Detention meaning in GST Act of India

By | May 12, 2018
(Last Updated On: May 13, 2018)

Detention meaning in GST Act of India

Here we have compiled the Study material on detention under GST

Detention meaning

Meaning of Detention  has not been defined under GST Act of India

Detention’ means the goods are temporarily detained by officers to check whether there is any violation of law. If there is any violation, goods are seized. Otherwise, goods are released.

Often ‘detention’ is only by verbal instructions and goods can be released without any formality, if the documents etc. are found to be in order.

 What is the distinction in law between ‘Seizure’ and ‘Detention’?

Ans. Denial of access to the owner of the property or the person who possesses the property at a particular point of time by a legal order/notice is called detention.

Seizure is taking over of actual possession of the goods by the department. Detention order is issued when it is suspected that the goods are liable to confiscation. Seizure can be made only on the reasonable belief which is arrived at after inquiry/investigation that the goods are liable to confiscation. [ refer GST-Inspection, Search, Seizure and Arrest -FAQs on GST by CBEC ]

 Does GST Act(s) have any power of detention of goods and conveyances?

Ans. Yes, under Section 129 of CGST/SGST Act, an officer has power to detain goods along with the conveyance (like a truck or other types of vehicle) transporting the goods. This can be done for such goods which are being transported or are stored in transit in violation of the provisions of CGST/SGST Act. Goods which are stored or are kept in stock but not accounted for can also be detained. Such goods and conveyance shall be released after payment of applicable tax or upon furnishing security of equivalent amount.  [ refer GST-Inspection, Search, Seizure and Arrest -FAQs on GST by CBEC ]

GST Detention : Free study material

Category: GST

About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com

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