Section 69(1)

Where the Commissioner has reasons to believe that a person has committed any of the following offence

Section 132(1)(a) - makes supplies without issue of any invoice with intention to evade tax; or

Section 132(1)(b) - issues any invoice or bill without supplies leading to wrongful availment or utilisation of ITC or refund of tax; or

Section 132(1)(c) – avails ITC using the invoice or bill referred to in clause (b) or fraudulently avails ITC without any invoice or bill; or

Section 132(1)(d) – collects any amount as tax but fails to pay the same to the Government beyond a period of 3 months from the date on which such payment becomes due or

AND

which is punishable under clause (i) or (ii) of sub-section (1), or sub-section (2) of the said section, he may, by order, authorise any officer of central tax to arrest such person.

For bill to ship to model, please refer Press Release dated 23-04-2018

Rule 138B(1)

The Commissioner or an officer empowered by him in this behalf may authorize the proper officer to intercept any conveyance to verify the e-way bill in physical or electronic form for all inter-State and intra- State movement of goods.

Rule 138B(2)

The Commissioner shall get Radio Frequency Identification Device readers installed at places where the verification of movement of goods is required to be carried out and verification of movement of vehicles shall be done through such device readers where the e-way bill has been mapped with the said device.

Rule 138B(3)

The physical verification of conveyances shall be carried out by the proper officer as authorised by the Commissioner or an officer empowered by him in this behalf:

Provided that on receipt of specific information on evasion of tax, physical verification of a specific conveyance can also be carried out by any other officer after obtaining necessary approval of the Commissioner or an officer authorised by him in this behalf.

Rule 138C(2)

Where the physical verification of goods being transported on any conveyance has been done during transit at one place within the State/UT or in any other State/ UT,

no further physical verification of the said conveyance shall be carried out again in the State/UT,

unless a specific information relating to evasion of tax is made available subsequently.

Blocking of e-waybill generation facility means disabling a taxpayer from generating the e-way bill.

E-way bill are generally blocked for RP who defaults in filing GST return.

[1][Rule 138E

Notwithstanding anything contained in s/r 138(1)

no person (including a consignor, consignee, transporter, an ECO or a courier agency)

shall be allowed to furnish the information in PART A of GST EWB-01 [2][in respect of any outward movement of goods for following RP

.

For unblocking of the facility, taxpayer need to apply to jurisdictional tax official in

[9][4^th Proviso to Rule 138E

the said restriction shall not apply during the period from the 20th day of March, 2020 till the 15th day of October, 2020 in case where the return in FORM GSTR-3B or the statement of outward supplies in FORM GSTR-1 or the statement in FORM GST CMP08, as the case may be, has not been furnished for the period February, 2020 to August, 2020.]

[10][5^th Proviso to Rule 138E

the said restriction shall not apply during the period from the 1 st day of May, 2021 till the 18th day of August, 2021, in case where the return in FORM GSTR-3B or the statement of outward supplies in FORM GSTR-1 or the statement in FORM GST CMP-08, as the case may be, has not been furnished for the period March, 2021 to May, 2021.]

1st Proviso to Rule 138E

Commissioner may, [11][on receipt of an application from a RP in GST EWB-05]

on sufficient cause being shown and for reasons to be recorded in writing, by order, [12][in GST EWB-06]

allow furnishing of the information in PART A of GST EWB 01,

subject to such conditions and restrictions as may be specified by him:

2^nd Proviso to Rule 138E

no order rejecting the request of such person to furnish the information in PART A of GST EWB 01 under the first proviso shall be passed without affording the said person a reasonable opportunity of being heard

3rd Proviso to Rule 138E

Permission granted or rejected by the Commissioner of State/ UT

shall be deemed to be granted or, rejected by the Commissioner.

Explanation to Rule 138E

For the purposes of this rule, the expression ―Commissioner shall mean the jurisdictional Commissioner in respect of the persons specified in clauses (a) and (b)

FAQs on E-WAY-BILL [BLOCKING & UNBLOCKING OF EWB]-01-12-2019

Section 68(3)

Where any conveyance is intercepted by the proper officer at any place,

he may require the person in charge of the said conveyance to produce the documents prescribed under the said sub-section and devices for verification, and

the said person shall be liable to produce the documents and devices and also allow the inspection of goods.

Para 2(d) of Circular No. 41/15/2018-GST dated 13/04/2018

Where the person in charge of the conveyance fails to produce any prescribed document or where the proper officer intends to undertake an inspection, he shall record a statement of the person in charge of the conveyance in FORM GST MOV-01.

Para 2(d) of Circular No. 41/15/2018-GST dated 13/04/2018

PO shall issue an order for physical verification/inspection of the conveyance, goods and documents in GST MOV-02, requiring the person in charge of the conveyance to station the conveyance at the place mentioned in such order and allow the inspection of the goods.

Rule 138C(1)

A summary report of every inspection of goods in transit shall be recorded online by the PO in Part A of GST EWB-03 within 24 hours of inspection and

Para 2(d) of Circular No. 41/15/2018-GST dated 13/04/2018

PO shall, within 24 hours of issuance of GST MOV-02, prepare a report in Part A of FORM GST EWB-03 and upload the same on the common portal. 

Rule 138C(1)

Final report in Part B of GST EWB-03 shall be recorded within 3 days of such inspection.

Para 2(e) of Circular No. 41/15/2018-GST dated 13/04/2018

Within a period of 3 working days from the date of issue of the order in FORM GST MOV-02, PO shall conclude the inspection proceedings, either by himself or through any other proper officer authorised in this behalf.

The proper officer shall also record, on the common portal, the final report of the inspection in Part B of FORM GST EWB-03 within three days of such physical verification/inspection.

[13][Proviso to Rule 138C(1)

where the circumstances so warrant, the Commissioner, or any other officer authorised by him, may, on sufficient cause being shown, extend the time for recording of the final report in Part B of FORM EWB-03, for a further period not exceeding three days.

Explanation  to Rule 138C(1)

The period of 24 four hours or, 3 days

shall be counted from the midnight of the date on which the vehicle was intercepted.]

Para 2(e) of Circular No. 41/15/2018-GST dated 13/04/2018

Where circumstances warrant such time to be extended, he shall obtain a written permission in FORM GST MOV-03 from the Commissioner or an officer authorized by him, for extension of time beyond three working days and a copy of the order of extension shall be served on the person in charge of the conveyance.

Rule 138D

Where a vehicle has been intercepted and detained for a period exceeding 30 minutes,

transporter may upload the said information in GST EWB-04 on the common portal.

Explanation to Rule 138D

For this Chapter, ‘transported by railways’, ‘transportation of goods by railways’, ‘transport of goods by rail’ and ‘movement of goods by rail’ does not include cases where leasing of parcel space by Railways takes place.]

Para 2(f) of Circular No. 41/15/2018-GST dated 13/04/2018

On completion of the physical verification/inspection of the conveyance and the goods in movement, the proper officer shall prepare a report of such physical verification in FORM GST MOV-04 and serve a copy of the said report to the person in charge of the goods and conveyance.

Para 2(f) of Circular No. 41/15/2018-GST dated 13/04/2018

Where no discrepancies are found after the inspection of the goods and conveyance, the proper officer shall issue forthwith a release order in FORM GST MOV-05 and allow the conveyance to move further.

Where PO is of the opinion that the goods and conveyance need to be detained u/s 129 of the CGST Act, he shall issue an order of detention in FORM GST MOV-06 and a notice in FORM GST MOV-07 as per section 129(3) of the CGST Act, specifying the tax and penalty payable.

The said notice shall be served on the person in charge of the conveyance.

Please refer complete guide on Section 129

Rule 138F(1)

Where-

(a) a Commissioner of State /UT mandates furnishing of information regarding intra-State movement of goods specified in serial no. 4 and 5 in the Annexure appended to 138(14), in accordance with rule 138F(1) of the State/UT GST Rules, and

(b) the consignment value of such goods exceeds such amount, not below Rs.2  lakhs, as may be notified by the Commissioner of State tax/UT, in consultation with the jurisdictional Principal Chief Commissioner or Chief Commissioner of Central Tax, or any Commissioner of Central Tax authorised by him,

notwithstanding anything contained in Rule 138,

RP who causes intra-State movement of such goods, -

(i) in relation to a supply; or

(ii) for reasons other than supply; or

(iii) due to inward supply from an un-registered person,

shall, before the commencement of such movement within that State/UT, furnish information relating to such goods electronically, as specified in Part A of GST EWB-01, against which a unique number shall be generated:

Provided that where the goods to be transported are supplied through an e-commerce operator or a courier agency, the information in Part A of FORM GST EWB-01 may be furnished by such e-commerce operator or courier agency.

Explanation to Rule 138F(1)

For the purposes of this rule, the consignment value of goods shall be

the value, determined u/s 15, declared in an invoice, a bill of supply or a delivery challan,

includes central tax, State or Union territory tax charged

exclude value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods.

Proviso to Rule 138F(1)

where the goods to be transported are supplied through an e-commerce operator or a courier agency, the information in Part A of FORM GST EWB-01 may be furnished by such e-commerce operator or courier agency.

Rule 138F(2)

PART B of FORM GST EWB-01 shall not be required to be furnished in respect of movement of goods referred to in the sub-rule (1) and

after furnishing information in Part-A of FORM GST EWB-01, the e-way bill shall be generated in FORM GST EWB-01, electronically on the common portal.

Rule 138F(3)

The information furnished in Part A of FORM GST EWB-01 shall be made available to the registered supplier on the common portal who may utilize the same for furnishing the details in FORM GSTR-1.

Rule 138F(4)

Where an e-way bill has been generated under this rule, but goods are either not transported or are not transported as per the details furnished in the e-waybill, the eway bill may be cancelled, electronically on the common portal, within twenty-four hours of generation of the e-way bill:

Proviso to Rule 138F(4)

An e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B.

Rule 138F(5)

Notwithstanding anything contained in this rule,

no e-way bill is required to be generated-

(a) where the goods are being transported from the customs port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs;

(b) where the goods are being transported-

(i) under customs bond from an inland container depot or a container freight station to a customs port, airport, air cargo complex and land customs station, or from one customs station or customs port to another customs station or customs port, or

(ii) under customs supervision or under customs seal.

Rule 138F(6)

The provisions of sub-rule (10), sub-rule (11) and sub-rule (12) of rule 138, rule 138A, rule 138B, rule 138C, rule 138D and rule 138E shall, mutatis mutandis, apply to an e-way bill generated under this rule.

Section 122(1)(ix)

Where a taxable person who

transports any taxable goods without the cover of documents as may be specified in this behalf;

he shall be liable to pay a penalty of

Rs.10,000 or

an amount equivalent to the tax evaded or

whichever is higher.

Section 129 - Detention, seizure and release of goods and conveyances in transit

Please refer guide on section 129