Rule 138C - Inspection and verification of goods
CGST Rules, 2017
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Finin2min Summary - Rule in 2 Minutes
EWB-03 Part A summary within 24 hours and Part B final report generally within three days, extendable as prescribed; repeat physical verification restricted unless new information.
Exact operative text
138C. Inspection and verification of goods.- (1) A summary report of every inspection of goods in transit shall
be recorded online by the proper officer in Part A of FORM GST EWB-03 within twenty four hours of
inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such
inspection. Provided that where the circumstances so warrant, the Commissioner, or any other officer
authorised by him, may, on sufficient cause being shown, extend the time for recording of the final report in
Part B of FORM EWB-03, for a further period not exceeding three days. Explanation.- The period of twenty
four hours or, as the case may be, three days shall be counted from the midnight of the date on which the
vehicle was intercepted.312 (2) Where the physical verification of goods being transported on any
conveyance has been done during transit at one place within the State or Union territory or in any other
State or Union territory, no further physical verification of the said conveyance shall be carried out again in
the State or Union territory, unless a specific information relating to evasion of tax is made available
subsequently. 312 Inserted vide Notf no. 28/2018- CT dt. 19.06.2018
Paragraph-wise decode
EWB-03 Part A summary within 24 hours and Part B final report generally within three days, extendable as prescribed; repeat physical verification restricted unless new information.
Section-Rule-Form-Notification bridge
No direct Rule certified in Phase 1. Check notifications, circulars, forms and corresponding State law.
The mapping is a legal concordance, not a round-robin related-link list. It is limited to instruments certified in this phase.
Practical example
Apply the rule to the relevant form, period, portal event and evidence trail before reaching a compliance conclusion.
Professional alert
Verify the latest official active Rule page, amending Gazette and portal version before filing or advising.
Implementation checklist
- Fix the transaction, taxable period and jurisdiction.
- Read every subsection, proviso, explanation and omission marker.
- Open the mapped Rule, form, notification and circular.
- Test State/UT variation and portal version.
- Preserve evidence, approvals, working papers and acknowledgements.
- Record the conclusion, assumptions, source date and reviewer.
Evidence and retention checklist
- Contract, purchase order, invoice or underlying transaction document.
- Registration, return, ledger, challan and portal acknowledgement.
- Official Act/Rule/notification version used and effective date.
- Internal tax position paper, computation and management approval.
- Correspondence, notices, replies, orders and appeal papers where applicable.
Practical Q&A
- What does rule 138C regulate?
- It regulates inspection and verification of goods. Read the exact text, conditions, exceptions and transaction date together.
- Which subordinate law should be checked?
- No direct CGST Rule has been certified in this phase. Notifications, circulars, forms and the corresponding SGST/UTGST layer may also apply.
- What evidence should be retained?
- Preserve the contract or transaction record, invoice or form, portal acknowledgement, payment/ledger evidence, correspondence, legal working and the official source version used.
- Can portal behaviour override the statute?
- No. Portal functionality is operational evidence; legal entitlement and liability remain controlled by the Act, Rules, notifications and binding decisions.