Who is owner of the goods u/s 129(1) of CGST Act – CBIC Clarification
Under section 129(1) of the CGST Act, where any person transports any goods or stores any goods while they are in transit in contravention of the GST provisions, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance is liable to detention or seizure.
The section also provide for the release of the goods after detention or seizure, on payment of tax and penalty in cases where either the owner of the goods comes forward for payment of such tax and penalty or where the owner of the goods does not come forward for payment of such tax and penalty.
The CBIC has issued Circular No. 76/50/2018-GST clarifying certain issues related to GST.
The following clarification has been given on the question as to who us the deemed owner u/s 129(1):
Question:
Who will be considered as the “owner of the goods” for the purposes of section 129(1) of the CGST Act?
Answer:
It is hereby clarified that if the invoice or any other specified document is accompanying the consignment of goods, then either the consignor or the consignee should be deemed to be the owner.
If the invoice or any other specified document is not accompanying the consignment of goods, then in such cases, the proper officer should determine who should be declared as the owner of the goods.
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