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.
Key points
- 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.
The provisions
69(1)Authorisation to arrest
Statutory text
(1) Where the Commissioner has reasons to believe that a person has committed any offence specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) of section 132 which is punishable under clause (i) or (ii) of sub-section (1), or sub-section (2) of the said section, he may, by order, authorise any officer of central tax to arrest such person.
*Enforced w.e.f. 1st July, 2017.
- CBIC Instruction 02/2022-23 (GST-Investigation), 17.08.2022 — guidelines for arrest and bail
Case on this provision
Radhika Agarwal v Union of India
2025 INSC 272 · 27.02.2025 · Supreme Court, 3 Judges (Sanjiv Khanna CJI, M.M. Sundresh, Bela M. Trivedi JJ.; Trivedi J. concurring)
- Facts
- A batch of writ petitions challenged the arrest and summons provisions of the Customs Act, 1962 and the GST Acts. Petitioners argued that Article 246A gives Parliament power only to levy and collect tax, not to arrest; that arrest before tax is assessed is arbitrary; and that persons were being arrested, or coerced into paying tax during searches, without safeguards.
- Held
- Article 246A is to be read broadly: the power to levy and collect GST includes the power to prevent evasion through summons, arrest and prosecution, so sections 69 and 70 are valid. Assessment of tax is not a precondition to arrest, but the Commissioner's reasons to believe must be explicit, refer to the material and evidence, and be recorded, with a sufficient degree of certainty that an offence under section 132(1)(a)–(d) is made out above the monetary limits. The arrested person must be given the grounds of arrest in writing. The protections of the Code of Criminal Procedure (now BNSS) apply, including anticipatory bail, and the department's own instructions on arrest are binding. Payments extracted by coercion during search are not voluntary; the taxpayer may seek their refund, and action may be taken against the officers.
- Here
- The arrest power is valid but disciplined: the file must show recorded reasons tied to evidence, the grounds of arrest must be served in writing, and a person apprehending arrest may seek anticipatory bail.
69(2)–(3)Magistrate, bail and police powers
Statutory text
(2) Where a person is arrested under sub-section (1) for an offence specified under sub- section (5) of section 132, the officer authorised to arrest the person shall inform such person of the grounds of arrest and produce him before a Magistrate within twenty four hours.
(3) Subject to the provisions of the Code of Criminal Procedure, 1973 (2 of 1974),-
(a) where a person is arrested under sub-section (1) for any offence specified under sub-section (4) of section 132, he shall be admitted to bail or in default of bail, forwarded to the custody of the Magistrate;
(b) in the case of a non-cognizable and bailable offence, the Deputy Commissioner or the Assistant Commissioner shall, for the purpose of releasing an arrested person on bail or otherwise, have the same powers and be subject to the same provisions as an officer-in-charge of a police station.
What it means
Offences above Rs. 5 crore under section 132(1)(a)–(d) are cognizable and non-bailable (section 132(5)); the person must be produced before a Magistrate within twenty-four hours. All other offences are non-cognizable and bailable (section 132(4)): the person must be released on bail or forwarded to the Magistrate, and the Deputy or Assistant Commissioner has the bail powers of an officer in charge of a police station.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- Can a person be arrested under GST before tax is assessed?
- Yes, but only on the Commissioner's recorded reasons to believe, based on material, that a serious offence under section 132(1)(a)–(d) above the monetary limits has been committed. The Supreme Court so held in Radhika Agarwal v Union of India (2025), also holding that grounds of arrest must be given in writing and anticipatory bail is available.
- When is a GST offence non-bailable?
- Offences under section 132(1)(a)–(d) involving more than Rs. 5 crore are cognizable and non-bailable (section 132(5) CGST); other offences are non-cognizable and bailable.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The offences are in section 132(1)(a)–(d): supplying without an invoice to evade tax, issuing invoices without supply leading to wrongful credit or refund, availing credit on such invoices, and collecting tax but not paying it over beyond three months. The arrest power attaches where the amount exceeds Rs. 2 crore (clauses (i) and (ii)) or the person has a previous conviction (sub-section (2)). CBIC Instruction 02/2022-23 (GST-Investigation), 17.08.2022, lays down conditions: arrest only where necessary — for instance, where the person may tamper with evidence or abscond — with the Commissioner's recorded reasons and the arrest memo setting out the grounds.