If GST officers arrive to search your premises, calmly ask to see the written search authorisation before the search begins. Check which officer issued it and whether the premises match, note the officers’ identities and what happens, and do not physically obstruct them. If they proceed without showing it, make a dated note of your request and their response, keep every document served, and contact a GST lawyer promptly. A failure to display the authorisation is important to record, but it does not by itself determine the legality of every subsequent action.
What to do during the search
- Ask to see the written search authorisation before the search starts. Note the issuing officer’s designation and check that the premises described match the place being searched. Rule 139 of the Central Goods and Services Tax Rules prescribes Form GST INS-01 when a proper officer authorises a subordinate officer to inspect, search or seize. CBIC Instruction 01/2021 says authorisation should be shown to the person in charge before the search begins.
- Record who is present and what happens. Write down the officers’ names and identity details, when they arrive and leave, the witnesses present, areas searched, and any doors, containers or devices opened or sealed. CBIC’s instruction calls for officers to identify themselves, at least two independent witnesses, and a panchnama (a record of the search) that notes events and timing.
- Ask for copies of the relevant records. Request the authorisation, panchnama and annexures, and any seizure order or inventory. Rule 139 provides for Form GST INS-02 as an order of seizure and Form GST INS-03 as a prohibition order where goods cannot practicably be seized. Keep copies of papers given to you and make a contemporaneous note of anything not provided.
- Do not obstruct or alter records. Do not conceal, move or destroy material, or physically prevent officers from proceeding. Read any statement or record carefully before signing; if it is inaccurate or you do not understand it, seek advice on how to record your objection through proper channels.
- If no authorisation is shown, document the exchange. Note the time you asked, the response, who heard it, and whether the search continued. Preserve the papers and contact a GST lawyer promptly. Avoid making a payment during the search merely in response to an officer’s request; first obtain advice and official documentation.
- If documents are taken, ask about copies or extracts. Section 67(5) of the CGST Act allows the person from whose custody documents are seized to make copies or extracts in the authorised officer’s presence at the place and time indicated, unless the proper officer considers that doing so may prejudice the investigation.
What authorisation GST officers need
Readers often call the document a “search warrant”; the CGST Rules refer to a search authorisation. Under section 67(2) of the CGST Act, a proper officer not below the rank of Joint Commissioner must have reasons to believe that goods liable to confiscation, or documents, books or things useful or relevant to proceedings, are secreted at a place. That officer may search personally or authorise another central tax officer in writing. The section states: “Where the proper officer, not below the rank of Joint Commissioner, either pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to believe that any goods liable to confiscation or any documents or books or things, which in his opinion shall be useful for or relevant to any proceedings under this Act, are secreted in any place, he may authorise in writing any other officer of central tax to search and seize or may himself search and seize such goods, documents or books or things.”
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The authorising officer’s rank is not necessarily the rank of every officer on the search team. Rule 139(1) provides for the proper officer, not below Joint Commissioner rank, to issue Form GST INS-01 authorising a subordinate officer. Check the authorisation and the officers’ identities rather than assuming each team member must hold the authorising rank.
CBIC Instruction 01/2021 says the competent authority should have valid and justifiable reasons for authorising a search, recorded on file, and directs that authorisation be shown before the search begins. This is CBIC’s written guidance, not a court ruling. The legal threshold and the instruction are reasons to record what was shown and what occurred; they are not a reason to physically resist.
How a search differs from an inspection
Section 67(1) covers inspection in specified suspected tax-evasion circumstances and also requires written authorisation from a proper officer not below Joint Commissioner rank. Section 67(2) covers search and seizure and adds the requirement that the officer have reasons to believe relevant goods or records are secreted at a place. These powers should not be confused with access for audit under section 71 or inspection of goods in movement under section 68.
What to check if goods or records are seized
Seizure records and access to documents
Ask for the seizure order and an inventory describing the items seized. Rule 139 provides for the inventory to be signed by the person from whom the items are seized. If documents are taken, section 67(5) provides the copy-or-extract process described above, subject to the investigation-prejudice exception.
Possible release and return periods
Under section 67(3), documents, books or things not relied on for the notice must be returned within a period not exceeding 30 days from issuance of that notice. The Act also provides for provisional release of seized goods on the prescribed bond and security or payment. Under section 67(7), seized goods are to be returned if no notice is given within six months; the proper officer may extend that period by up to a further six months for sufficient cause. Rules 140–141 address provisional release and perishable or hazardous goods. These provisions have conditions and procedural details, so get advice promptly if a seizure affects your business or property.
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The provisions described here are from the central CGST Act and Rules. State and Union Territory GST laws, local authorisations, notifications and instructions may also be relevant. Do not assume every procedural detail is identical across jurisdictions; have a lawyer check the law and documents that apply where the premises are located. This is general information, not individual legal advice.
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