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Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Repair Windows errors before they cause bigger problemsFix Now →If GST officers search your premises, seize records or goods, or stop a consignment in transit, first identify the legal provision on the authorization, order, or notice. A search and seizure under section 67 of the Central Goods and Services Tax (CGST) Act follows different safeguards and release rules from transit detention under section 129. Stay cooperative, obtain every document, check the inventory, preserve evidence, and act on the written deadlines. This is general information; a live matter should be reviewed promptly under the applicable CGST, State GST or Union territory law and current amendments.
What to do in the first 30 minutes
Do not obstruct officers, argue physically, move goods, hide records, or alter accounting data. Ask for the officers’ names and designations, note the date, time and location, and identify everyone present. Contact your GST adviser or lawyer as soon as possible while keeping the interaction orderly.
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- Identify the legal route. Ask whether the action is under section 67, section 129, or another provision. A section 67 authorization for inspection, search or seizure is issued in Form GST INS-01 under the rules.
- Request the written authority and order. Keep copies or clear scans of the authorization, seizure order, detention order, notice, panchnama or inventory, and any acknowledgement of service.
- Record the factual scene. List the premises, vehicle or warehouse searched; the officers attending; witnesses; start and finish times; and any goods or records removed.
- Protect source records. Preserve invoices, e-way bills, transport documents, stock registers, purchase and sales ledgers, GST returns, payment records and correspondence. Do not create replacement documents or backdate entries.
- Calendar every deadline. The date of seizure, date of notice, date of service and any hearing date determine your next steps. Transit cases can have especially short statutory periods.
Section 67 and section 129 are not the same process
The document that officers serve should tell you which procedure governs the case. The distinction affects the authority required, the forms used, the way goods may be released and the time limits for responding.
| Issue | Section 67: search or seizure | Section 129: goods in transit |
|---|---|---|
| Typical setting | Business premises, warehouse, residence or another place where goods, books, documents or things are believed to be secreted. | Goods being transported or stored in transit in contravention of the Act or Rules. |
| Trigger | Specified reasons to believe, including possible suppression of transactions or stock, excess input tax credit claims, or conduct likely to cause evasion. | A transit contravention identified when a consignment or vehicle is stopped or checked. |
| Main documents | INS-01 authorization, INS-02 seizure order, inventory and, where physical seizure is impracticable, INS-03 prohibition order. | Detention or seizure order, notice, hearing opportunity and release or penalty order under the section 129 procedure. |
| Release framework | Provisional release under section 67(6) and Rule 140, or the applicable tax, interest and penalty payment route. | A separate statutory payment or security route. Do not substitute section 67’s bond and bank-guarantee terms without checking the notice and current law. |
| Key time limit in the material reviewed | If no notice concerning seized goods is issued within six months, return is required; a proper officer may extend this for sufficient cause by up to a further six months. | The current section 129 text reviewed provides for notice within seven days and an order within seven days of notice service. Verify the text and amendments applicable to your case. |
State and Union territory GST enactments generally contain corresponding provisions, but forms, administrative instructions and amendments can differ. Read the actual notice and identify the department before relying on a particular form or deadline.
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How a section 67 search or seizure is authorized
Inspection grounds under section 67(1)
Section 67(1) concerns inspection where a proper officer not below the rank of Joint Commissioner has reasons to believe that relevant evasion-related circumstances exist. The statutory examples include suppression of transactions or stock, claims of excess input tax credit, and specified conduct by transporters or warehouse operators involving untaxed goods or records or goods kept in a manner likely to cause evasion.
Search and seizure under section 67(2)
Section 67(2) permits search and seizure where the proper officer has reasons to believe that goods liable to confiscation, or documents, books or things relevant to proceedings, are secreted in a place. A Joint Commissioner or higher-ranking proper officer may act personally or authorize another central tax officer in writing. Ask to see that written authorization; retain it with the case file.
What the rules’ forms mean
- Form GST INS-01: authorization for inspection, search or seizure under section 67.
- Form GST INS-02: order of seizure for goods, documents, books or things.
- Form GST INS-03: prohibition on dealing with goods where physical seizure is impracticable. Goods subject to this order must not be moved, sold, transferred or otherwise dealt with without prior permission.
- Inventory: the rules require a description and quantity or unit and, where applicable, make, mark or model. The person from whose custody the items are seized is expected to sign it.
Compare the inventory line by line with what officers actually take. Point out missing, duplicated or inaccurate descriptions in writing and retain a signed copy. If an officer asks you to sign an inaccurate inventory, seek advice immediately and record your objection rather than silently accepting it.
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Section 67(5) recognizes a specific access right. The person from whose custody documents are seized may make copies or take extracts in the presence of an authorized officer at the place and time indicated by that officer. The exception is important: the proper officer may refuse copying or extraction where, in the officer’s opinion, it could prejudicially affect the investigation.
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Make a written request identifying the records needed for payroll, GST returns, banking, customer deliveries and other continuity-critical work. Ask for the supervised copying date, place and permitted format. Keep a log of what was requested, what was copied and what was refused, including the stated reason. Do not attempt to photograph, remove or access seized material without permission.
Getting seized goods provisionally released
Statutory route
Section 67(6) provides for provisional release of seized goods on execution of the prescribed bond and furnishing the prescribed security. It also recognizes release through payment of the applicable tax, interest and penalty, as the case may be. The correct route depends on the goods, allegations and order; it is not an automatic release merely because the owner asks.
Rule 140 documents and security
Rule 140 specifies Form GST INS-04 for the bond. The bond is for the value of the goods, while the security is a bank guarantee equivalent to the applicable tax, interest and penalty. Ask the proper officer to state in writing the valuation, tax computation, interest period, penalty basis, bank-guarantee validity and any conditions attached to release.
What to put in the request
- Identify the seizure order, inventory number, date and location.
- Describe why the goods are needed, including manufacturing, customer delivery, seasonal value, perishability or risk of depreciation.
- Offer the section 67(6) and Rule 140 bond and security route, subject to the officer’s prescribed calculation.
- Attach ownership, purchase, stock and valuation records and explain any item that is disputed.
- Request a reasoned written decision, the amount and form of security, release conditions and a handover date.
Keep proof of delivery for the application. If the request is rejected or no decision is issued, the refusal, delay and reasons should be reviewed by a GST lawyer with the underlying records. Do not assume that paying an amount or furnishing a guarantee resolves the substantive tax dispute unless the written order says so.
The six-month notice clock for seized goods
Section 67(7) states that when no notice concerning seized goods is given within six months, the goods shall be returned to the person from whose possession they were seized. For sufficient cause, the proper officer may extend that period by no more than a further six months.
Build a written timeline with the seizure date, the date on which each notice was served, and any extension order. Ask for a copy of an extension and the stated sufficient cause. The deadline is a statutory point to raise in the file; it is not a reason to take or sell the goods yourself, and practical release may still require a formal request and verification of the record.
When goods are detained in transit under section 129
Preserve the transport file
Immediately collect the e-way bill, tax invoice or bill of supply, vehicle and driver details, loading records, delivery instructions, purchase order, transporter records and any prior correspondence. Save the electronic versions and keep the originals available for inspection.
Track the short notice and order periods
The current section 129 text reviewed provides for a notice within seven days and an order within seven days of service of the notice. Penalty cannot be determined without an opportunity to be heard. Record exactly when and how the notice was served, because a missed response date can affect release and challenge options.
Respond to the allegation, not just the amount
Compare every allegation with the invoice, e-way bill, vehicle record and actual goods. Explain clerical errors, trans-shipment, vehicle changes, quantity differences or document availability with supporting evidence. Ask for the hearing date and submit a concise written reply before it. Section 129’s payment or security calculation is distinct from section 67’s provisional-release mechanism; the owner’s appearance and the statutory category of goods can affect the consequence. Obtain case-specific advice before paying or furnishing security.
Records and communications that strengthen your position
- Chronology: one page listing each event, document, officer communication and deadline.
- Evidence index: file names or exhibit numbers for invoices, returns, ledgers, e-way bills, transport records and correspondence.
- Inventory reconciliation: seized quantity and identifiers matched against stock records and physical observations.
- Written requests: copies, provisional release, clarification of calculations and confirmation of hearing dates.
- Service proof: email headers, portal acknowledgements, receiving stamps, courier tracking and screenshots of notices.
Keep communications factual. Do not make unsupported admissions, speculate about an employee’s conduct or sign a statement you do not understand. Ask for time to obtain advice where a statement, valuation or calculation has legal consequences.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Common mistakes and how to avoid them
Assuming every detention is a section 67 seizure
A vehicle stop may be section 129, with different notice, hearing and release rules. Read the statutory reference on the order before preparing a response.
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An incorrect model, quantity or unit can create a dispute later. Check each line, write a specific objection and retain your copy.
Ignoring an INS-03 prohibition
When physical seizure is impracticable, the goods may remain with the owner or custodian but cannot be dealt with without permission. Treat the prohibition as binding and obtain written authorization for any necessary movement.
Waiting for a verbal promise of release
Use written applications and insist on a written decision. Verbal assurances do not establish the bond amount, bank-guarantee terms or deadline.
Letting the six-month period pass untracked
Calendar the seizure date and ask whether a notice or lawful extension was issued. Preserve proof of every service date.
A practical case-file checklist
- Written authorization, seizure or detention order and every notice.
- INS-01, INS-02, INS-03 or INS-04 forms, where applicable.
- Signed inventory showing description, quantity or unit and make, mark or model where relevant.
- Inspection or search records, witness details and officer contact information.
- Invoices, e-way bills, GST returns, stock and transport records.
- Requests for supervised copies or extracts and the responses received.
- Provisional-release application, valuation, tax-interest-penalty calculation and bank-guarantee correspondence.
- Proof of service and a calendar of notice, hearing, order and extension dates.
When to obtain urgent legal help
Obtain prompt professional advice when goods are perishable or rapidly depreciating, the business depends on the seized stock or books, a bank guarantee or large payment is demanded, a notice or hearing date is imminent, an extension is issued, officers refuse access to essential records, or the inventory does not match the goods. A professional can identify the correct statute, preserve objections, evaluate release conditions and consider available remedies without encouraging obstruction or destruction of evidence.
Further reading and jurisdiction check
The National Academy of Customs, Indirect Taxes and Narcotics (NACIN) publishes a Handbook of GST Law and Procedures covering search, seizure and related provisions, including sections 67–72 and Rules 138–141. Treat it as a general procedural reference, not a substitute for the current CGST Act, applicable State or Union territory enactment, rules, departmental instructions and the exact orders in your case.
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