Indirect Tax Laws · Charge of GST

Inspection of Goods in Movement under Section 68 CGST

Updated 5 October 2026 · Fact-checked

Inspection of goods in movement means the person in charge of a conveyance carrying goods must carry the prescribed documents, including the e-way bill where required, and produce them when a proper officer intercepts the vehicle. To solve a question, check whether an e-way bill is required (by value or by the type of movement), the documents, who is in charge, and whether the officer followed procedure.

Understand Inspection of Goods in Movement

Goods move before the tax return is filed. So the law needs a check at the point of movement. Section 68 provides that check. It puts a duty on the person in charge of the conveyance and gives a power to the proper officer.

The duty: when goods are transported and the consignment value exceeds the prescribed amount, the person in charge must carry the prescribed documents and devices. Usually these are the tax invoice (or bill of supply, or delivery challan where the goods move without a supply invoice) and the e-way bill or its number. The driver, not the supplier, is the person who must show them on the road.

The ₹50,000 figure is the usual threshold for generating an e-way bill under Rule 138 of the CGST Rules. It is not the only trigger. Some inter-State movements need an e-way bill whatever the value, subject to the conditions in Rule 138. Examples are inter-State movement of goods for job work by a registered person, and inter-State supply of handicraft goods by a person exempt from registration under clauses (i) and (ii) of section 24. Check the facts for these before you rely on the value test.

The power: the proper officer can intercept the conveyance and ask for the documents. He checks them against the goods. The e-way bill rules limit how this is done. Documents can be verified on interception. Physical verification of goods needs the specific authorisation of the Commissioner or an officer authorised by him. The officer must record the result in the prescribed form and within the prescribed time.

If the documents are missing or wrong, the consequences come under the detention, seizure and penalty provisions. Section 68 sets the duty and the check. The penalty is a separate topic, but exam questions often join the two. Always state the duty first and then the consequence.

Think of it as three questions. Was a document required? Did the person in charge carry it? Did the officer act within the procedure?

Key rules to remember

Duty under section 68: Consignment value > prescribed amount ⇒ person in charge of conveyance must carry prescribed documents and devices; The usual threshold for an e-way bill is ₹50,000 consignment value under Rule 138 of the CGST Rules. Irrespective of value, an e-way bill is required (with the Rule 138 conditions) for inter-State movement of goods for job work by a registered person, and for inter-State supply of handicraft goods by a person exempt from registration under clauses (i) and (ii) of section 24. Do not apply this to handicraft goods in general. Check whether the question gives a state-specific or goods-specific relaxation.
Value of consignment for the threshold: Value = value under section 15 declared in the invoice, bill of supply or delivery challan + CGST + SGST/UTGST + IGST + cess charged in that document. Value of exempt supplies and tax payable under reverse charge are not included.; This is the consignment value as explained in Rule 138 of the CGST Rules. Tax charged in the document is included. A ₹45,000 taxable value at 18% gives ₹53,100, which crosses ₹50,000. Exempt goods are left out only where one invoice covers both exempt and taxable goods. Tax payable under reverse charge is not charged in the supplier's invoice, so there is nothing to add for it and nothing to subtract from the invoice figure.
Documents to be carried: Invoice or bill of supply or delivery challan + e-way bill (copy, number, or mapped RFID/electronic device as allowed); Delivery challan is used where goods move without an invoice, for example job work or supplies not yet invoiced.
Person responsible: Person in charge of the conveyance; Not the owner of goods. The driver or the transporter's representative must produce the documents.
Officer's power: Intercept conveyance ⇒ verify documents ⇒ physical verification only with specific authorisation; Physical verification of goods needs the specific authorisation of the Commissioner or an officer authorised by him. If further verification is wanted after an earlier one, the officer must record the reasons in writing (Rule 138C of the CGST Rules).
Reporting of verification: Summary report in Part A of FORM GST EWB-03 within 24 hours of inspection; final report in Part B within 3 days of inspection; These are the time limits in Rule 138C of the CGST Rules. Reports are filed in the prescribed form on the e-way bill portal. The Commissioner can extend the 3-day period for Part B for sufficient reasons, up to a further 3 days.
Repeat verification: Once verified in one State ⇒ no further physical verification elsewhere unless specific information of evasion; A standard rule that students forget. Specific information must exist, not a hunch.

How to solve Inspection of Goods in Movement questions

Use this order for any case question on inspection of goods in movement. It keeps your answer in provision, facts, conclusion form.

1Identify the movement. Are goods being transported in a conveyance? Is it a supply, a return, job work, or own use? Is it inter-State?
2Compute the consignment value as per the invoice: the section 15 value plus the GST and cess charged in it. Exempt supplies and tax payable under reverse charge are not part of the value. Compare it with the ₹50,000 threshold. Also check whether the movement needs an e-way bill whatever the value, such as inter-State movement of goods for job work by a registered person, or inter-State supply of handicraft goods by a person exempt from registration under clauses (i) and (ii) of section 24.
3Check for relaxations. Goods or movements exempted from e-way bill requirement need no e-way bill, but other documents may still be needed.
4List the documents required: invoice, bill of supply or delivery challan, and the e-way bill or its number.
5Compare with what the person in charge actually carried. Note any missing, wrong or expired document.
6Check the officer's action. Was it interception and document check (allowed), or physical verification? If physical, was there specific authorisation and no earlier verification (or recorded reasons for further verification)?
7State the consequence. Valid documents mean the vehicle proceeds. Missing or wrong documents expose goods and conveyance to detention and penalty under the relevant provisions.
8Write a one-line conclusion naming who must act and what happens next.

Quickest way: Four-line exam check

When to use it: When a case MCQ or a short note gives limited time and you must decide fast.

Value with tax above ₹50,000, or a movement that needs an e-way bill whatever the value (such as inter-State movement of goods for job work by a registered person, or inter-State supply of handicraft goods by a person exempt from registration under clauses (i) and (ii) of section 24)? If neither, an e-way bill is not mandatory under the standard rule.
Who is in charge of the vehicle? That person must produce documents.
Is the e-way bill or its number plus invoice or challan present?
Did the officer have specific authorisation for physical verification, and was the vehicle already verified in some State?

Common mistakes in Inspection of Goods in Movement

Computing the ₹50,000 threshold on the value before tax, or treating ₹50,000 as the only trigger.
Students use the invoice's taxable value and forget that the consignment value includes the GST and cess charged. They also forget that some inter-State movements need an e-way bill whatever the value.
Fix: Take the invoice value and add CGST, SGST/UTGST, IGST and cess charged. Leave out exempt goods in a mixed invoice. Tax paid under reverse charge is not in the supplier's invoice, so it is not part of the value and nothing is added for it. Then check for movements that need an e-way bill regardless of value, such as inter-State movement of goods for job work by a registered person, or inter-State supply of handicraft goods by a person exempt from registration under clauses (i) and (ii) of section 24.
Saying the supplier must show the documents to the officer on the road.
Students mix up who generates the e-way bill with who carries it.
Fix: Section 68 places the duty on the person in charge of the conveyance. Write that exact phrase.
Thinking the officer can open the consignment at any time.
The word 'inspection' sounds like unlimited power.
Fix: Document checks on interception are routine. Physical verification needs the specific authorisation of the Commissioner or an officer authorised by him.
Forgetting the delivery challan.
Students only remember the invoice and the e-way bill.
Fix: Where goods move without an invoice, as in job work, a delivery challan is the document. Mention it.
Treating section 68 as the penalty section.
Questions on inspection often end in detention, so the two get blended.
Fix: Write duty and power under section 68. Then say consequences follow under the detention and penalty provisions.
Ignoring the bar on repeat physical verification.
It is a small rule in the e-way bill rules and is not in the section.
Fix: If a case says the vehicle was already verified in another State, say no further verification unless specific information of evasion exists.

Worked examples

Example 1

Ravi Traders, Pune, sells goods of taxable value ₹45,000 to a buyer in Nashik. GST is 18%. The goods are loaded on a truck. The driver carries only the tax invoice. A proper officer intercepts the truck. Advise whether the documents are complete.

Show the solution

Provision: when the consignment value exceeds the prescribed amount, the person in charge of the conveyance must carry the invoice and the e-way bill or its number.
Value: the invoice shows ₹45,000 + 18% GST (₹8,100) = ₹53,100. The consignment value includes the tax charged in the invoice.
Compare: ₹53,100 is more than ₹50,000, so an e-way bill is required. No relaxation is stated in the facts.
Check the facts: the driver carries only the invoice. The e-way bill or its number is missing.
Conclusion: the documents are incomplete. The driver cannot satisfy the officer, and the goods and truck are exposed to detention and penalty under the relevant provisions.

Answer: The documents are incomplete. The consignment value is ₹53,100, above ₹50,000, so an e-way bill is also required. Its absence puts the goods and truck at risk of detention.

Example 2

A truck from Gujarat carrying taxable goods to Rajasthan has valid invoice and e-way bill. It is physically verified at the Gujarat border with proper authorisation. In Rajasthan, another officer stops it and wants to open the consignment again. He has no specific information about any evasion. Examine the officer's power.

Show the solution

Provision: the officer may intercept and check the documents. Physical verification needs specific authorisation.
Rule: where a conveyance has been physically verified in one State, it is not verified again in another State unless there is specific information of evasion.
Facts: the vehicle was already verified in Gujarat. The Rajasthan officer has no specific information.
Application: he can ask for and check the invoice and e-way bill. He cannot carry out a second physical verification without specific information.
Conclusion: the second physical verification is not permissible. The truck should be allowed to proceed after the document check.

Answer: The Rajasthan officer may verify the documents but cannot carry out a second physical verification without specific information of evasion. The truck should proceed.

Exam tips

Case MCQs often turn on the threshold. Include the tax charged in the value and leave out exempt goods (in a mixed invoice) before comparing. Also watch for inter-State movement of goods for job work by a registered person, or inter-State supply of handicraft goods by a person exempt from registration under clauses (i) and (ii) of section 24, where value does not matter.
In written answers, use the provision, facts, conclusion layout. Start with the duty of the person in charge of the conveyance.
Pair this topic with e-way bill validity and detention penalty. Questions often blend the three.
Mention the delivery challan whenever goods move without a sale invoice.
Cite Section 68 of the CGST Act and Rules 138 to 138D of the CGST Rules in your answer. The phrase 'person in charge of the conveyance' also earns marks on its own.

Practice questions from Charge of GST

Inspection of Goods in Movement: frequently asked questions

What does section 68 of the CGST Act deal with?

It deals with inspection of goods in movement. The person in charge of a conveyance carrying goods above the prescribed value must carry the prescribed documents and devices. The proper officer can intercept the vehicle and check them.

Which documents must be carried during transport of goods under GST?

The invoice, bill of supply or delivery challan, along with the e-way bill or its number, where an e-way bill is required. The e-way bill may also be linked to an electronic device such as RFID, as the rules allow. The person in charge of the conveyance must produce these on interception.

Is an e-way bill needed only when the consignment value is above ₹50,000?

No. ₹50,000 is the usual threshold, but some movements need an e-way bill whatever the value, subject to the Rule 138 conditions. Examples are inter-State movement of goods for job work by a registered person, and inter-State supply of handicraft goods by a person exempt from registration under clauses (i) and (ii) of section 24. Check the facts of the movement first.

Can an officer physically open the goods during inspection?

Only with the specific authorisation of the Commissioner or an officer authorised by him. Routine interception allows document checks. If further verification is wanted after an earlier one, the officer must record the reasons in writing. A vehicle already physically verified in one State is not verified again elsewhere unless there is specific information of evasion.

What happens if the e-way bill is not carried?

The goods and the conveyance can be detained under the detention and seizure provisions, and a penalty applies before release. Study that penalty in the separate topic on detention and confiscation of goods.