15 Jul 2017Posted By: Pulkit Gupta


What will happen if goods transport without GST invoice

Union Government has defined total 21 offenses under GST. For easy understanding these have been classified into five sub categories, these are:-

  1. Fake/wrong invoices

  2. Fraud

  3. Tax evasion

  4. Supply/transport of goods

  5. Others

If a transport carrying freight travels without an invoice, then this comes under category 4. The government has also made certain penalties for these categories. In this case, there can be Seizure, Detention & Confiscation of goods transport. Authorized officer-in-charge is given the power to check the documents of the transport of goods. If any goods transport is found to travel without tax invoice, then there can be three situations:-

  1. Detention of goods

It means that if any penalty or fine is imposed against any goods, then, the owner has no right to move the goods unless and until the fine has been paid. The real ownership still lies with the owner.

  1. Seizure of goods

In this case, if the owner is found guilty, then the department seizes the goods.

  1. Confiscation

In this case, the ownership and possession of goods goes in the hands of the Government. The goods will be confiscated in the following cases:-

  • Goods found against GST rules.

  • Goods are supplied without registering.

  • Illegal means of transportation.

 

If any problem related to documents is found in the freight, then, two conditions may arise:-

  • If the owner of the goods comes forward — in this case, 100% penalty (equal to the amount of tax) will be charged. 

  • If the owner does not come forward — 50% of the value of goods before tax will be charged as penalty.

 

The calculation of penalty can be explained below:

Particulars

When owner comes forward

When owner does not come forward

Value of goods

1,00,000

1,00,000

GST@16%

16,000

16,000

Penalty

16,000

50,000

Total Payment

32,000

66,000

 

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