Section 129 of CGST Act: Detention, Seizure and Release of Goods and Conveyances in Transit
Section 129 of the Central Goods and Services Tax Act, 2017 provides a special mechanism for detention or seizure of goods and the conveyance used to transport them when goods are transported, or stored while in transit, in contravention of the CGST Act or the rules.
Meaning and scope of Section 129
The provision begins with a non-obstante clause and applies where goods are transported or stored while in transit in contravention of the Act or the rules. The goods, the conveyance used for transport and the related documents may be detained or seized. Release is governed by the penalty and security mechanism in sub-section (1).
In practical transit cases, compliance commonly involves the tax invoice, bill of supply or delivery challan, as applicable, and the e-way bill requirements under Rule 138 and the connected transit-verification rules. Whether an e-way bill is required depends on the statutory rules, exemptions and the nature and value of the movement.
Section 129 - updated statutory position
Sub-section (1): Where goods are transported or stored while in transit in contravention of the Act or rules, the goods, conveyance and related documents are liable to detention or seizure. Release is available:
(a) Owner comes forward: for taxable goods, on payment of penalty equal to 200% of the tax payable. For exempt goods, the amount is 2% of the value of goods or Rs. 25,000, whichever is less.
(b) Owner does not come forward: for taxable goods, on payment of penalty equal to 50% of the value of the goods or 200% of the tax payable, whichever is higher. For exempt goods, the amount is 5% of the value of goods or Rs. 25,000, whichever is less.
(c) Security: release may also be obtained by furnishing security equivalent to the amount payable under clause (a) or clause (b), in the prescribed form and manner.
Detention order: goods or conveyance cannot be detained or seized without serving an order of detention or seizure on the person transporting the goods.
Sub-section (2): omitted with effect from 1 January 2022.
Sub-section (3): the proper officer must issue a notice within seven days of detention or seizure specifying the penalty payable, and must pass the penalty order within seven days from service of that notice.
Sub-section (4): no penalty may be determined under sub-section (3) without giving the person concerned an opportunity of being heard.
Sub-section (5): on payment of the amount referred to in sub-section (1), proceedings relating to the notice under sub-section (3) are deemed concluded.
Sub-section (6): if the penalty is not paid within 15 days from receipt of the order, the detained or seized goods or conveyance are liable to sale or other disposal in the prescribed manner to recover the penalty. A transporter can obtain release of the conveyance on payment of the penalty under sub-section (3) or Rs. 1 lakh, whichever is less. The 15-day period may be reduced for perishable, hazardous or depreciating goods.
Penalty under Section 129 at a glance
| Situation | Taxable goods | Exempt goods |
|---|---|---|
| Owner comes forward | 200% of tax payable on the goods | 2% of value or Rs. 25,000, whichever is less |
| Owner does not come forward | 50% of value or 200% of tax payable, whichever is higher | 5% of value or Rs. 25,000, whichever is less |
Procedure after detention or seizure
- The proper officer detains or seizes goods/conveyance for a transit contravention and serves the detention or seizure order.
- A notice specifying the penalty must be issued within seven days of detention or seizure.
- The person concerned must be given an opportunity of being heard before penalty is determined.
- The proper officer must pass the penalty order within seven days from service of the notice.
- Payment of the amount under sub-section (1) concludes the proceedings relating to that notice.
- If the penalty remains unpaid for 15 days after receipt of the order, the goods or conveyance may be sold or otherwise disposed of as prescribed, subject to the special rule for release of the conveyance and the shorter period possible for perishable or hazardous goods.
Rule 138 and e-way bill compliance
Rule 138 of the CGST Rules deals with information to be furnished before movement of goods and generation of an e-way bill. As a general rule, movement of goods of consignment value exceeding Rs. 50,000 requires the prescribed e-way bill information, subject to the rule's exceptions and special cases. Businesses should also check the current rules and notifications applicable to the particular movement.
Appeal against a Section 129 order
An order under Section 129(3) is appealable under Section 107 of the CGST Act. A special proviso to Section 107(6) requires payment of 25% of the penalty before an appeal against an order under Section 129(3) is filed. The limitation and procedural requirements of Section 107 should also be checked before filing.
Section 129 and Section 130 are now delinked
Before the amendments effective from 1 January 2022, the former Section 129(6) contemplated further proceedings under Section 130 on non-payment. The amended Section 129(6) instead provides for recovery through sale or other disposal of detained or seized goods or conveyance. Section 130 continues to deal separately with confiscation in the circumstances specified in that provision.
Related provisions
For transit compliance and enforcement, readers may also refer to Section 122 - Penalty for certain offences, Section 126 - General disciplines related to penalty, Section 130 - Confiscation, and the site's guide on GST e-way bill requirements, validity and documents.
Key takeaway
Section 129 is a time-bound transit enforcement provision. The current law focuses on a statutory penalty for release, a seven-day deadline for the notice, a further seven-day deadline for the order, a mandatory opportunity of hearing, and recovery by sale or disposal if the penalty remains unpaid for the prescribed period. Because e-way bill and transit requirements can depend on notifications and the facts of movement, the current official rules should be checked for each case.
Updated: 15 September 2026. This page is a general legal information resource; statutory text, rules, notifications and facts of the individual case should be verified before acting.