Goods and Services Tax (GST) has revolutionized the way businesses operate in India. It has streamlined the taxation process by bringing together all indirect taxes under one umbrella. One of the important aspects of GST is the inspection of goods in movement.
When goods are transported from one place to another, it is essential to ensure that the proper GST compliances are met. The government has set up a system for the inspection of goods in movement to ensure that the correct taxes are paid and to prevent tax evasion.
Here is the step-by-step procedure for the inspection of goods in movement under GST law:
The first step in the inspection process is the generation of the e-way bill. The e-way bill is a document that contains details of the goods being transported, the consignor, and the consignee. It is generated on the GST portal by the supplier or the transporter.
Once the e-way bill is generated, it is valid for the entire duration of the transportation. The e-way bill contains a unique number known as the EBN (E-Way Bill Number). The EBN is used to track the movement of goods.
Once the e-way bill is generated, it needs to be verified by the proper officer. The proper officer can be any officer authorized by the Commissioner of GST. The officer will verify the e-way bill and ensure that all the details are correct.
If the officer finds any discrepancies, they can either reject the e-way bill or allow it to be transported under certain conditions.
After the e-way bill is verified, the next step is the physical verification of goods. The officer will inspect the goods to ensure that they match the details mentioned in the e-way bill. They will also verify the documents related to the goods such as invoices, purchase orders, and delivery challans.
If the officer finds any discrepancies, they may detain the goods and initiate penalty proceedings. In case the officer does not find any discrepancies, they will allow the goods to be transported.
Once the officer has verified the goods and documents, they will release the goods for transportation. The transporter can then transport the goods to the destination mentioned in the e-way bill.
It is important to note that the entire process of inspection of goods in movement should be completed within 24 hours of the e-way bill being presented to the officer.
In conclusion, the inspection of goods in movement is an important aspect of GST. It ensures that the correct taxes are paid and prevents tax evasion. The procedure for inspection of goods in movement is well-defined and needs to be strictly followed by businesses to avoid penalties and other legal consequences.
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