The GST Council has recommended tighter conditions for intercepting goods in transit, limiting when officers can inspect, detain or seize a conveyance, and removing confiscation under section 130 for goods or conveyances in transit. These are proposals from the Council’s 57th meeting on 8 October 2026—not confirmed changes to law. They take effect only through the relevant legal instruments.
What the GST Council recommended
At its 57th meeting in New Delhi on 8 October 2026, the Council recommended amendments to sections 68, 129 and 130 of the Central Goods and Services Tax (CGST) Act. The proposed framework would distinguish between a State connected to the supplier or recipient and a State through which goods are merely passing.
- Interception: A conveyance carrying goods could be intercepted only on specific intelligence and with authorisation from an officer not below the rank of Joint Commissioner.
- Inspection, detention or seizure: These actions could be taken where either the supplier or the recipient is located or registered in the State where the interception occurs. The recommendation says there would be no interception in transit States.
- Missing documents: An exception would apply if no e-way bill had been generated or the conveyance carried no document showing the goods’ origin or destination. In either case, inspection, detention or seizure could occur irrespective of jurisdiction.
- Confiscation: The Council recommended that section 130 confiscation provisions should not apply to goods or conveyances in transit.
The Ministry of Finance’s 8 October 2026 release says the proposals are intended to enable smoother movement of goods and conveyances and improve business supplies and transportation efficiency. That is the government’s stated rationale, not a measured result.
How the proposal would apply to a stopped vehicle
The recommended approach turns on both the location of the stop and the documents available. A stop in a transit State would be treated differently from one in a State where the supplier or recipient is located or registered. The missing-document exception would allow action regardless of that jurisdictional distinction.
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| Situation described in the recommendation | Proposed treatment |
|---|---|
| Specific intelligence and authorisation by an officer at least at Joint Commissioner rank | Required for interception. |
| Supplier or recipient located or registered in the State where interception occurs | Inspection, detention or seizure could be taken. |
| Stop in a transit State, with an e-way bill and a document showing origin or destination | The Council’s recommendation says there would be no interception in transit States. |
| No e-way bill, or no document showing origin or destination | Inspection, detention or seizure could occur irrespective of jurisdiction. |
| Goods or conveyance in transit | Section 130 confiscation provisions would not apply under the proposal. |
The recommendation describes different thresholds for interception, inspection, detention or seizure, and confiscation. It should not be read as a blanket rule that officers could never stop a vehicle or take action: the stated intelligence, authorisation, jurisdiction and document conditions matter.
Are the recommended changes already in force?
The announcement is a Council recommendation, not confirmation that the CGST Act has already been amended. The PIB release says recommendations are given effect through relevant circulars, notifications or amendments to law, and that those instruments alone have the force of law. Until the applicable instrument is issued and takes effect, treat these measures as proposed rather than operative.
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Businesses should distinguish a legal change from a portal or system update. The official e-way-bill portal publishes operational announcements. Its announcements page, updated 30 July 2026, reported that recent EWB Closure and mandatory Ship-to GSTIN changes had been put on hold, alongside earlier dated validations. That notice predates the Council’s 8 October recommendations and concerns portal functionality; it does not implement or cancel the proposed statutory changes.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What businesses and transporters can do now
Until the relevant legal instruments take effect, continue to follow the applicable rules and instructions rather than relying on the recommendation as a new exemption. As a practical precaution, keep the applicable e-way bill and documents showing the goods’ origin and destination available during transit. Check official notifications and circulars for the legal position, and the e-way-bill portal for operational notices.
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