What does the Section Say?

Section 68 requires persons transporting goods to carry prescribed documents and devices. GST officers may intercept vehicles and verify goods in transit to ensure compliance with GST provisions.

The documents generally include tax invoices, bills of supply, delivery challans, and e-way bills where applicable. Officers may inspect goods and verify whether transportation complies with GST requirements.

The provision aims to prevent tax evasion through unaccounted movement of goods. Non-compliance may result in detention, penalty, or confiscation proceedings under relevant provisions.

Practical Trigger Points for Action under Section 68 of CGST Act (Inspection of Goods in Movement)

Section 68 empowers GST officers to intercept vehicles and verify documents relating to goods in transit. In practice, inspection is generally triggered when officers suspect non-compliance in transportation documents or possible tax evasion.

Common Trigger Points Observed by GST Professionals

1. E-Way Bill Not Available
• Goods exceeding the prescribed limit are transported without a valid E-Way Bill.
• E-Way Bill generated after interception of the vehicle.
2. Expired E-Way Bill
• Validity period of E-Way Bill has expired before completion of movement.
3. Mismatch Between Invoice and E-Way Bill
• Difference in quantity, value, HSN, consignee details, vehicle number, or place of delivery.
4. Part-B of E-Way Bill Not Updated
• Vehicle details not updated where required, especially after transshipment.
5. Movement of Goods Without Tax Invoice/Delivery Challan
• Driver unable to produce prescribed documents during verification.
6. Imported Goods Without Supporting Documents
• Non-availability of Bill of Entry or other import-related documents.
7. High-Risk Taxpayer Alerts
• GSTN analytics identify the supplier or recipient as:
• Non-filer of returns
• Suspended/cancelled GSTIN
• Fake ITC suspect
• High-risk dealer
8. Sensitive Goods Movement
• Transport of commodities frequently associated with tax evasion such as:
• Iron & Steel
• Pan Masala & Tobacco
• Scrap
• Textile
• Electronics
• FMCG goods
9. Specific Intelligence/Input
• Information received from Anti-Evasion, DGGI, State GST, Income Tax, or informers regarding possible tax evasion. Rule 138B specifically permits physical verification based on specific information.
10. Unusual Transportation Patterns
• Round-tripping of goods.
• Frequent interstate movement without corresponding business activity.
• Repeated use of same E-Way Bill.
• Vehicle number mismatch or suspicious routing.

Consequences After Detection

If discrepancies are found, officers may:

• Record statement in GST MOV-01.
• Order physical verification through GST MOV-02.
• Detain goods/conveyance under Section 129 if contravention is established.

Example

A truck transporting goods worth ₹10 lakh is intercepted. The driver produces a valid invoice and e-way bill, and the vehicle is allowed to proceed.

Key Points

• Applicable to goods in transit.
• Documents must accompany goods.
• Verification by GST officers.
• Supports e-way bill compliance.
• Prevents tax evasion.

One-Line Summary

Section 68 governs verification of goods and documents during transportation.