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Under India’s Central Goods and Services Tax Act, 2017 (CGST Act), GST officers have specific powers to inspect premises, search and seize certain goods or records, summon people for inquiry and, in defined cases, arrest. Those powers have legal thresholds and procedural limits; an investigation alone does not give officers unrestricted authority or make arrest automatic. This guide covers the central Act, especially sections 67–71. State GST laws and procedures may add relevant details, so check the law that applies to the state and the facts of the case.
What can GST officers do during an investigation?
The central CGST Act gives officers different powers for different purposes. The main distinctions are what must trigger a power, who must authorize it, what the officer may do, and what safeguards apply. An inspection is not the same as a search; a summons is not an arrest; and a request or payment during an investigation is not automatically a lawful tax recovery.
The statutory descriptions below refer to the central Act. Its text includes amendments, including an amendment to section 67 effective 1 November 2024. The applicable State GST Act, current rules and notifications, and the facts of a particular matter may affect how a power operates.
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Inspection under section 67(1)
A proper officer not below the rank of Joint Commissioner may authorize another central-tax officer in writing to inspect specified premises. The officer must have “reasons to believe” that one of the circumstances listed in the Act exists. These include suspected suppression of taxable supplies or stock, excess input tax credit, or a contravention intended to evade tax. The provision also covers certain transporters, warehouse or godown operators, and other relevant people believed to be keeping untaxed goods or records or goods in a way likely to cause evasion.
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This is a defined inspection power tied to the statutory grounds and premises; it is not a general authority to enter anywhere at will.
Search and seizure under section 67(2)
Separately, a proper officer at least of Joint Commissioner rank may, after inspection or otherwise, search for relevant goods liable to confiscation or documents, books or things believed to be secreted in a place. The officer may conduct the search and seizure personally or authorize another central-tax officer in writing. If goods cannot practicably be seized, the officer may issue an order prohibiting their removal or handling without permission.
Section 67(4) provides a power to seal or break open premises or specified storage or receptacles when access is denied. It is a power attached to an authorized search, not a free-standing right of entry.
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What safeguards apply during a search?
CBIC Instruction No. 01/2021, dated 2 February 2021, sets out search procedures and addresses deficiencies in procedural compliance. It calls for valid, justifiable reasons recorded on file and proper authorization. A search of one person’s premises cannot be conducted under authorization for another person’s premises.
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The instruction describes safeguards including:
- Two or more independent witnesses.
- Identification of the officers and display of the search authorization before the search begins.
- A panchnama recording the search, including its start and end times, and an inventory or list of recovered items.
- Signatures on the record and a copy of the panchnama with annexures for the person in charge.
- A woman officer on the team when the search is of a residence.
The accessed copy of the instruction is in Hindi. It describes CBIC search procedure; it should not be treated as an exhaustive account of every rule that may apply under criminal procedure or a State GST law.
What happens to seized goods and documents?
Section 67 limits how seized material may be handled. In general, the person from whom documents, books or things are seized may make copies or extracts in the presence of an authorized officer. The proper officer may withhold that opportunity if they consider that it would prejudice the investigation.
Goods may be provisionally released against a bond and security, or on payment, as provided by the Act and rules. If no notice concerning seized goods is issued within six months, the goods are to be returned. The proper officer may extend that period once, for up to a further six months, if there is sufficient cause. Documents, books or things not relied upon for the notice are to be returned within 30 days after the notice is issued.
Can officers stop and inspect goods in transit?
Section 68 concerns goods in movement. For covered consignments, the person in charge of a conveyance may have to carry prescribed documents or devices. If a proper officer intercepts the conveyance, the officer may require those documents or devices and inspect the goods. The applicable document requirements and any value thresholds depend on the rules and notifications in force for the relevant date; do not assume one list or threshold applies to every consignment.
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What does a GST summons require?
Under section 70, a proper officer may summon a person whose attendance the officer considers necessary to give evidence or produce documents or other things in an inquiry. The Act treats the inquiry as a judicial proceeding for the purposes specified in section 70(2).
A summons is an inquiry power, not an arrest order and not, by itself, a finding that the recipient committed an offence. CBIC’s circular index records summons guidance issued on 17 August 2022. The specific attendance or production obligation depends on the summons and applicable law. If you receive one, read what it requires and obtain qualified advice about your response; do not assume that another person may attend for you or that you may disregard it.
When can a GST officer arrest someone?
Arrest is a separate and conditional power under sections 69 and 132. Section 69(1) allows the Commissioner to authorize a central-tax officer to arrest a person where the Commissioner has reasons to believe that the person committed one of the specified offences in section 132(1)(a)–(d), punishable under the provisions identified there. Not every GST non-compliance is an arrest offence.
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For offences covered by section 132(5), section 69(2) requires the authorized officer to inform the arrested person of the grounds and produce that person before a Magistrate within 24 hours. Section 69(3) addresses bail and custody treatment for specified offence categories, subject to applicable criminal procedure. The precise procedural consequences depend on the offence and circumstances.
A Karnataka High Court judgment dated 13 October 2025 describes CBIC Instruction No. 01/2025-GST, dated 13 January 2025, as requiring the grounds of arrest to be explained and furnished in writing as an annexure to the arrest memo, with acknowledgment; it also describes recording the arrest date and time and providing a copy of the memo. That is the High Court’s account of a procedural instruction. Check the current official instruction and applicable law rather than assuming those details from the judgment alone.
Can officers access business premises without a search?
Section 71 gives an officer authorized by a proper officer not below Joint Commissioner rank access to a registered person’s place of business. The purpose is to inspect books, documents, computers, software and other available things for audit, scrutiny, verification or checks to safeguard revenue.
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This is a specified access power for business premises and stated purposes. It should not be confused with a section 67 search, or treated as unrestricted authority to search any private place.
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Can officers make you pay tax during an investigation?
Distinguish a taxpayer’s voluntary payment from recovery by the department. CBIC Instruction No. 01/2022-23, dated 25 May 2022, says tax dues should not be recovered during search, inspection or investigation outside the legal process, including notice and adjudication where applicable. It also says the law does not bar a taxpayer from voluntarily paying an amount they have ascertained as due, and directs officers to inform taxpayers about voluntary payment through DRC-03.
The existence of DRC-03 or the ability to make a voluntary payment does not, by itself, show that a payment requested or demanded during an investigation was voluntary. A Karnataka High Court judgment dated 13 October 2025 discusses the distinction in the context of that case; it is not a nationwide finding about every investigation. If a payment is sought, document what was said and done and promptly get qualified Indian GST advice rather than relying on a general article to decide whether to pay or refuse.
What should you do if officers visit or contact you?
Keep the response focused on the specific action and the records it creates. Do not obstruct officers, destroy or conceal material, or assume that an irregularity can be resolved by refusing every request.
- Ask which statutory power is being used and, for an authorized search, ask to see the written authorization and confirm that it identifies the premises being searched.
- Keep a copy of the panchnama and its annexures; check that the inventory describes items taken, and note any disagreement or missing item in an appropriate record.
- For seized documents, ask about the procedure for making copies or extracts. For goods, obtain the seizure or restraint paperwork and ask about provisional release under the applicable rules.
- For a summons, preserve it and note its stated inquiry, attendance requirement and documents sought. Get advice promptly on how to comply.
- If someone is arrested, seek qualified legal assistance promptly and keep copies of the arrest-related documents, including the grounds and memo where provided.
- If payment is discussed during an investigation, retain the records of the request and any payment, and get advice on whether it was voluntary or a recovery.
The governing criminal-procedure framework may involve statutory changes and transition rules. The CGST Act text references the Code of Criminal Procedure, 1973; the applicable current enactment and any savings provisions should be checked for the particular procedure and date.
How to understand the limits of GST investigation powers
The central Act authorizes meaningful investigative steps, but each step has its own trigger, decision-maker, scope and process. Section 67 inspection and search depend on specified grounds and authorization; section 70 summons concerns evidence or material in an inquiry; section 69 arrest is tied to listed offences and a reasoned decision; and sections 67 and 71 govern distinct forms of access or handling. If a live matter involves a search, seizure, summons, arrest or payment, the legality and appropriate response turn on the actual authorization, records, applicable State GST law and current procedure. Consult qualified Indian GST counsel for case-specific advice.
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