Goods in transit · Sections 129 and 130
E-way bill detention, sections 129 and 130: your response kit
When a vehicle is stopped and goods are detained, time costs money. These are the steps and forms, the deadlines on the officer, and what you can do to release the goods.
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What it is
Goods in transit can be released on payment of a penalty: 200% of the tax payable where the owner comes forward (for exempt goods, 2% of the value or ₹25,000, whichever is less). Where the owner does not come forward, the penalty is 50% of the value or 200% of the tax, whichever is higher (for exempt goods, 5% of the value or ₹25,000, whichever is less). Security of the same amount is an alternative.
CGST Act, section 129(1)(a)-(c) · source listed below
No detention or seizure is allowed without an order served on the person transporting the goods.
CGST Act, section 129(1), proviso · source listed below
The forms, from Circular 41/15/2018-GST: MOV-01 statement of the person in charge of the conveyance; MOV-02 order for physical verification; MOV-03 permission to extend the inspection beyond 3 working days; MOV-04 verification report; MOV-05 release order; MOV-06 order of detention; MOV-07 notice under section 129(3); MOV-08 bond for release on security with a bank guarantee; MOV-09 order quantifying the amount payable; MOV-10 notice proposing confiscation under section 130; MOV-11 confiscation order. Summaries of MOV-09 and MOV-11 are uploaded in DRC-07. The circular predates the 2022 change to section 129 and is used here for form names and sequence only.
CBIC Circular 41/15/2018-GST, para 2(d)-(l) · source listed below
Inspection reports go in FORM GST EWB-03: Part A within 24 hours and Part B within 3 days, extendable by up to 3 more days, counted from midnight of the date the vehicle was intercepted. A conveyance verified once in a State is not physically verified again there unless there is specific information of evasion.
CGST Rules, rule 138C(1) and Explanation · source listed below
Your rights
The penalty cannot be determined without a hearing.
CGST Act, section 129(4) · source listed below
Payment of the amount concludes the proceedings. Paying within 7 days of the notice, before the order, concludes the case through DRC-03 and DRC-05.
CGST Act, section 129(5); CGST Rules, rule 142(3), as substituted from 1 November 2024 · sources listed below
The conveyance is released on payment of the penalty or ₹1 lakh, whichever is less.
CGST Act, section 129(6) · source listed below
Before confiscation under section 130, you must be heard. The fine in lieu of confiscation is capped at the market value less the tax, and fine and penalty together must be at least equal to the tax. Up to 3 months is allowed to pay the fine before disposal.
CGST Act, section 130(2), (4) and (7) · source listed below
An order can be appealed under section 107 within 3 months of communication, with a further month on sufficient cause. The earlier 25% pre-deposit for section 129(3) orders was replaced by the Finance Act 2025 from 1 October 2025; the current proviso to section 107(6) is 10% of the penalty for an order demanding only a penalty. How it applies to a section 129 order is to be confirmed by our expert team.
CGST Act, section 107(1), (4) and (6) proviso; Finance Act 2025, section 129 · sources listed below
Your duties
If the penalty is not paid within 15 days of receiving the order, the goods or the conveyance may be sold or otherwise disposed of. The 15 days may be cut for perishable or hazardous goods.
CGST Act, section 129(6) · source listed below
To release goods on security, a bond is executed in MOV-08 with a bank guarantee for the amount.
CBIC Circular 41/15/2018-GST, para 2 · source listed below
What to do now
- Note the time and place of interception and collect every MOV form served. Ask for copies if none is given.
- Check the defect: a clerical slip in the e-way bill is argued differently from goods moving without documents. Our expert team reads the documents with you.
- Decide the same day whether to pay or furnish security to release the goods, or to reply to the MOV-07 notice.
- Paying within 7 days of the notice, before the order, concludes the case, so there is no order left to appeal against. If you want to contest the detention, ask our expert team before you pay, and keep every payment proof.
- Diarise 7 days from the notice (the officer's deadline for the order), 15 days from the order (sale) and 3 months for the appeal.
These steps are practical suggestions from our expert team, not statements of law.
Documents to keep ready
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Key time limits
| For | Time limit | Provision |
|---|---|---|
| Notice by the officer (MOV-07) | Time limitWithin 7 days of the detention or seizure | Provision and sourceCGST Act, section 129(3) |
| Order by the officer (MOV-09) | Time limitWithin 7 days of service of the notice | Provision and sourceCGST Act, section 129(3) |
| Pay within 7 days of the notice, before the order | Time limitConcludes the case through DRC-03 and DRC-05 | Provision and sourceCGST Rules, rule 142(3) |
| Pay after the order | Time limitWithin 15 days of receiving the order, failing which the goods or conveyance may be sold | Provision and sourceCGST Act, section 129(6) |
| Inspection | Time limit3 working days from the order for physical verification (MOV-02); extension needs written permission in MOV-03 | Provision and sourceCBIC Circular 41/15/2018-GST, para 2 |
| First appeal | Time limit3 months from communication of the order, and a further month on sufficient cause | Provision and sourceCGST Act, section 107(1) and (4) |
The date or period stated in your own notice or order always applies.
What can happen next
- Notice on detention of goods in transitNotice under Section 129(3); MOV-06 is the order of detention.
- Order of demand: goods in transitPay within 15 days or the goods may be sold; appeal under Section 107.
- Summary of orderSummaries of MOV-09 and MOV-11 orders are uploaded in DRC-07.
- MOV-10 and MOV-11 (confiscation)A notice proposing confiscation under Section 130, then the confiscation order, with up to 3 months to pay the fine.
Read the full guide: E-Way Bill Detention and Section 129: MOV-01 to MOV-11, Penalties, Deadlines and Release
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Recommended, not yet law
The 57th GST Council (8 October 2026) recommended amending sections 68, 129 and 130: interception only on specific intelligence and with Joint Commissioner authorisation, no interception in transit States, and no section 130 confiscation for goods in transit. These are recommendations, not yet law.
Press release of the 57th GST Council meeting, para B3-12 · source listed below
Frequently asked questions
How much must I pay to release goods detained under section 129?
Where the owner comes forward, a penalty of 200% of the tax payable (for exempt goods, 2% of the value or ₹25,000, whichever is less). Where the owner does not come forward, 50% of the value or 200% of the tax, whichever is higher (for exempt goods, 5% of the value or ₹25,000, whichever is less). Security of the same amount is an alternative.
How fast must the officer act after detaining my goods?
The notice must be issued within 7 days of the detention and the order within 7 days of service of the notice. No penalty can be determined without a hearing.
What if I pay before the order is passed?
Payment within 7 days of the notice, before the order, concludes the case through DRC-03 and DRC-05.
What happens if I do not pay after the order?
If the penalty is not paid within 15 days of receiving the order, the goods or the conveyance may be sold or otherwise disposed of. The conveyance is released on payment of the penalty or ₹1 lakh, whichever is less.
Can I appeal against a section 129 order?
Yes, under section 107 within 3 months of communication, with a further month on sufficient cause. The pre-deposit now depends on the current proviso to section 107(6), which is 10% of the penalty for an order demanding only a penalty; how it applies to your order is to be confirmed by our expert team.
What do the MOV forms mean?
MOV-01 is the statement, MOV-02 the order for physical verification, MOV-04 the verification report, MOV-06 the order of detention, MOV-07 the notice under section 129(3), MOV-09 the order quantifying the amount, MOV-10 the confiscation notice and MOV-11 the confiscation order. The circular that lists them predates the 2022 change to section 129, so the time limits come from the section itself.
Official sources
- CGST Act 2017, section 129 (detention, seizure and release of goods in transit)Read on 24 October 2026
- CBIC Circular No. 41/15/2018-GST, 13 April 2018: inspection of goods in movement, MOV forms (form names and sequence only)Read on 24 October 2026
- CGST Rules 2017, rule 138C (inspection and verification of goods in transit)Read on 24 October 2026
- CGST Rules 2017, rule 142 (notice and order for demand: DRC-01A, DRC-03, DRC-04, DRC-05)Read on 24 October 2026
- CGST Act 2017, section 130 (confiscation of goods or conveyances)Read on 24 October 2026
- CGST Act 2017, section 107 (appeals to the Appellate Authority)Read on 24 October 2026
- Finance Act 2025 (No. 7 of 2025), gazette: appeal pre-deposit for penalty-only ordersRead on 21 October 2026
- Recommendations of the 57th Meeting of the GST Council, 8 October 2026 (press release)Read on 21 October 2026
General information from the Acts, Rules, circulars and instructions named beside each point, not legal advice. The dates and periods stated in your own notice or order always apply. Our expert team can read your documents with you.