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 130, verbatim (show)
* Section 130. Confiscation of goods or conveyances and levy of penalty.-
(1) 1[Where] any person-
(i) supplies or receives any goods in contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (ii) does not account for any goods on which he is liable to pay tax under this Act; or (iii) supplies any goods liable to tax under this Act without having applied for registration; or (iv) contravenes any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (v) uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of this Act or the rules made thereunder unless the owner of the conveyance proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any, and the person in charge of the conveyance, then, all such goods or conveyances shall be liable to confiscation and the person shall be liable to penalty under section 122.
(2) Whenever confiscation of any goods or conveyance is authorised by this Act, the officer adjudging it shall give to the owner of the goods an option to pay in lieu of confiscation, such fine as the said officer thinks fit:
Provided that such fine leviable shall not exceed the market value of the goods confiscated, less the tax chargeable thereon:
Provided further that the aggregate of such fine and penalty leviable shall not be less than the 2[penalty equal to hundred per cent. of the tax payable on such goods]
Provided also that where any such conveyance is used for the carriage of the goods or passengers for hire, the owner of the conveyance shall be given an option to pay in lieu of the confiscation of the conveyance a fine equal to the tax payable on the goods being transported thereon. 3[****]
(4) No order for confiscation of goods or conveyance or for imposition of penalty shall be issued without giving the person an opportunity of being heard.
(5) Where any goods or conveyance are confiscated under this Act, the title of such goods or conveyance shall thereupon vest in the Government.
(6) The proper officer adjudging confiscation shall take and hold possession of the things confiscated and every officer of Police, on the requisition of such proper officer, shall assist him in taking and holding such possession.
(7) The proper officer may, after satisfying himself that the confiscated goods or conveyance are not required in any other proceedings under this Act and after giving reasonable time not exceeding three months to pay fine in lieu of confiscation, dispose of such goods or conveyance and deposit the sale proceeds thereof with the Government.
* 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. 118(a) of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021 for "Notwithstanding anything contained in this Act, if".
2. Substituted (w.e.f. 1st January, 2022 vide Notification No. 39/2021-C.T., dated 21st December, 2021) by s. 118(b) of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021 for "amount of penalty leviable under sub-section (1) of section 129".
3. Omitted (w.e.f. 1st January, 2022 vide Notification No. 39/2021-C.T., dated 21st December, 2021) by s. 118(c) of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021 for "(3) Where any fine in lieu of confiscation of goods or conveyance is imposed under sub-section (2), the owner of such goods or conveyance or the person referred to in sub-section (1), shall, in addition, be liable to any tax, penalty and charges payable in respect of such goods or conveyance."
130(1)(i) to (v)Confiscation grounds
all such goods or conveyances shall be liable to confiscation and the person shall be liable to penalty under section 122.Section 130(1)(i) to (v)
The grounds cover evasion-intended supply or receipt or other contravention, unaccounted taxable goods, taxable supply without applying for registration and the stated transport contravention. For the conveyance limb, the owner may prove absence of knowledge or connivance by the owner, agent and person in charge. The respective intent and proof conditions attach to their stated limbs.
Questions to answer on the file10 questions
130(2) and provisosFine option and limits
the officer adjudging it shall give to the owner of the goods an option to pay in lieu of confiscation, such fine as the said officer thinks fitSection 130(2) and provisos
Fine cannot exceed goods market value less tax, while aggregate fine and penalty must reach hundred per cent. of tax. Hire conveyances have the separate option of a fine equal to the goods tax. The law does not settle which limit governs where the stated floor and ceiling cannot be reconciled.
Questions to answer on the fileThe option to pay a fine in lieu of confiscation3 questions
Questions to answer on the fileThe limit on the fine3 questions
Questions to answer on the fileThe least amount of the aggregate of the fine and the penalty4 questions
Questions to answer on the fileThe fine in lieu of the confiscation of a conveyance used for hire1 question
130(4)Hearing
No order for confiscation of goods or conveyance or for imposition of penalty shall be issued without giving the person an opportunity of being heard.Section 130(4)
The protection applies before either confiscation or penalty order. The law does not settle the required notice, time or personal-hearing content of that opportunity.
Questions to answer on the file2 questions
130(5)Government title
the title of such goods or conveyance shall thereupon vest in the Government.Section 130(5)
Confiscation under the Act triggers vesting. The title consequence is separate from possession under sub-section (6).
Questions to answer on the file1 question
130(6)Possession and police assistance
shall take and hold possession of the things confiscatedSection 130(6)
The adjudging officer takes and holds the items. Police officers must assist on that officer's requisition.
Questions to answer on the file4 questions
130(7)Disposal
after giving reasonable time not exceeding three months to pay fine in lieu of confiscationSection 130(7)
The officer must first be satisfied the items are unnecessary for other Act proceedings. Disposal follows the stated payment opportunity, and sale proceeds go to the Government.
Questions to answer on the file6 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
The penalty under section 122 that sub-section (1) attracts 130(1) closing words
Questions to answer on the file1 question
Frequently asked questions
Can confiscation proceed without a hearing?
No. Sub-section (4) requires an opportunity before confiscation or penalty order. The law does not settle its precise hearing requirements.
Section 130(4)
Does the owner have an alternative to confiscation?
Sub-section (2) requires the stated fine option, subject to its ceiling, aggregate floor and hire-conveyance proviso.
Section 130(2)
When may confiscated items be disposed of?
The officer must be satisfied they are unnecessary for other proceedings and give reasonable fine-payment time not exceeding three months. Proceeds are deposited with Government.
Section 130(7)
Amendment history
The CBIC text carries 4 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 "Where" in the opening words of sub-section (1) for the words "Notwithstanding anything contained in this Act, if", which the footnote preserves | s. 118(a) of The Finance Act, 2021 (No. 13 of 2021) | 1st January, 2022 |
| 2 | Substituted the measure in the second proviso to sub-section (2) for the words "amount of penalty leviable under sub-section (1) of section 129", which the footnote preserves | s. 118(b) of The Finance Act, 2021 (No. 13 of 2021) | 1st January, 2022 |
| 3 | Omitted sub-section (3), whose words the footnote preserves in full | s. 118(c) of The Finance Act, 2021 (No. 13 of 2021) | 1st January, 2022 |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 122 | 130(1) requires Section 122 | 130(1) "the person shall be liable to penalty under section 122" |
| Section 25 | 130(1)(iii) requires Section 25 | 130(1)(iii) "supplies any goods liable to tax under this Act without having applied for registration" |
| Section 67 | Section 67 requires this provision | section 67(2) "any goods liable to confiscation"; the section 67 record already carries this edge, and the goods it reaches are the goods this section makes liable |
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 (5)
| 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. 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 (4)
| Number | Date | Subject |
|---|---|---|
| Notification No. 12/2024-Central Tax | 10 July 2024 | Seeks to make amendments (Amendment, 2024) 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 130 do not answer these questions. Where one decides a matter on the file, the answer depends on the position taken on it.
- What does an opportunity of being heard require before an order adverse to the person is issued: whether a notice alone suffices, what time must be allowed, and whether a personal hearing must be offered?
- Where the least amount the second proviso sets for the aggregate of the fine and the penalty exceeds the highest fine the first proviso allows, which of the two limits governs the fine? The first proviso caps the fine at the market value of the goods confiscated less the tax chargeable thereon; the second requires the aggregate of the fine and the penalty leviable to be not less than hundred per cent. of the tax payable on such goods; and sub-section (2) reconciles them nowhere.
See also
- Section 122 of the CGST Act, 2017: penalty for certain offences
- Section 129 of the CGST Act, 2017: detention, seizure and release of goods and conveyances in transit
- Section 67 of the CGST Act, 2017: power of inspection, search and seizure
References
- Central Board of Indirect Taxes and Customs. "Section 130. Confiscation of goods or conveyances and levy of penalty". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 4. Retrieved 17 September 2026.
External links
- CGST Act, 2017, Section 130 on the CBIC tax information portal