CGST Rule 138C of Central Goods and Services Tax Rules, 2017 – Inspection and verification of goods

The Central Goods and Services Tax Act, 2017

The Central Goods and Services Tax Rules, 2017

Chapter-XVI E-Way Rules

Rule 138C: Inspection and verification of goods.

¹[²[138C. (1) A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST EWB-03 within twenty four hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such inspection.

³[Provided that where the circumstances so warrant, the Commissioner, or any other officer authorised by him, may, on sufficient cause being shown, extend the time for recording of the final report in Part B of FORM EWB-03, for a further period not exceeding three days.

Explanation.- The period of twenty four hours or, as the case may be, three days shall be counted from the midnight of the date on which the vehicle was intercepted.]

(2) Where the physical verification of goods being transported on any conveyance has been done during transit at one place within the State or Union territory or in any other State or Union territory, no further physical verification^c2 of the said conveyance shall be carried out again in the State or Union territory, unless a specific information relating to evasion of tax is made available subsequently.]]

References

Amendments:

1. Inserted by Central Goods and Services Tax (Sixth Amendment) Rules, 2017 vide Notification No. 27/2017-Central Tax dated 30th August, 2017, w.e.f. 01.04.2018 [Notification No. 15/2018 – Central Tax dated 23.03.2018].

2. Substituted by the Central Goods and Services Tax (Second Amendment) Rules, 2018 vide Notification No. 12/2018-Central Tax  dated 7th March, 2018, w.e.f. 01.04.2018 [Notification No. 15/2018-Central Tax dated 23.03.2018], for the Rule:

“138C. (1) A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST EWB-03 within twenty four hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such inspection.

(2) Where the physical verification of goods being transported on any conveyance has been done during transit at one place within the State or in any other State, no further physical verification of the said conveyance shall be carried out again in the State, unless a specific information relating to evasion of tax is made available subsequently.”

3. Inserted by Central Goods and Services Tax (Sixth Amendment) Rules, 2018 vide Notification No. 28/2018-Central Tax  dated 19th June, 2018, w.e.f. 19.06.2018.

Circulars:

c1. The hard copies of the notices/orders issued in the specified FORMS by a tax authority may be shown as proof of initiation of action by a tax authority by the transporter/registered person to another tax authority as and when required. Further, it is clarified that only such goods and/or conveyances should be detained/confiscated in respect of which there is a violation of the provisions of the GST Acts or the rules made thereunder.

Illustration: Where a conveyance carrying twenty-five consignments is intercepted and the person-in-charge of such conveyance produces valid e-way bills and/or other relevant documents in respect of twenty consignments, but is unable to produce the same with respect to the remaining five consignments, detention/confiscation can be made only with respect to the five consignments and the conveyance in respect of which the violation of the Act or the rules made thereunder has been established by the proper officer. [Circular No. 49/23/2018-GST dated 21.06.2018]

c2. 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 dated 13.04.2018]