E-Way Bill Interception explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
If an officer stops your vehicle, the law gives him a fixed sequence of forms and deadlines. Knowing that sequence is the quickest way to tell a lawful inspection from an overreach, and to decide when to pay, when to furnish security and when to fight later. Our GST notices and litigation team handles detention matters.
Under section 68 and Rules 138B and 138C, an authorised officer may intercept a conveyance and check documents and the e-way bill. If the papers are in order, the vehicle moves on. If documents are missing or he wants to inspect, he records a statement in MOV-01 and orders inspection in MOV-02, files an EWB-03 summary within 24 hours, and must finish within 3 days (extendable by 3 more with MOV-03). The result is either a release order (MOV-05) or detention under section 129 (MOV-06 and MOV-07).
Who can stop the vehicle, and what must be carried
Section 68 requires the person in charge of a conveyance carrying goods above the prescribed value to carry the invoice, bill of supply or delivery challan (or bill of entry for imports) and the e-way bill in physical or electronic form. An e-way bill is needed where the consignment value exceeds Rs. 50,000, and States may set different limits for movement within the State. Where the invoice is an e-invoice, the QR code carrying the IRN may be shown electronically in place of a paper copy.
The jurisdictional Commissioner designates the officers who may intercept. Where the e-way bill can be verified electronically, the officer is expected to do so on the portal, the mobile app or by SMS. If no discrepancy appears on a prima facie check, the conveyance is allowed to move. Physical verification of a conveyance is done by the officer authorised for it. Any other officer can verify a specific vehicle only on specific information of tax evasion and with the approval of the Commissioner or his authorised officer.
The forms, step by step
| Step | Form | What it does | Clock |
|---|---|---|---|
| 1 | MOV-01 | Statement of the person in charge, recorded if documents are not produced or the officer intends to inspect | At interception |
| 2 | MOV-02 | Order for physical verification; vehicle to be stationed at the named place | Starts the clocks |
| 3 | EWB-03 Part A | Summary report uploaded on the portal | Within 24 hours of MOV-02 |
| 4 | MOV-03 | Written permission from the Commissioner (or authorised officer) to extend inspection | Extends by 3 more days |
| 5 | MOV-04 | Report of the physical verification, copy served on the person in charge | On completion |
| 6 | EWB-03 Part B | Final report on the portal | Within 3 days of the verification |
| 7a | MOV-05 | Release order where no discrepancy is found | Forthwith |
| 7b | MOV-06 and MOV-07 | Detention order and notice under section 129(3) specifying penalty | If detention is warranted |
The inspection must be concluded within 3 days of the MOV-02 order. The 24-hour and 3-day periods are counted from the midnight of the date on which the vehicle was intercepted. Once goods have been physically verified at one place in a State or Union territory, or in any other State, no further physical verification of that conveyance may be done unless specific information of tax evasion surfaces later. Keep the MOV documents: hard copies of the forms serve as proof of the earlier check when another authority stops the same vehicle.
Detention is limited to the defective consignments
The Background Material records a clarification that only the goods or conveyance for which a violation is established can be detained or confiscated. Its illustration: a vehicle carries 25 consignments, valid e-way bills exist for 20, and none for 5. Detention can be made only for the 5 consignments and the conveyance in respect of which the violation is proved.
Also, since 8 November 2019 no inspection notice or order is valid without a computer-generated Document Identification Number quoted in its body. Check for the DIN before you reply.
What section 129 asks you to pay
Where the e-way bill or invoice is missing, incomplete, incorrect or patently erroneous, the statutory route is detention, then release on payment of penalty. The amounts in section 129(1) are:
| Goods | Owner comes forward | Owner does not come forward |
|---|---|---|
| Taxable | Penalty of 200% of tax payable | Higher of 50% of value or 200% of tax |
| Exempted | Lower of 2% of value or Rs. 25,000 | Lower of 5% of value or Rs. 25,000 |
Illustration: taxable goods worth Rs. 1,00,000 carrying 12% tax (the rate used in the Background Material's own example). Tax is Rs. 12,000. If the owner comes forward, penalty is 200% of tax, which is Rs. 24,000. If he does not, the higher of Rs. 50,000 (50% of value) and Rs. 24,000 applies, so Rs. 50,000. For exempt goods worth Rs. 1,00,000, the owner-comes-forward figure is the lower of Rs. 2,000 and Rs. 25,000, so Rs. 2,000.
One point where the commentary and the Act differ: the commentary describes the Rs. 25,000 figure for exempt goods as a minimum in one place. The statutory text says "whichever is less" in both limbs, so it is a cap. Follow the Act.
Security equal to the amount payable also secures release (section 129(1)(c)). The officer must serve a notice within 7 days of detention and pass an order within 7 days of service of that notice, after hearing you. If you pay the section 129(1) amount within 7 days of the notice and before the order, you intimate it in DRC-03 and the officer concludes the matter with DRC-05 (Rule 142(3)). If the penalty is not paid within 15 days of receiving the order, the goods or conveyance can be sold; the conveyance is released on the transporter paying the lower of the penalty or Rs. 1 lakh.
Payment under section 129(5) concludes the proceedings, so pay under protest in writing and then appeal. An order that demands only penalty now needs a pre-deposit of 10% of the penalty for appeal (see appeal against a penalty-only order). The Karnataka High Court in Rajeev Traders observed that an officer detaining goods cannot convert detention into confiscation, and that any tax evaded by undervaluation must be pursued under section 73 or 74.
Need help with an intercepted consignment?
If a vehicle has been detained or you have received MOV-06 and MOV-07, our team can review the forms, the timelines and your documents and prepare the reply or appeal under GST notices and litigation. For routine movement, having your e-way bill registration and Part B updates right removes most of the risk.
Key takeaways
- Interception starts with a document check; MOV-01 and MOV-02 follow only if papers are missing or inspection is intended.
- EWB-03 summary within 24 hours, inspection within 3 days, one extension of 3 days by MOV-03.
- Only defective consignments may be detained; repeat verification needs specific evasion information.
- Section 129 penalty is 200% of tax (owner comes forward) or the higher of 50% of value and 200% of tax (owner does not).
- Demand a DIN on every notice, and keep all MOV copies.
Read next
- Section 68: Interception of Goods in Transit
- Section 129: Detention, Penalty and Release
- Appeal Against a Penalty-Only Order: Pre-Deposit
- Compounding of GST Offences: Section 138 and Rule 162
Disclaimer: Positions stated as on 30 September 2026, based on the CGST and IGST Acts and Rules as amended, the Finance Act 2026, and the ICAI Background Material on GST (14th Edition, July 2026). Verify current notifications before acting.