The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular modifying the procedure for interception of conveyance under the Goods and Services Tax (GST) regime.
In order to ensure a uniform implementation of the provisions of the CGST Act across all the field formations, the Board had issued a circular clarifying the procedure for interception of conveyances for inspection of goods in movement, and detention, release, and confiscation of such goods and conveyances.
The circular issued by the Board today has made some changes in the earlier circular.
It is stated that as per rule 138C (2) of the Central Goods and Services Tax Rules, 2017, where the physical verification of goods being transported on any conveyance has been done during transit at one place within a State or Union territory or in any other State or Union territory, no further physical verification 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. Since the requisite FORMS are not available on the common portal currently, any action initiated by the State tax officers is not being intimated to the central tax officers and vice-versa, doubts have been raised as to the procedure to be followed in such situations.
The circular clarified that 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.
It was further 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.
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