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Under India’s CGST Act, inspection, search, seizure and arrest are distinct powers—not interchangeable names for a single GST action. Inspection concerns access to specified premises; search and seizure require a separate statutory basis involving goods or records believed to be secreted; and arrest under section 69 is tied to specified offences under section 132 and their punishment conditions. The authority, trigger and procedure depend on the power being used.
Which GST power is being used?
The first useful distinction is what, or whom, the action concerns. Sections 67 and 69 of the Central Goods and Services Tax Act, 2017 (CGST Act) set out the main powers discussed here. Other sections address goods in transit, summons and access to business records for specified checks. State and Union Territory GST laws may also be relevant; the CGST Act alone does not settle every question about an enforcement action.
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| Power and provision | Main subject | Broad statutory basis | What it enables |
|---|---|---|---|
| Inspection, section 67(1) | Specified premises of taxable persons, transporters, or warehouse or godown owners or operators | A proper officer not below Joint Commissioner rank has reasons to believe that a listed evasion-related condition exists and gives written authorisation. | Access to inspect the relevant place. Source: Central Goods and Services Tax Act, 2017, section 67. |
| Search and seizure, section 67(2) | A place where relevant goods or records are believed to be secreted | A proper officer not below Joint Commissioner rank has reasons to believe that goods liable to confiscation, or documents, books or things useful or relevant to proceedings, are secreted there. | Search and seizure, personally or through another central tax officer authorised in writing; in specified circumstances, restraint on dealing with goods. Source: Central Goods and Services Tax Act, 2017, section 67. |
| Arrest, section 69 read with section 132 | A person | The Commissioner has reasons to believe that the person committed a specified section 132 offence and the applicable punishment conditions are met, and issues an authorising order. | Arrest by an authorised central tax officer, subject to the offence-specific procedure and applicable law. Source: Central Goods and Services Tax Act, 2017, sections 69 and 132. |
| Transit inspection, section 68 | Goods in movement and associated conveyance documents or devices | The statutory scheme for inspection of goods in movement applies. | Require documents or devices and inspect goods. Source: Central Goods and Services Tax Act, 2017, section 68. |
| Summons, section 70 | A person’s attendance, evidence or documents | A proper officer considers attendance or production necessary for an inquiry. | Summon a person to give evidence or produce documents or things. Source: Central Goods and Services Tax Act, 2017, section 70. |
| Business-premises access, section 71 | Books, records, computers and related material at business premises | A proper officer not below Joint Commissioner rank authorises access for audit, scrutiny, verification or checks specified in the section. | Access for those specified revenue-protection purposes. Source: Central Goods and Services Tax Act, 2017, section 71. |
The table gives the broad distinctions in the Act, not a decision about whether a particular action is valid. In a real event, the documents issued, the facts and the law applicable to the officer and premises matter.
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What inspection under section 67(1) means
Inspection is an access-and-examination power. Under section 67(1), a proper officer not below the rank of Joint Commissioner must have “reasons to believe” that a listed condition exists. These include suppression of a supply transaction or stock, an excess input tax credit claim, or contravention of the Act or rules with intent to evade tax. The provision also addresses specified transporter and warehouse or godown circumstances where goods may have escaped tax or goods or records are kept in a way likely to cause evasion.
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The proper officer may inspect the relevant place or authorise another central tax officer in writing to do so. The CBIC publication GST FAQ, Inspection, Search, Seizure and Arrest describes inspection as “a softer provision than search” that enables officers to access relevant business premises. That is explanatory guidance; the Act and applicable rules are the controlling legal texts.
Inspection does not, by itself, turn into a search or establish the separate conditions for seizure or arrest. If officers take a different action, identify the provision and authority stated for that action rather than assuming the inspection authorisation covers every power.
What search and seizure under section 67(2) mean
Search and seizure have a distinct threshold. A proper officer not below Joint Commissioner rank must have reasons to believe that goods liable to confiscation, or documents, books or things useful or relevant to proceedings under the Act, are secreted in a place. The officer may search and seize personally or authorise another central tax officer in writing.
When goods cannot practicably be seized
If it is not practicable to seize goods, section 67 allows an order prohibiting the owner or custodian from removing, parting with or otherwise dealing with them without permission. This is a restraint on dealing with the goods, not the same thing as taking physical possession.
Handling seized goods and records
The Act sets out processes for seized material. Documents, books and things are to be kept only for as long as necessary for examination or proceedings. Material not relied on for a notice is to be returned within 30 days after that notice is issued. A person from whose custody documents, books or things are taken may make copies or extracts in the presence of an authorised officer, unless doing so may prejudice the investigation.
Goods may be provisionally released against a bond and security, or on payment of applicable amounts. If no notice concerning seized goods is given within six months of seizure, the goods are to be returned; the period may be extended by up to a further six months for reasons recorded in writing. These are statutory periods in the CGST Act, not estimates or service targets.
The CGST Rules identify GST INS-01 as an authorisation form for inspection, search and seizure, and GST INS-02 as a seizure order form. Because the available rules reference is an older PDF, check the operative rules and forms before relying on a particular form or procedural detail.
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Arrest is a power concerning a person, not a routine consequence of an inspection or search. Under section 69, the Commissioner may, by order, authorise a central tax officer to arrest a person where the Commissioner has reasons to believe that the person committed one of the specified offences under section 132 and the relevant punishment conditions are satisfied.
Procedure depends on the offence category. For an arrest connected to the specified section 132(5) category, section 69 requires the authorised officer to inform the person of the grounds of arrest and produce the person before a Magistrate within 24 hours. The section also provides different bail treatment by offence category, subject to the applicable criminal procedure law. The 24-hour rule should not be generalized to describe every procedural detail for every offence or to imply that arrest follows automatically from premises activity.
CBIC’s circular index lists guidance titled Guidelines for Arrest and Bail in Relation to Offences Punishable under the CGST Act, 2017, dated 17 August 2022, as well as search-operation instructions dated 2 February 2021. The index is a pointer to administrative guidance, not a complete statement of later amendments, judgments or how the law applies to an individual case.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to read the paperwork during an enforcement visit
For a business, the practical task is to identify what action is being taken and keep a clear record of it. Without obstructing officials, check the document or provision cited, the officer’s authority, the place, person or goods covered, and whether the action is described as inspection, search, seizure, transit inspection, summons or arrest.
- Note the provision invoked and the authorising officer or order identified in the paperwork.
- Record what premises, people, goods or records the document covers.
- Keep copies of notices, orders, inventories, receipts and correspondence, and make a contemporaneous record of items produced or taken.
- For seized records, note any receipt and ask about the statutory process for copies or extracts; the Act permits them in an authorised officer’s presence unless that may prejudice the investigation.
- For seized goods, retain the seizure and release documents and track any notice or release process that applies.
- If the action involves arrest, seek qualified legal assistance promptly; do not assume premises-related paperwork determines the arrest procedure.
The Act expressly addresses written authorisation, receipts in specified document seizures, copies or extracts, provisional release and notice or return periods. Their application depends on the circumstances and the current law; this overview cannot determine an individual business’s rights or remedies. A business facing an active GST investigation should consult a qualified GST lawyer or tax professional.
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Which law and guidance to verify
This explanation concerns the central CGST Act. The relevant State or Union Territory GST provisions, amendments, notifications, rules, circulars and judgments may affect an actual action. The CBIC-hosted Central Goods and Services Tax Act, 2017 is the primary statutory source identified here, but its page does not specify a consolidated amendment cut-off date. Verify the operative central and relevant State or Union Territory texts before relying on a provision or deadline.
The other official materials identified for this topic are CBIC’s GST FAQ, Inspection, Search, Seizure and Arrest, CBIC’s circular index, and the CGST Rules forms reference. Administrative guidance can explain practice, but it should not be treated as a substitute for the applicable statute and rules or advice on a specific enforcement action.
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