Section 129 of CGST Act read with

(a) Circular number 76/50/2018 GST dated 31/12/2018

(b) GST INS-04 of CGST Rules 2017

(c) Rule 140 of CGST Rules 2017

(d) Section 67 of CGST Act

Section 129 of CGST Act 2017: Detention, Seizure, Release of Goods/ Conveyances in Transit:-

Provisions under Section 129 of the Central Goods and Services Tax (CGST) Act, 2017 relating to “Detention, Seizure and Release of Goods and Conveyances in Transit”, are as under:

Section 129 of CGST Act 2017: Detention, Seizure and Release of Goods and Conveyances in Transit 

(1) Notwithstanding anything contained in this Act, where any person

transports any goods or stores any goods while they are in transit

 in contravention of the provisions of this Act or the rules made thereunder,

all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure and after detention or seizure, shall be released,–

(a) on payment of the applicable tax and penalty equal to one hundred per cent of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty;

(b) on payment of the applicable tax and penalty equal to the fifty per cent of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such tax and penalty.

(c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed (GST-INS04 CGST Rules 2017 and Rule 140 of CGST Rules 2017)

Download INS-04 

Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods.

(2) The provisions of sub-section (6) of section 67 shall, mutatis mutandis, apply for detention and seizure of goods and conveyances.

(3) The proper officer detaining or seizing goods or conveyances

shall issue a notice

specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under clause (a) or clause (b) or clause (c).

(4) No tax, interest or penalty shall be determined under sub-section (3) without giving the person concerned an opportunity of being heard.

(5) On payment of amount referred in sub-section (1), all proceedings in respect of the notice specified in sub-section (3) shall be deemed to be concluded.

(6) Where the person transporting any goods or the owner of the goods

fails to pay the amount of tax and penalty as provided in sub-section (1) within fourteen days

of such detention or seizure, further proceedings shall be initiated in accordance with the provisions of Section 130

Provided that where the detained or seized goods are perishable or hazardous in nature

or are likely to depreciate

in value with passage of time, the said period of fourteen days may be reduced by the proper officer.

Thanks & Regards

CA Rahul Gupta

RVG & Co

Chartered Accountants