GST MOV-06 Detention Order: Section 129 Procedure

Road interceptions disrupt delivery schedules and lock up working capital. When a mobile squad or roving officer halts a consignment during transit, the driver must tender documents for physical verification. If the officer alleges discrepancies between the goods in the vehicle and the accompanying e-way bill or invoice, proceedings begin immediately under Section 129(1) of the CGST Act.

Inspection timelines and issuance of Form GST MOV-06

The inspection of goods in transit follows strict statutory guardrails. Under Rule 138C(1) of the CGST Rules, a summary report of every inspection of goods in transit must be recorded online by the proper officer in Part A of Form GST EWB-03 within 24 hours of inspection. The final report in Part B of Form GST EWB-03 must be recorded within three days of such inspection.

Under the standard operating procedure clarified in CBIC Circular No. 41/15/2018-GST, if the officer detects non-compliance during physical verification, the officer issues an order of detention in Form GST MOV-06. This order formally detains both the consignment and the vehicle. It serves as legal notice that the goods cannot move further until the taxpayer meets statutory conditions.

Section 129 penalty structure: owner vs non-owner

Once Form GST MOV-06 is served, the taxpayer faces statutory penalties under Section 129(1) of the CGST Act. The law distinguishes sharply between cases where the owner comes forward and cases where the owner does not:

• Owner comes forward under Section 129(1)(a): The goods and conveyance are released on payment of a penalty equal to 200 percent of the tax payable on such goods. For exempt goods, the penalty is equal to 2 percent of the value of goods or ₹25,000, whichever is less.
• Owner does not come forward under Section 129(1)(b): The goods and conveyance are released on payment of a penalty equal to 50 percent of the value of the goods or 200 percent of the tax payable on such goods, whichever is higher. For exempt goods, the penalty is equal to 5 percent of the value of goods or ₹25,000, whichever is less.

Under Section 129(3) of the CGST Act, the proper officer detaining or seizing goods or conveyance must issue a notice within seven days of such detention or seizure, specifying the penalty payable. Thereafter, the officer must pass an order within a period of seven days from the date of service of such notice.

Provisional release under Section 129(1)(c) and Form GST MOV-08

Paying 200 percent penalty under protest ties up funds. If you intend to dispute the merits of the interception, you can request provisional release under Section 129(1)(c) of the CGST Act.

Under paragraph 2(h) of CBIC Circular No. 41/15/2018-GST read with Rule 140(1) of the CGST Rules, where the owner or transporter comes forward and requests provisional release, the proper officer releases the goods and conveyance upon execution of a bond in Form GST MOV-08 on non-judicial stamp paper for the full value of goods and furnishing of a security in the form of a bank guarantee equivalent to the applicable penalty payable under Section 129(1)(a) or (b). Upon acceptance of the bond and bank guarantee, the officer issues a release order in Form GST MOV-05.

Worked calculation: Section 129 penalty comparison

Consider an inter-State consignment intercepted in transit with goods valued at ₹10,00,000 subject to 18 percent IGST. The tax payable on the consignment is ₹1,80,000 (computed as ₹10,00,000 × 18%). The table below illustrates the financial liabilities across different release pathways under Section 129.

Notice that under Section 129(1)(a), the penalty equals ₹3,60,000. Under Section 129(1)(b), 50 percent of the value is ₹5,00,000 (calculated as 0.50 × ₹10,00,000), which exceeds 200 percent of the tax payable (₹3,60,000), making ₹5,00,000 the demanded amount.

Conveyance release for transporters

Transporters often find their commercial trucks detained because of consignor invoicing disputes. The statute provides a specific remedy to protect logistics operators from indefinite vehicle impoundment.

Under the proviso to Section 129(6) of the CGST Act, where the person transporting goods or the owner fails to pay the penalty within 15 days from the date of receipt of the copy of the order passed under Section 129(3), the goods or conveyance are liable to be sold or disposed of. However, the first proviso specifies that the conveyance shall be released on payment by the transporter of the penalty under Section 129(3) or ₹1,00,000, whichever is less.

Order upload in DRC-07 and statutory appeal

Once the adjudicating officer passes an order under Section 129(3), procedural rules mandate formal electronic notification on the common portal. Under Rule 142(5) of the CGST Rules, a summary of the order issued under Section 129 shall be uploaded electronically in Form GST DRC-07 specifying the penalty payable. Under Rule 142(6), this order serves as the notice for recovery. To understand how the department enforces unpaid demands through bank accounts and debtors, read our guide on GST DRC-07 recovery proceedings and stay rules.

If you choose to appeal the detention order before the Appellate Authority under Section 107, specific pre-deposit rules apply. Under the proviso to Section 107(6) of the CGST Act, no appeal shall be filed against an order under Section 129(3) unless a sum equal to 25 percent of the penalty has been paid by the appellant.

Frequently asked questions

Last checked: 23 October 2026. Sources: CBIC Tax Information - Section 129 CGST Act, CBIC Circular No. 41/15/2018-GST.