Section 68 – Inspection of Goods in Movement
Section 68 of CGST Act, 2017 – Inspection of Goods in Movement
Updated on: February 2026 (as applicable till date)
Prepared by: Yours Tax Consultant
1. Objective of Section 68
Section 68 empowers GST authorities to intercept and inspect goods in movement to ensure that transportation of goods is supported by valid documents and is not intended to evade tax.
This section forms the backbone of e-way bill enforcement.
2. Statutory Provision – Section 68
Section 68(1):
The Government may require the person in charge of a conveyance
carrying any consignment of goods
of value exceeding such amount as may be specified
to carry with him:
- Such documents, and
- Such devices
as may be prescribed.
Section 68(2):
The details of documents required under sub-section (1)
shall be validated
in such manner as may be prescribed.
Section 68(3):
Where any conveyance is intercepted,
the proper officer may require the person in charge
to produce the prescribed documents and devices
for verification
and may inspect the goods.
3. Documents Required During Movement of Goods
The person in charge of conveyance must carry:
- Tax invoice / bill of supply / delivery challan
- E-way bill (physical or electronic)
Relevant Rules:
4. Who is “Person in Charge of Conveyance”?
This includes:
- Driver
- Transporter
- Owner of vehicle
Responsibility is strict during transit.
5. Inspection Procedure
Inspection under Section 68 includes:
- Stopping the vehicle
- Verification of documents
- Physical inspection of goods (if required)
Inspection reports are prepared in:
- FORM GST MOV-01 – Statement of driver
- FORM GST MOV-02 – Order for inspection
6. Time Limits for Inspection
As per Rule 138B:
- Physical inspection once per conveyance
- Inspection report to be uploaded within:
- 24 hours (Part A of MOV-04)
- 3 days (Part B of MOV-04)
7. Consequences of Non-Compliance
If goods are found without proper documents:
- Detention or seizure under Section 129
- Confiscation under Section 130 (in serious cases)
Section 68 acts as the trigger provision.
8. Section 68 vs Section 67
- Section 68: Inspection during movement of goods
- Section 67: Search and seizure at premises
Both operate in different fields.
9. Judicial Safeguards
Courts have held that:
- Minor clerical errors cannot justify detention
- Vehicle cannot be detained for technical lapses
- Inspection must be reasonable and time-bound
Mechanical detention orders are illegal.
10. Practical Compliance Tips
- Ensure correct e-way bill validity
- Match invoice and e-way bill details
- Avoid under-valuation or wrong HSN
- Train drivers on document handling
11. Related Provisions
12. Professional Insight
Section 68 is about compliance on the road. Most disputes arise due to documentation gaps, not tax evasion. Strong systems and trained transporters are the best defence.
Disclaimer: This article is prepared based on the CGST Act, CGST Rules, notifications and prevailing legal position as applicable till date. Inspection powers must be exercised reasonably and within legal limits.
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