to GST MOV-11 are annexed to this Circular.

4. It is requested that suitable standing orders and trade notices may be issued to publicise the contents of this Circular.

5. Difficulties, if any, in implementation of the above instructions may be brought to the notice of the Board at an early date. Hindi version will follow.

(Upender Gupta)

Commissioner (GST)