Section 68 of CGST Act - Inspection of Goods in Movement
Section 68 of the Central Goods and Services Tax Act, 2017 empowers the Government to prescribe documents and devices that must accompany specified consignments and authorises the proper officer to verify those documents and inspect goods when a conveyance is intercepted.
Section 68 - statutory provision
Sub-section (1): The Government may require the person in charge of a conveyance carrying a consignment of goods above the prescribed value to carry the prescribed documents and devices.
Sub-section (2): Details of the documents required under sub-section (1) are to be validated in the prescribed manner.
Sub-section (3): When such a conveyance is intercepted, the proper officer may require the person in charge to produce the prescribed documents and devices for verification. The person in charge must produce them and permit inspection of the goods.
In practical terms, Section 68 is the statutory foundation for verification of goods in transit. The detailed operational requirements are primarily contained in the e-way bill provisions of the CGST Rules, 2017, especially Rules 138, 138A, 138B, 138C and 138D.
Documents and devices to be carried - Rule 138A
Rule 138A deals with the documents and devices to be carried by the person in charge of a conveyance. As applicable, the person in charge should carry the invoice, bill of supply or delivery challan and the e-way bill or e-way bill number in the permitted form. For imported goods, the rule also requires the prescribed bill of entry documentation.
Where an invoice is issued under the notified e-invoicing procedure, the QR code containing the Invoice Reference Number may, subject to Rule 138A, be produced electronically for verification instead of a physical copy of the tax invoice.
For a practical overview, see GST e-way bill requirement, validity and documents required.
Interception, document verification and physical inspection
Rule 138B - verification of documents and conveyances
Rule 138B provides the mechanism for authorised officers to intercept a conveyance and verify the e-way bill or e-way bill number. Physical verification of a conveyance is to be carried out by an authorised proper officer, subject to the rule and any applicable instructions.
Rule 138C - inspection and verification report
Rule 138C prescribes online reporting of inspection and verification of goods in transit. It also limits repeated physical verification after verification has already been carried out, unless specific information relating to tax evasion subsequently becomes available.
Rule 138D - reporting detention of a vehicle
Rule 138D provides a portal facility for the transporter to upload information where a vehicle has been intercepted and detained beyond the period specified in that rule.
Practical compliance points
- Ensure the tax invoice, bill of supply or delivery challan correctly describes the goods and movement.
- Generate and update the e-way bill where Rule 138 requires it, subject to the applicable exemptions and special cases.
- Keep the e-way bill number and supporting documents readily available for verification during transit.
- For imported goods, verify the additional bill of entry requirement under Rule 138A.
- Where e-invoicing applies, ensure the IRN and QR-code requirements are properly complied with.
- Maintain consistency among the invoice, e-way bill, vehicle details, quantity, value, consignor and consignee particulars.
Related provisions of the CGST Act
Section 68 forms part of Chapter XIV of the CGST Act. Related provisions include Section 67 - Power of inspection, search and seizure, Section 69 - Power to arrest, Section 70 - Power to summon persons to give evidence and produce documents, Section 71 - Access to business premises and Section 72 - Officers to assist proper officers.
This article is a general statutory guide. Notifications, circulars, State/UT e-way bill provisions and later amendments may affect a particular movement of goods.