Amended and updated notes on section 130 of CGST Act, 2017. Detail discussion on provisions and rules related to confiscation of goods or conveyances and levy of penalty.
Chapter XIX (Sections 122–138) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to offences and penalties. Section 130 of CGST 2017 provides for confiscation of goods or conveyances and levy of penalty.
Recently, we have discussed in detail section 129 (Detention, seizure and release of goods and conveyances in transit) of CGST Act 2017. Today, we learn the provisions of section 130 of Central GST Act 2017.
Section 130 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 130 is 1-7-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | XIX |
| Chapter Name | Offences and Penalties |
| Section No. | 130 |
| Section Name | Confiscation of goods or conveyances and levy of penalty |
| Updated 2024 Edition | GST Law Book PDF |
Relevant Rules and Forms for GST Section 130:
- Rule 142: Notice and order for demand of amounts payable under the Act
- FORM GST DRC – 01: Summary of Show Cause Notice
- FORM GST DRC – 01A: Intimation of tax ascertained as being payable under section 73(5)/74(5)
- FORM GST DRC – 02: Summary of Statement
- FORM GST DRC – 03: Intimation of payment made voluntarily or made against the show cause notice (SCN) or statement or intimation of tax ascertained through FORM GST DRC-01A.
- FORM GST DRC – 04: Acknowledgement of acceptance of payment made voluntarily
- FORM GST DRC – 05: Intimation of conclusion of proceedings
- FORM GST DRC – 06: Reply to the Show Cause Notice
- FORM GST DRC – 07: Summary of the order
- FORM GST DRC – 07A: Summary of the order creating demand under existing laws
- FORM GST DRC – 08: Summary of Rectification /Withdrawal Order
Section 130 of Central GST – Confiscation of goods or conveyances and levy of penalty1
Section 130 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017.
Section 130(1) of CGST Act
Section 130(1): Notwithstanding anything contained in this Act, if any person—
- (i) supplies or receives any goods in contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or
- (ii) does not account for any goods on which he is liable to pay tax under this Act; or
- (iii) supplies any goods liable to tax under this Act without having applied for registration; or
- (iv) contravenes any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or
- (v) uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of this Act or the rules made thereunder unless the owner of the conveyance proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any, and the person in charge of the conveyance,
then, all such goods or conveyances shall be liable to confiscation and the person shall be liable to penalty under section 122.
Section 130(2) of CGST Act
Section 130(2): Whenever confiscation of any goods or conveyance is authorised by this Act, the officer adjudging it shall give to the owner of the goods an option to pay in lieu of confiscation, such fine as the said officer thinks fit:
Provided that such fine leviable shall not exceed the market value of the goods confiscated, less the tax chargeable thereon:
Provided further that the aggregate of such fine and penalty leviable shall not be less than the amount of penalty leviable under sub-section (1) of section 129:
Provided also that where any such conveyance is used for the carriage of the goods or passengers for hire, the owner of the conveyance shall be given an option to pay in lieu of the confiscation of the conveyance a fine equal to the tax payable on the goods being transported thereon.
Section 130(3) of CGST Act
Section 130(3): Where any fine in lieu of confiscation of goods or conveyance is imposed under sub-section (2), the owner of such goods or conveyance or the person referred to in sub-section (1), shall, in addition, be liable to any tax, penalty and charges payable in respect of such goods or conveyance.
Section 130(4) of CGST Act
Section 130(4): No order for confiscation of goods or conveyance or for imposition of penalty shall be issued without giving the person an opportunity of being heard.
Section 130(5) of CGST Act
Section 130(5): Where any goods or conveyance are confiscated under this Act, the title of such goods or conveyance shall thereupon vest in the Government.
Section 130(6) of CGST Act
Section 130(6): The proper officer adjudging confiscation shall take and hold possession of the things confiscated and every officer of Police, on the requisition of such proper officer, shall assist him in taking and holding such possession.
Section 130(7) of CGST Act
Section 130(7): The proper officer may, after satisfying himself that the confiscated goods or conveyance are not required in any other proceedings under this Act and after giving reasonable time not exceeding three months to pay fine in lieu of confiscation, dispose of such goods or conveyance and deposit the sale proceeds thereof with the Government.
- Section 130 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎