As per the Kerala State Goods and Services Tax Act, 2017, and the Central Goods and Services Tax Act, 2017, the GST department has the power to detain, seize, and release goods and conveyances if they are being transported in violation of the provisions of the Act.
The Kerala GST department has issued instructions on the procedure to be followed for detention, seizure, and release of goods and conveyances in the state. Some of the key points to be noted are:
1. Grounds for detention: The GST department can detain a goods vehicle if the driver or the person in charge of the vehicle fails to produce the required documents such as invoice, e-way bill, delivery challan, etc. The department can also detain a vehicle if it has reason to believe that the goods are being transported in contravention of the provisions of the GST Act.
2. Procedure for detention: If a vehicle is detained, the person in charge of the vehicle will be issued a notice in Form GST MOV-06, specifying the reasons for detention and the provisions of the GST Act contravened. The person will have to respond to the notice within seven days.
3. Procedure for seizure: If the person in charge of the vehicle fails to respond to the notice or if the response is not satisfactory, the GST department can seize the goods and the vehicle. A notice in Form GST MOV-07 will be issued specifying the reasons for seizure and the person's right to appeal against the order of seizure.
4. Release of goods and conveyance: If the person in charge of the vehicle furnishes a security equivalent to the tax and penalty payable or pays the tax and penalty, the goods and the vehicle can be released. The person can also file an appeal against the order of detention or seizure.
It is important for businesses and transporters to ensure that they comply with the provisions of the GST Act and carry all the necessary documents while transporting goods to avoid detention or seizure of their goods and conveyances.
The instructions for detention and seizure of goods and conveyances in Kerala under GST are as follows:
1. The officer carrying out the detention or seizure of goods and conveyances shall issue a notice in Form GST MOV-06, specifying the grounds of detention or seizure and also give an option to the person from whom the goods or conveyances have been seized to pay the applicable tax and penalty.
2. If the person from whom the goods or conveyances have been seized pays the applicable tax and penalty, the goods or conveyances shall be released.
3. If the person does not pay the applicable tax and penalty within 7 days from the date of detention or seizure, the goods or conveyances shall be liable for confiscation and further proceedings shall be initiated under the GST Act.
4. The officer shall maintain a record of all the goods and conveyances detained or seized, along with details such as the registration number of the conveyance, the name of the driver, the name of the owner of the goods, the description of the goods, the quantity of the goods, and the place and date of detention or seizure.
5. The officer shall also issue a notice in Form GST MOV-07 for the release of the goods or conveyances, after the applicable tax and penalty have been paid. The person from whom the goods or conveyances have been seized shall submit a copy of the notice, along with proof of payment of tax and penalty, to the officer carrying out the detention or seizure.
As per the GST law, the penalty for detention, seizure or release of goods and conveyances in Kerala is as follows:
1. Detention of Goods: The proper officer may issue an order for the detention of goods and conveyances, where the person transporting such goods or conveyances fails to produce the documents required under the GST law.
2. Seizure of Goods: The proper officer may issue an order for the seizure of goods and conveyances, where the person transporting such goods or conveyances fails to produce the documents required under the GST law, or where such goods or conveyances are being transported in contravention of the GST law.
3. Penalty for Detention: The proper officer may impose a penalty of up to Rs. 50,000 on the person transporting the goods or conveyances for the detention of goods.
4. Penalty for Seizure: The proper officer may impose a penalty of up to the market value of the goods or conveyances or up to Rs. 1 lakh, whichever is less, on the person transporting the goods or conveyances for the seizure of goods.
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