In this article we will understand when goods in transit can be detained or seized by the GST officer:
Before detaining and seizing goods the first step is to inspect goods in transit. For this, the authorized officer has the power to inspect the goods in transit. So person-in-charge must carry all the required documents such as
As these words are commonly used under GST it is important to know what makes these two words distinct from each other. So, here is the difference between the Detention and Seizure Detention Detention is a condition when the owner of the goods is not allowed to access the goods. But it shall be noted that the ownership of the detained goods remains with the owner. The detention order is passed by the government at the time of under suspicion that the goods are liable to be confiscated. Seizure Unlike detention, in seizure, the actual possession of the goods is taken by the department. However, the seizure of goods can only take place after a proper inspection of goods has been done and where the department has found that the goods inspected shall be confiscated. Now the question arises what is confiscation? Confiscation of the goods is an ultimate act that takes place after detention and seizure. Under confiscation, the ownership of the goods is take away from the owner by the government authority.
In case if the person-in-charge is transporting the consignment without any proper documents or in contravention to the GST Act, then the consignment along with the transporting vehicle can be seized by the authorized officer. However, both things can be released after paying the tax and penalty. The quantum of penalty is based on two scenarios and they are:
For better understanding let us seen an example, how the penalty process works under GST:
Particulars | Owner coming forward | Owner not coming forward |
---|---|---|
Value of goods | 2,00,000 | 2,00,000 |
GST @12% | 24,000 | 24,000 |
Penalty | 24,000 | 1,00,000 |
Total Payment | 48,000 | 1,24,000 |
So, through this, we can conclude that the taxpayer needs to pay more if he does not come forward.
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