Exploring GST Confistication Of Goods And Conveyance

MCQ SELF CHALLENGE # 0057 ON CONFISCATION OF GOODS OR CONVEYANCE UNDER GST

Confiscation of Goods or Conveyance under GST

Dear Professional Seniors & Friends

Warm Greetings!

Here is the Next post of #MCQ on concept-based practical professional knowledge on the confiscation of goods or conveyance under the GST Act in a unique manner to be self-answered by participants. The detailed answers to these MCQs shall be posted the next day for the self-assessment of the participants.

MCQ 57.1: Where the person in charge of the conveyance fails to produce any prescribed document and discrepancies are found at the time of inspection by the proper officer under GST, which of the following statements is correct about confiscation of goods or conveyance?

A) Confiscation can be done on non-payment of tax and penalty payable within seven days from the date of order of detention.

B) Confiscation can be done directly If the proper officer thinks that such movement of goods is being effected to evade payment of tax

C) Confiscation can be done only after providing the opportunity to be heard.

D) All of the above.

MCQ 57.2: A conveyance carrying 50 consignments is intercepted and the person in charge of such conveyance produces valid e-way bills for 30 consignments, invalid e-way bills for 15 consignments, and nothing for 5 consignments? Confiscation can be made concerning

A) 5 consignments for which no documents are available.

B) 20 consignments for invalid way bills and for which no documents are available.

Whole 50 consignments.

D) Confiscation cannot be done.

Answer MCQ Self Challenge # 0057

This post of MCQ is on provisions relating to the confiscation of goods or conveyances under the GST Act with the reputed tax consultant in Gurgaon - DSRV India.

Answer to MCQ 57.1: C) Confiscation can be done only after providing the opportunity to be heard,

Practical Analysis for MCQ 57.1:-

1. Circular No. 41/2018 dtd 13/04/2018 issued by CBIC clan ties the procedure for interception of conveyances for inspection, detention release, confiscation of goods, and conveyance in movement

2. The circular is very clear that in case the proposed tax and penalty are not paid within seven days from the date of the issue of the order of detention in FORM GST MOV-06, action under section 130 of the CGST Act shall be initiated by serving a notice in FORM GST MOV10, proposing confiscation of the goods and conveyance and imposition of penalty

3. Also where the proper officer thinks that such movement of goods is being effected to evade payment of tax, he may directly invoke section 100 of the CGST Act by issuing a notice proposing to confiscate the goods and conveyance in FORM GST MOV-10

4. But point 2(m) of said circular says that no order for confiscation of goods or conveyance, or imposition of penalty, shall be issued without giving the person an opportunity to be heard.

Based on the above analysis, the correct answer is MCQ 57.1: C) Confiscation can be done only after providing an opportunity to be heard.

Answer to MCQ 57.2: 8) 20 consignments for invalid eway bills for which no documents are available.

Practical Analysis for MCQ 57.2-

1. Circular No. 49/2018 dtd 21/06/2018 issued by CBIC seeks to modify and clarify certain things earlier issued in Circular No 41/2018 Le: procedure for interception of conveyances for inspection, detention, release, confiscation of goods and conveyance in movement

2. The government through this circular 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 made there under

3. Not carrying eway bill or an invalid eway bill is a violation of Rule 138A of CGST Rules

Based on the above analysis, the correct answer MCQ 57.2: B) 20 consignments for invalid eway bills for which no documents are available

(Disclaimer: The objective of the MOQ post is just to discuss the concept, it may happen by change of facts the answer may be different,

Please do not treat this as a professional opinion: you can have your own opinion.)

Sincere Regards!

CA Sanjay Kumar Agrawal

Mobile: 9810116321