Text
The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Section 129, verbatim (show)
*Section 129. Detention, seizure and release of goods and conveyances in transit.-
(1) Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure and after detention or seizure, shall be released,-
1[(a) on payment of penalty equal to two hundred per cent. of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such penalty;
(b) on payment of penalty equal to fifty per cent. of the value of the goods or two hundred per cent. of the tax payable on such goods, whichever is higher, and in case of exempted goods, on payment of an amount equal to five per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such penalty;]
(c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed:
Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods. 2[****]
3[(3) The proper officer detaining or seizing goods or conveyance shall issue a notice within seven days of such detention or seizure, specifying the penalty payable, and thereafter, pass an order within a period of seven days from the date of service of such notice, for payment of penalty under clause (a) or clause (b) of sub-section (1).]
(4) 4[No penalty] shall be determined under sub-section (3) without giving the person concerned an opportunity of being heard.
(5) On payment of amount referred in sub-section (1), all proceedings in respect of the notice specified in sub-section (3) shall be deemed to be concluded.
5[(6) Where the person transporting any goods or the owner of such goods fails to pay the amount of penalty under sub-section (1) within fifteen days from the date of receipt of the copy of the order passed under sub-section (3), the goods or conveyance so detained or seized shall be liable to be sold or disposed of otherwise, in such manner and within such time as may be prescribed, to recover the penalty payable under sub-section (3):
Provided that the conveyance shall be released on payment by the transporter of penalty under sub-section (3) or one lakh rupees, whichever is less:
Provided further that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of fifteen days may be reduced by the proper officer.]
*Enforced w.e.f. 1st July, 2017.
1. Substituted (w.e.f. 1st January, 2022 vide Notification No. 39/2021-C.T., dated 21st December, 2021) by s. 117(i) of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021. "(a) on payment of the applicable tax and penalty equal to one hundred per cent. of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty; (b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such tax and penalty;"
2. Omitted (w.e.f. 1st January, 2022 vide Notification No. 39/2021-C.T., dated 21st December, 2021) by s. 117(ii) of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021 for "(2) The provisions of sub-section (6) of section 67 shall, mutatis mutandis, apply for detention and seizure of goods and conveyances."
3. Substituted (w.e.f. 1st January, 2022 vide Notification No. 39/2021-C.T., dated 21st December, 2021) by s. 117(iii) of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021. "(3) The proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under clause (a) or clause (b) or clause (c)."
4. Substituted (w.e.f. 1st January, 2022 vide Notification No. 39/2021-C.T., dated 21st December, 2021) by s. 117(iv) of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021 for "No tax, interest or penalty."
5. Substituted (w.e.f. 1st January, 2022 vide Notification No. 39/2021-C.T., dated 21st December, 2021) by s. 117(v) of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021 for "(6) Where the person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty as provided in sub-section (1) within fourteen days of such detention or seizure, further proceedings shall be initiated in accordance with the provisions of section 130: Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of seven days may be reduced by the proper officer."
Sub-section (1)
129(1) and provisoDetention power and service
Notwithstanding anything contained in this ActSection 129(1) and proviso
The overriding rule covers goods transported or stored in transit contrary to the Act or rules, their conveyance and related documents. The order-service proviso bars detention or seizure without serving the transporter with the order.
Questions to answer on the file7 questions
129(1)(a)Owner comes forward
on payment of penalty equal to two hundred per cent. of the tax payable on such goodsSection 129(1)(a)
Exempted goods instead use two per cent. of value or twenty-five thousand rupees, whichever is less. The law does not settle when or how the owner must come forward.
Questions to answer on the file10 questions
129(1)(b)Owner does not come forward
on payment of penalty equal to fifty per cent. of the value of the goods or two hundred per cent. of the tax payable on such goods, whichever is higherSection 129(1)(b)
Exempted goods instead use five per cent. of value or twenty-five thousand rupees, whichever is less. The law does not settle "exempted goods" or the basis for fixing goods value under these clauses.
129(1)(c)Equivalent security
upon furnishing a security equivalent to the amount payable under clause (a) or clause (b)Section 129(1)(c)
Security provides the stated alternative release route. Its amount follows the applicable owner-based clause, with prescribed form and manner.
Questions to answer on the file4 questions
129(3)Notice and order timetable
shall issue a notice within seven days of such detention or seizureSection 129(3)
The officer then orders the clause (a) or (b) penalty within seven days of notice service. The law does not settle the consequence of missing either period.
Questions to answer on the file10 questions
129(4)Hearing
No penalty shall be determined under sub-section (3) without giving the person concerned an opportunity of being heard.Section 129(4)
The opportunity precedes determination. It qualifies the notice-and-order process in sub-section (3).
Questions to answer on the file3 questions
129(5)Conclusion on payment
all proceedings in respect of the notice specified in sub-section (3) shall be deemed to be concluded.Section 129(5)
The stated sub-section (1) amount must be paid. The law does not settle whether that amount means the clause calculation or the amount specified in the order.
Questions to answer on the file1 question
129(6) and provisosNon-payment and disposal
within fifteen days from the date of receipt of the copy of the order passed under sub-section (3)Section 129(6) and provisos
Non-payment exposes goods or conveyance to sale or other prescribed disposal to recover penalty. The transporter may secure conveyance release by paying the penalty or one lakh rupees, whichever is less. The officer may reduce the period for perishable, hazardous or depreciating goods.
Questions to answer on the fileFailure to pay within the period allowed, and the sale of the goods9 questions
Questions to answer on the fileThe release of the conveyance on payment by the transporter3 questions
Other questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
Scope the section as a whole
Questions to answer on the file2 questions
Frequently asked questions
Can equivalent security support release?
Yes. Clause (c) permits security equivalent to the amount under clause (a) or (b), in prescribed form and manner.
Section 129(1)(c)
Is a hearing required before the penalty order?
Yes. Sub-section (4) requires an opportunity before determination under sub-section (3).
Section 129(4)
Can the fifteen-day non-payment period be shortened?
Yes. The officer may reduce it for perishable, hazardous or depreciating goods under the second proviso.
Section 129(6), second proviso
Amendment history
The CBIC text carries 6 footnotes. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]
| Note | Change | Instrument | Effective from |
|---|---|---|---|
| Enforced the section | — | 1st July, 2017 | |
| 1 | Substituted clauses (a) and (b) of sub-section (1). The source preserves the clauses replaced. | s. 117(i) of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021 | 1st January, 2022 |
| 2 | Omitted sub-section (2), shown as 2[]. The source preserves the sub-section omitted. | s. 117(ii) of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021 | 1st January, 2022 |
| 3 | Substituted sub-section (3). The source preserves the sub-section replaced. | s. 117(iii) of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021 | 1st January, 2022 |
| 4 | Substituted the opening words of sub-section (4) for "No tax, interest or penalty." | s. 117(iv) of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021 | 1st January, 2022 |
| 5 | Substituted sub-section (6) and its provisos. The source preserves the sub-section replaced, whose own proviso spoke of "the said period of seven days" where the sub-section it qualified spoke of fourteen days. | s. 117(v) of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021 | 1st January, 2022 |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 2 | 129(1)(c) defined by Section 2 clause (87) | 129(1)(c) "as may be prescribed" |
| Section 2 | 129(3) defined by Section 2 clause (91) | 129(3) "The proper officer detaining or seizing goods or conveyance" |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Circulars (6)
| Number | Date | Subject |
|---|---|---|
| Circular No. 224/18/2024-GST | 11 July 2024 | Guidelines for recovery of outstanding dues, in cases wherein first appeal has been disposed of, till Appellate Tribunal comes into operation. |
| Circular No. 88/07/2019-GST | 1 February 2019 | Seeks to make amendments in the earlier issued circulars in wake of amendments in the CGST Act, 2017 (which shall come into force w.e.f. 01.02.2019). |
| Circular No. 76/50/2018-GST | 31 December 2018 | Clarification on certain issues (sale by government departments to unregistered person; leviability of penalty under section 73(11) of the CGST Act; rate of tax in case of debit notes / credit notes issued under section 142(2) of the CGST Act; applicability of notification No. 50/2018-Central Tax; valuation methodology in case of TCS under Income Tax Act and definition of owner of goods) related to GST |
| Circular No. 64/38/2018-GST | 14 September 2018 | Modification of the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular Nos. 41/15/2018-GST dated 13.04.2018 and 49/23/2018-GST dated 21.06.2018 - regarding |
| Circular No. 41/15/2018-GST | 13 April 2018 | clarifying the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances. |
| Circular No. 3/03/2017-GST | 5 July 2017 | Proper officer relating to provisions other than Registration and Composition under the Central Goods and Services Tax Act, 2017-Reg. |
Notifications (6)
| Number | Date | Subject |
|---|---|---|
| Notification No. 20/2024-Central Tax | 8 October 2024 | Seeks to make amendments (Second Amendment 2024) to the CGST Rules, 2017 |
| Notification No. 12/2024-Central Tax | 10 July 2024 | Seeks to make amendments (Amendment, 2024) to the CGST Rules, 2017. |
| Notification No. 40/2021-Central Tax | 29 December 2021 | Seeks to make amendments (Tenth Amendment, 2021) to the CGST Rules, 2017. |
| Notification No. 16/2019-Central Tax | 29 March 2019 | Seeks to make Second Amendment (2019) to CGST Rules. |
| Notification No. 28/2018-Central Tax | 19 June 2018 | Notification issued for amending the CGST Rules, 2017 |
| Notification No. 10/2017-Central Tax | 28 June 2017 | Seeks to amend CGST Rules notification no 3/2017-Central Tax dt 19.06.2017 amended by a later instrument |
Unsettled questions
The words of section 129 do not answer these questions. Where one decides a matter on the file, the answer depends on the position taken on it.
- By what time, and in what manner, must the owner of the goods come forward for payment of such penalty, clauses (a) and (b) turning the penalty from two hundred per cent. of the tax payable into fifty per cent. of the value of the goods on the answer and fixing neither a period nor a form?
- What makes goods "exempted goods" for clauses (a) and (b) of sub-section (1), the Act defining exempt supply in clause (47) of section 2 and nowhere defining exempted goods?
- On what basis is "the value of the goods" fixed for clauses (a) and (b), sub-section (1) naming no valuation provision and section 15 valuing a supply rather than goods detained in transit?
- What follows where the notice is issued later than seven days after the detention or seizure, or the order is passed later than seven days from the service of the notice, sub-section (3) fixing both periods and attaching no consequence to either?
- Which amount is the "amount referred in sub-section (1)" whose payment concludes the proceedings under sub-section (5): the amount that clause (a) or clause (b) yields, or the amount the order passed under sub-section (3) specifies?
See also
- Section 68 of the CGST Act, 2017: inspection of goods in movement
- Section 67 of the CGST Act, 2017: power of inspection, search and seizure
- Section 122 of the CGST Act, 2017: penalty for certain offences
- Section 126 of the CGST Act, 2017: general disciplines related to penalty
- Section 130 of the CGST Act, 2017: confiscation of goods or conveyances and levy of penalty
References
- Central Board of Indirect Taxes and Customs. "Section 129. Detention, seizure and release of goods and conveyances in transit". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 6. Retrieved 17 September 2026.
External links
- CGST Act, 2017, Section 129 on the CBIC tax information portal