MOV-07 is issued under Section 129(3), CGST Act. This guide explains the legal basis, common grounds, procedural steps, and how GST Notice AI drafts your reply in under 60 seconds with relevant citations and defences.
Form GST MOV-07 is a notice issued under Section 129(3) of the CGST Act after a conveyance and goods in transit have been detained under Section 129(1) for contravention of the provisions of the Act or rules (typically e-way bill or invoice discrepancies). The notice specifies the tax and penalty payable to secure release and calls upon the person in charge to show cause within 7 days.
Legal Section
Section 129(3), CGST Act
Response Window
7 Days from Service
Reply Deadline
7 Days for Reply
Risk Level
Very High — Goods & Vehicle Detained
Order
Form MOV-09
Issuing Authority
Proper Officer (Inspection / E-Way Bill)
E-Way Bill Missing or Expired
Goods transported without a valid e-way bill, or with an e-way bill whose validity expired before the goods reached the destination — Rule 138.
Mismatch Between Invoice and Goods
Quantity, description, HSN, or value discrepancy between the invoice accompanying the consignment and the physical goods inspected.
Wrong Vehicle or Transporter Details
Vehicle number on the e-way bill does not match the actual conveyance; transporter ID is incorrect or not updated.
Under-Valuation / Mis-Declaration
The declared transaction value appears understated based on prevailing market rates for similar goods; HSN wrongly declared to attract lower rate.
Transportation Without Documents
Section 68 read with Rule 138A — goods moved without the invoice / bill of supply / delivery challan required during movement.
Reach the detention site urgently. Collect copies of MOV-01 (statement of driver), MOV-02 (detention order), MOV-04 (physical verification report), and MOV-07 itself. Note the detaining officer's name and designation.
Verify the ground of detention. If procedural (e-way bill typo, vehicle number update delay), document the true facts with bank, invoice, and e-way bill print.
Decide the release route — (a) Pay tax + 200% penalty under Section 129(1)(a) if owner owns up, (b) Pay tax + 50% of value under Section 129(1)(b) if owner does not own up, or (c) Furnish bond with security equal to the amount under Section 129(1)(c).
Pay through DRC-03 / portal challan and upload proof. The Proper Officer then issues Form MOV-05 (release order) and the goods/vehicle are released.
File a detailed reply to MOV-07 within 7 days if contesting — cite Circular 76/2018-GST on typographical errors, relevant precedents (e.g. Satyam Shivam Papers, Guwahati HC) on genuine errors, and request waiver.
After adjudication, Form MOV-09 is issued. If demand is confirmed, appeal lies under Section 107 via APL-01 with 25% pre-deposit (higher than normal 10% under Section 107(6)).
Detention Paperwork Audit
Lists every mandatory form (MOV-01 to MOV-11) and flags any missing or defective paperwork that can ground a challenge to the detention itself.
Penalty vs Security Calculator
Computes the three release options under Section 129(1)(a)/(b)/(c) and recommends the cheapest based on owner disclosure and appeal prospects.
Precedent Matcher
Identifies applicable High Court rulings (Satyam Shivam, Vardan Associates, Daily Express, etc.) on typographical errors, expired e-way bills, and minor discrepancies — ready to cite in reply.
Upload your MOV-07 notice. AI drafts the reply, computes deadlines, and cites every applicable section and rule.
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