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Penalties Section 129 CGST — Detention and Penalty on Goods in Transit

Section 129 CGST — Detention and Penalty on Goods in Transit

CGST Act 2017129

Detention of goods in transit for e-way-bill / documentation defaults; release on payment of 200% of tax payable (100% where owner comes forward) — nil-tax goods attract ₹25,000.

The Penalty

200% of tax (100% if owner comes forward); ₹25,000 for exempted / nil-tax goods

Cap
None stated
Calculation base
Tax payable on the detained consignment (as if it were taxable supply)
Period
On detention.

When does this apply?

Goods intercepted in transit without valid tax invoice / e-way bill / delivery challan, or with mismatched documents.

Calculate this amount

This estimate applies only the rate and caps published in the authored rule for this page.

₹0₹1,00,000 × 0% tax × 200%

Worked examples

ScenarioCalculationResult
Consignment tax value ₹1,00,000, owner comes forward100% × ₹1 lakh₹1,00,000
Same consignment, owner does not come forward200% × ₹1 lakh₹2,00,000

How it is levied

Proper officer detains, issues MOV-06/07, releases on payment. Appeal lies to appellate authority; interim relief is very limited.

⚠ VERIFY

The 2022 amendment changed the s.129 penalty structure — confirm the current version applies to the intercepting-officer state as well (SGST alignment).