Provisions under Section 129 of the Central Goods and Services Tax (CGST) Act, 2017 relating to “Detention, Seizure and Release of Goods and Conveyances in Transit”:

Section 129 of CGST Act 2017: Detention, Seizure and Release of Goods and Conveyances in Transit (CHAPTER XIX – OFFENCES AND PENALTIES)

(1) Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure and after detention or seizure, shall be released,–

(a) on payment of penalty equal to two hundred per cent. of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such penalty; [substituted clause (a) from 01/01/2022: refer Note 2(a)]

(b) on payment of penalty equal to fifty per cent. of the value of the goods or two hundred per cent. of the tax payable on such goods, whichever is higher, and in case of exempted goods, on payment of an amount equal to five per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such penalty; [substituted clause (b) from 01/01/2022: refer Note 2(a)]

(c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed:

Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods.

(2) The provisions of sub-section (6) of section 67 shall, mutatis mutandis, apply for detention and seizure of goods and conveyances. [sub-section (2) omitted from 01/01/2022: refer Note 2(b)]

(3) The proper officer detaining or seizing goods or conveyance shall issue a notice within seven days of such detention or seizure, specifying the penalty payable, and thereafter, pass an order within a period of seven days from the date of service of such notice, for payment of penalty under clause (a) or clause (b) of sub-section (1). [substituted sub-section (3) from 01/01/2022: refer Note 2(c)]

(4) No tax, interest or penalty No penalty [text substituted from 01/01/2022: refer Note 2(d)] shall be determined under sub-section (3) without giving the person concerned an opportunity of being heard.

(5) On payment of amount referred in sub-section (1), all proceedings in respect of the notice specified in sub-section (3) shall be deemed to be concluded.

(6) Where the person transporting any goods or the owner of such goods fails to pay the amount of penalty under sub-section (1) within fifteen days from the date of receipt of the copy of the order passed under sub-section (3), the goods or conveyance so detained or seized shall be liable to be sold or disposed of otherwise, in such manner and within such time as may be prescribed, to recover the penalty payable under sub-section (3): [substituted sub-section (6) with first & second proviso from 01/01/2022: refer Note 2(e)]

Provided that the conveyance shall be released on payment by the transporter of penalty under sub-section (3) or one lakh rupees, whichever is less: [substituted sub-section (6) with first & second proviso from 01/01/2022: refer Note 2(e)]

Provided further that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of fifteen days may be reduced by the proper officer. [substituted sub-section (6) with first & second proviso from 01/01/2022: refer Note 2(e)]

Note: CBEC notifies 01/07/2017 as the commencement date vide Notification 9/2017.

Amendments History:

1. The text ‘seven’ substituted with the text ‘fourteen’ in sub-section (6) vide section 127 of the CGST (Amendment) Act, 2018, followed with Notification 2/2019 on commencement date of 01/02/2019.

2. Amendments vide Section 117 of the Finance Act 2021, followed with Notification 39/2021 on commencement date of 01/01/2022:

(a) Clauses (a) and (b) in sub-section (1) substituted. Clauses (a) and (b) in sub-section (1) before substitution:

(a) on payment of the applicable tax and penalty equal to one hundred per cent. of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty; [clause (a) substituted from 01/01/2022: refer Note 2(a)]

(b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such tax and penalty; [clause (b) substituted from 01/01/2022: refer Note 2(a)]

(b) Sub-section (2) omitted;

(c) Sub-section (3) substituted. Sub-section (3) before substitution:

(3) The proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under clause (a) or clause (b) or clause (c). [sub-section (3) substituted from 01/01/2022: refer Note 2(c)]

(d) In sub-section (4), the text ‘No tax, interest or penalty’ substituted with the text ‘No penalty’;

(e) Sub-section (6) substituted. Sub-section (6) before substitution:

(6) Where the person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty as provided in sub-section (1) within seven days fourteen days [text substituted from 01/02/2019: refer Note 1] of such detention or seizure, further proceedings shall be initiated in accordance with the provisions of section 130: [sub-section (6) with proviso substituted from 01/01/2022: refer Note 2(e)]

Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of seven days may be reduced by the proper officer. [sub-section (6) with proviso substituted from 01/01/2022: refer Note 2(e)]

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CGST Act 2017: Last updated 15/02/2024
The CGST Act 2017 has been notified vide GOI Notification dated 12/04/2017, which has subsequently been amended through the CGST (Extension to J&K) Act 2017, Finance Act 2018, CGST Amendment Act 2018, Finance Act 2019, Finance Act 2020, Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance/Act 2020, Finance Act 2021, Finance Act 2022, Finance Act 2023, CGST Amendment Act 2023, CGST Second Amendment Act 2023 & Finance Act, 2024 including various Notifications/Orders issued by the Govt./ CBIC from time to time, relating to the commencement dates of various sections and provisions in the respective CGST/Amendment Acts, wherever required. Information on this page is a section-wise compilation of the amendments to the CGST Act, 2017 made through various notifications issued by CBIC from time to time (upto 15th February, 2024), with the best possible efforts for accuracy. In any case, E&OE. For official or updated information, please visit the CBIC website.

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