Confiscation under GST

Both the goods and the conveyance will be confiscated if any person – 

• Supplies/receives goods in contravention of the provisions of GST to evade tax
• Cannot account for the presence of seized goods
• Supplies goods without registering (even though he is liable to register)
• Violates rules to evade tax
• Uses any conveyance/vehicle to transport goods in contravention to the GST provisions

However, the vehicle might not be confiscated if the owner of the vehicle can prove that it was used without his knowledge.

Penalty will also be applicable in each of the above cases. You can refer to the ripples on Penalties for further reference.

Before confiscating the goods, the tax officer shall give an option of paying a fine instead of confiscation.