When goods are moving interstate, the goods are permitted to be stopped an inspected. One of the major advances with the GST was the free movement of goods interstate. It is not to say all inspections would stop but the long lines at state borders would end.
When GST started there was a reduction in border wait times and inspections but from July until December of last year there was a growing concern about tax evasion. The e-way bill system was envisioned from the beginning of the GST but its implementation was delayed for many times. Before the GST each state had created trip permits and way bills. Most cases – these were paper forms that varied between state to state. There was no way for a single permit to be valid across state lines.
e-way bill changed this by allowing for a single unified platform for the exchange of goods movements across all of India. The value of the e way bill is so high that if a conveyance is stopped for verification that if a conveyance operator provides an e-way bill to an officer at a stop then the conveyance can continue as per Circular 41/15/2018.
Now if the e way bill is not available then there is now a uniform process in place for the office to follow in order to inspect and review the goods and then allow them to move.
If the documents are lacking or there is no e-way bill then the first step is filing of FORM GST MOV-01. This form is made to begin the inspection and the FORM GST MOV-02 will be there for the physical inspection. Now within 24 hours then FORM GST EWB-03 PART A will be filed by the officer and uploaded into the common portal. If needed there can be an extension in FORM GST MOV-03 beyond the 3 working days.
When the inspection is completed then FORM GST MOV-04 will be prepared and this will be given to the operator of the conveyance and PART B of FORM GST EWB-03 will be filed on the common portal. If there are no discrepancies found then a release order FORM GST MOV-05 is issued and the goods can move. Otherwise there is a detention order FORM GST MOV-06 and FORM GST MOV-07 issued for the tax and penalty.
If a payment is made then FORM GST MOV-05 is issued and FORM GST MOV-09 is uploaded to the common portal. If a bond is needed then there is a release with FORM GST MOV-05 and FORM GST MOV-08 is done as well.
Failure to pay the tax within 7 days will result in an issuance of a detention order FORM GST MOV-06 and then a notice of confiscation FORM GST MOV-10. In fact, the officer can directly move to FORM GST MOV-10 for confiscation if there a belief there is tax evasion. If confiscation does occur then FORM GST MOV-11 is used.
What is important to note is that if you fail to have the documents you only end up in the path. When a e way bill is presented and it is verified then the conveyance and its goods are already on its way to the next stop.