CGST Act · Chapter XIV
Inspection Search Seizure and Arrest
s. 67Power of inspection search and seizure
Section 67 is the department's power to enter premises, search them, and seize goods, documents and things. It is exercised on the authority of a Joint Commissioner who must have "reasons to believe", and it is hedged with time limits: seized goods must be followed by a notice within six months, and documents not relied on must be returned.
- Under section 67(1) of the CGST Act, 2017 an officer not below Joint Commissioner who has reasons to believe that a taxable person has suppressed transactions or stock, claimed excess credit or contravened the Act to evade tax — or that a transporter or warehouse keeper holds goods that escaped tax — may authorise inspection of the premises.
- Under section 67(2), on reasons to believe that goods liable to confiscation, or documents, books or things useful for proceedings, are secreted, he may authorise search and seizure (Form GST INS-01; seizure in INS-02).
- Seized goods may be released provisionally on a bond and security or on payment of tax, interest and penalty (section 67(6)); if no notice is issued within six months of seizure (extendable by six months), they must be returned (section 67(7)).
- Documents not relied on in the notice must be returned within thirty days of the notice (section 67(3)).
- Cash is "money", not "goods", and cannot be seized as such under section 67(2) (Deepak Khandelwal v Commissioner of CGST, Delhi HC, 2023; the department's SLP was dismissed).
s. 68Inspection of goods in movement
Section 68 is the basis of the e-way bill. Goods above a specified value must travel with prescribed documents, and officers may stop a vehicle, check the documents and inspect the goods. Detention and penalty for goods moving without proper documents follow under section 129.
- Under section 68(1) of the CGST Act, 2017 the person in charge of a conveyance carrying goods above a specified value must carry prescribed documents and devices — the invoice or delivery challan and the e-way bill (Rule 138).
- The e-way bill is generally required for consignments above Rs. 50,000, with exceptions in Rule 138(14) and Annexure to the Rules.
- An officer may intercept a conveyance, verify the documents and inspect the goods (section 68(3)); the inspection is reported in Form EWB-03 (Rules 138B, 138C), and the procedure for detention uses the MOV forms prescribed by Circular 41/15/2018-GST.
- Goods found in transit in contravention may be detained and released on payment of penalty under section 129.
s. 69Power to arrest
Section 69 lets the Commissioner authorise the arrest of a person he has reason to believe has committed a serious GST offence — such as issuing invoices without supply or fraudulently availing credit above Rs. 2 crore. In Radhika Agarwal (2025) the Supreme Court upheld the power but insisted on the safeguards of criminal procedure.
- Under section 69(1) of the CGST Act, 2017 the Commissioner may authorise arrest where he has reasons to believe that a person has committed an offence in clauses (a) to (d) of section 132(1) punishable under section 132(1)(i) or (ii) or section 132(2) — broadly, offences involving more than Rs. 2 crore, or repeat offences.
- For cognizable and non-bailable offences (section 132(5)) the arrested person must be told the grounds of arrest and produced before a Magistrate within twenty-four hours (section 69(2)); for other offences the person is entitled to bail (section 69(3)).
- In Radhika Agarwal v Union of India (2025) the Supreme Court upheld sections 69 and 70 as within Parliament's power under Article 246A.
- Arrest does not require a prior assessment of tax, but the reasons to believe must be explicit, based on material, and recorded; grounds of arrest must be given in writing; and CrPC/BNSS safeguards, including anticipatory bail, apply.
s. 70Power to summon persons
Section 70 lets the proper officer summon anyone — not only the taxpayer — to give evidence or produce documents in an inquiry, with the powers of a civil court. Statements made are evidence, and false statements are punishable because the inquiry is a judicial proceeding.
- Under section 70(1) of the CGST Act, 2017 the proper officer may summon any person whose attendance he considers necessary to give evidence or produce documents or things in an inquiry, as a civil court may under the Code of Civil Procedure.
- From 01.11.2024 those summoned must attend in person or through an authorised representative, as the officer directs, state the truth and produce what is required (section 70(1A)).
- The inquiry is a "judicial proceeding" for sections 193 and 228 of the Indian Penal Code (now the corresponding provisions of the Bharatiya Nyaya Sanhita, 2023) — false evidence and insult to the officer are punishable (section 70(2)).
- The Supreme Court upheld section 70 in Radhika Agarwal v Union of India (2025); a person summoned is not thereby an accused.
s. 71Access to business premises
Section 71 gives authorised officers, audit parties and special auditors access to business premises to examine books and computer systems, and requires the business to produce its key records — accounts, trial balance, audited financial statements, cost and tax audit reports — on demand.
- Under section 71(1) of the CGST Act, 2017 an officer authorised by a Joint Commissioner or above has access to any place of business of a registered person to inspect books, documents, computers and software for audit, scrutiny, verification and checks to protect the revenue.
- The person in charge must produce, within fifteen working days of demand or such further period as allowed, the records declared to the department, the trial balance, audited financial statements, cost audit and income-tax audit reports, and other relevant records (section 71(2)).
s. 72Officers to assist proper officers
Section 72 obliges other arms of government to help GST officers enforce the Act — for instance, police assistance during searches or railway officers in tracing consignments.
- Under section 72(1) of the CGST Act, 2017 officers of police, railways, customs, land revenue (including village officers), State tax and Union territory tax must assist the proper officers in implementing the Act.
- The Government may by notification require any other class of officers to assist when called upon by the Commissioner (section 72(2)).