e-Way bill has become mandatory for inter-state and intra state transport in India where goods are being transported by a vehicle and have a value of more than ₹50, 000.
The main objective behind introduction of e-Way bill is to offer transparency in operations and avoid tax evasion. As a transporter, there must be two documents which should accompany the goods – e-Way bill and Invoice/challan of the goods being transported.
Rule 138B provides for verification of documents and conveyances.
Rule 138 B(1) provides that the Commissioner or an Officer empowered by him in this behalf may authorize the proper officer to intercept any conveyance to verify the e-way bill or the e-way bill number in physical form for all inter-State and intra-State movement of goods.
The Commissioner shall get Radio Frequency Identification Device readers installed at places where the verification of movement of goods is required to be carried out and verification of movement of vehicles shall be done through such device readers where the e-way bill has been mapped with the said device.
You can get more information about Radio Frequency Identification Device Here
Interception by Officer
While the goods are being transported from one state to the other, a proper officer may stop the vehicle for inspection. The inspection may be in any of the two:
- Physical Verification
- Document Verification
Physical Verification: In this case, the proper officer will verify the goods by himself which are being transported.
Document Verification: In this case, the proper officer will verify the goods based on documents such as e-Way bill and the invoice.
NOTE: If any vehicle has been physically verified in one state, the same cannot be physically verified in any other state/ UT. However, if the officer has information with respect to tax evasion then he may demand a physical verification once more.
How is Interception executed?
Interception or inspection is done by a proper officer. While doing so, the officer fills up GST EWB – 03. Part A of GST EWB – 03 contains a summary report of the inspection and needs to be filled within 24 hours of inspection. On the other hand, Part B of GST EWB – 03 contains a final report and needs to be filled within 3 days of interception.
When transporter is not carrying any documents
There may arise a situation where the transporter is not carrying any document. In that case, the proper officer will first make a record in Form GST MOV – 01. Then in Form GST MOV – 02 the proper officer will issue an order for inspection. Finally, based on inspection a report will be prepared by the proper officer in Form GST MOV – 04.
When transporter is found guilty
Upon inspection, if the transporter is found guilty of either evading taxes or not carrying all the necessary document, then the proper officer will pass a detention order through Form GST MOV – 06 and then immediately a notice levying tax and penalty will also be issued through Form GST MOV – 07.
The owner of the goods may or may not accept the imposed tax and penalty by the proper officer. In case, the imposed tax and penalty is not accepted then the owner of the goods may raise a dispute.
When transporter is not found guilty?
Upon inspection, when the transporter is not found guilty or all his documents are as per the required, then the proper officer will issue a releasing order through Form GST MOV – 05.
Failure to pay imposed tax and penalty on time
The proper officer will issue a notice through Form GST MOV – 10 to the owner of goods which will show his power to confiscate the goods along with the vehicle if the imposed tax and penalty is accepted but not paid within 90 days (3 months). However, before the final order is passed, the owner of the goods will be given an opportunity of being heard.
Final order takes place through Form GST – MOV 11. In this form summary of the order is mentioned along with information with respect to the vehicle and goods. The ownership gets transferred in the name of Central Government. When the owner clears the taxes and penalty, he gets the possession of vehicle and goods back.