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GST officers do not have an unrestricted power to search business premises. Section 67 of the Central Goods and Services Tax Act, 2017 (CGST Act) sets separate conditions for inspection and for search and seizure, including a senior-officer threshold and a requirement for “reasons to believe.” The Act and rules also prescribe forms, procedures and safeguards for seized records and goods.
When can GST officers inspect, search or seize?
Section 67 gives officers distinct powers. An inspection is not the same as a search, and a visit by officers should not automatically be described as a “raid.” The statutory grounds and powers depend on which subsection is being used.
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| Power | Statutory threshold and purpose | Decision-maker and authorisation | Scope |
|---|---|---|---|
| Inspection, section 67(1) | A proper officer must have reasons to believe that one of the specified grounds applies. These include specified conduct connected with suppression, excess input tax credit or contravention to evade tax, and specified conduct involving goods, accounts or storage by transporters, warehouse or godown operators, or others. | The decision must be made by a proper officer not below the rank of Joint Commissioner. That officer may authorise another central-tax officer in writing to inspect the relevant place. | Inspection of a place relevant to the statutory grounds. |
| Search and seizure, section 67(2) | A proper officer 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. This power may be used after inspection or otherwise. | The decision must be made by a proper officer not below the rank of Joint Commissioner. The officer may act personally or authorise another central-tax officer in writing. | Search for the specified goods or material and, where authorised and justified, seizure. If goods cannot practicably be seized, an order may prohibit their owner or custodian from moving or dealing with them without permission. |
“Reasons to believe” and the rank requirement are part of the Act’s text; suspicion alone does not automatically authorise every search. Whether a particular operation met the legal threshold depends on its authorisation and facts, as well as the law applicable to that case.
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CGST Rule 139 sets out forms for these actions. When a proper officer authorises a subordinate officer to conduct inspection, search or seizure, the authorisation is made in FORM GST INS-01. For an actual seizure under section 67(2), the officer makes an order in FORM GST INS-02. If seizure is not practicable and the officer instead prohibits dealing with goods, the rules provide FORM GST INS-03.
The rules also require an inventory describing seized items. It should include details such as description, quantity or unit, and make, mark or model where applicable, and be signed by the person from whose custody the items are seized.
Practical record-keeping at the premises
- Note the names and identifying details of the officers present, and ask to see the written authorisation.
- Keep copies of the forms and inventory provided to you, and record which goods, documents or other items were taken or sealed.
- Preserve copies of relevant business records where possible, and note any access restrictions or other instructions given during the operation.
These are prudent documentation steps, not a guarantee that every document must be handed over at the scene or that a dispute about paperwork automatically invalidates the action. The forms and rules establish the prescribed process; they do not resolve every operational dispute.
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What rights apply to seized records and other material?
Copies and extracts
If documents are seized from your custody, section 67 entitles you to make copies or extracts in the presence of an authorised officer, at the time and place that officer indicates. The proper officer may restrict copying if, in that officer’s opinion, it could prejudice the investigation.
Return of material not relied on for a notice
Documents, books or things seized or produced that are not relied on to issue a notice under the Act or rules must be returned within a period not exceeding 30 days from the issue of that notice. This is a conditional return rule tied to material not relied upon; it is not a blanket 30-day deadline for returning everything seized.
Retention while material is needed
Seized documents, books or things may be retained only for as long as they are needed for examination, inquiry or proceedings. This retention provision is separate from the 30-day return rule, which applies to material not relied upon for a notice.
How can seized goods be released, and what time limit applies?
| Situation | Release or return route | Relevant condition or clock |
|---|---|---|
| Goods seized under section 67(2) | Provisional release may be available on the prescribed bond and security or, as applicable, payment of tax, interest and penalty. Rule 140 describes a bond for the value of the goods and a bank guarantee for the applicable tax, interest and penalty. | Release is subject to the prescribed terms; it is not automatic. |
| Seized goods or things that are perishable or hazardous | Rule 141 provides a separate route for release upon payment of the lower of the market price or the amount of tax, interest and penalty that is or may become payable. The rule also addresses possible disposal if payment is not made. | The special route applies to perishable or hazardous items. |
| Goods seized under section 67(2) | The goods must be returned if no notice in respect of them is given within six months of seizure. | For sufficient cause, the proper officer may extend the period by up to a further six months. |
The six-month provision concerns notice in respect of seized goods. It is not a general six-month limit on every investigation or on retaining every seized document.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Can officers open a locked area or access an electronic device?
Section 67(4) addresses denied access. If access is denied and the authorised officer suspects that goods, accounts, registers or documents are concealed in a specified door, almirah, electronic device, box or receptacle, the officer may seal or break it open. This is a conditional power tied to denied access and the stated suspicion; it is not an unlimited authority to access any device or location.
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The CBIC GST FAQ, second edition, describes inspection as a “softer” provision than search and says inspection requires written authorisation by an officer of Joint Commissioner rank or above. That is explanatory material, not a substitute for the statute. Section 67 itself sets out the conditions and scope separately for inspection under subsection (1) and search and seizure under subsection (2), including when another officer may be authorised to act.
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