Inspection, search and seizure are different powers under section 67 of India’s Central Goods and Services Tax Act, 2017 (CGST Act). An inspection examines specified business premises or records when a Joint Commissioner or higher-ranking proper officer has statutory reasons to believe that tax evasion-related conditions exist. A search goes further: it looks for goods, documents, books or things believed to be hidden in a place. Seizure is the act of taking relevant goods or records into official custody, or—when physical custody is impracticable—prohibiting the owner from moving or dealing with them.
The powers are not a final assessment of tax. Written authorisation, prescribed forms, limits on retention, copy-access and return rules apply. State GST laws and the facts of a particular case may also affect the procedure, so this is a general explanation rather than advice on a specific visit or notice.
As an Amazon Associate I earn from qualifying purchases.
How inspection, search and seizure differ
Section 67 of the CGST Act creates connected but distinct authorities. The following comparison shows what each action is designed to do and what threshold applies.
| Power | Trigger and reasons to believe | Authority and written process | What officers may do |
|---|---|---|---|
| Inspection (section 67(1)) | Specified indications of suppression, excess input-tax credit, contravention to evade tax, or tax-evading storage or transport activity. | A proper officer not below Joint Commissioner rank must have reasons to believe and authorise another central-tax officer in writing. | Inspect specified business or other premises, accounts, goods and relevant activity. |
| Search (section 67(2)) | Reasons to believe that confiscable goods, or documents, books or things relevant to proceedings, are secreted in a place. | The officer may search personally or authorise another central-tax officer in writing. | Look in the place for the goods or material described by the statutory threshold. |
| Seizure | Goods liable to confiscation, or records and things useful or relevant to proceedings, are identified during a section 67(2) action. | A seizure order and inventory process apply; prescribed forms are used under Rule 139. | Take custody of goods or records, or prohibit dealings when physical seizure is not practicable. |
Read the operative wording of section 67 in the official CGST Act text. An inspection does not automatically authorise a search or seizure; the separate statutory conditions for those powers must be met.
#1 Best Overall
What a GST inspection covers
Statutory grounds
Under section 67(1), the proper officer must have “reasons to believe” that one of the listed situations exists. For a taxable person, the grounds include suppression of a transaction relating to supply or stock, claiming input-tax credit in excess of entitlement, or contravening the Act or rules to evade tax. The provision also reaches certain transporters and operators of warehouses, godowns or other places where goods may have escaped tax or where accounts or goods are kept in a way likely to cause evasion.
The Joint Commissioner-or-above officer can authorise another central-tax officer to inspect the specified business or other premises. The authorisation is not an open-ended power to inspect every location connected with a taxpayer; the places and purpose should be identified in the written authority.
Can officers inspect without notice?
Section 67 does not make a prior taxpayer notice a universal precondition to an inspection. Its safeguard is the senior officer’s recorded statutory basis and written authorisation, not a requirement that the taxpayer first receive a hearing. Whether officers followed the correct authority, location and scope depends on the documents issued and the facts. Keep a copy of the authorisation and record the names, designations and arrival time of the officers.
When a search and seizure is permitted
Search requires a different threshold
Section 67(2) applies when the officer has reasons to believe that goods liable to confiscation, or documents, books or things useful or relevant to proceedings, are secreted in a place. “Secreted” describes the statutory concern that material is concealed or kept away from ordinary discovery; it is not a finding that tax liability has already been adjudicated.
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
The power may follow an inspection, but it can also be exercised independently when the section 67(2) conditions exist. The officer may conduct the search or authorise another central-tax officer in writing. A search therefore requires its own reasons-to-believe analysis and cannot be treated as an automatic second stage of every inspection.
What seizure means
Seizure is custody, not merely viewing or copying. Officers may take possession of goods, documents, books or other things that meet the statutory relevance or confiscation test. If goods cannot practicably be removed, section 67 permits an order preventing the owner or custodian from removing or dealing with them without permission. The goods remain physically where they are, but the prohibition protects their evidentiary status.
Authorisation, forms and custody under Rule 139
Rule 139 of the CGST Rules supplies the paperwork for section 67 actions. The proper officer uses FORM GST INS-01 to authorise a subordinate officer to conduct inspection or search and, where applicable, seizure. When goods, documents, books or things are liable to seizure under section 67(2), the seizure order is made in FORM GST INS-02. The rule permits custody of seized goods to be entrusted to the owner or custodian for safe upkeep, subject to the written restriction against removing or dealing with them.
Where taking goods into physical custody is impracticable, FORM GST INS-03 records the prohibition order. Ask for copies of the relevant forms, the inventory or description of items, and any acknowledgement of documents handed over. The current rule text and forms are available in the CBIC’s CGST Rules publication. A 2017 CBIC taxpayer-services flyer explains the exceptional nature of these powers, but the Act and current rules control if wording has changed; consult the flyer only as explanatory material.
Safeguards for books, documents and goods
Retention and copies
Seized documents, books or things may be retained only for as long as necessary for examination, inquiry or proceedings. A person from whom records were seized may make copies or extracts in the authorised officer’s presence at the place and time indicated. The proper officer can refuse copying when the officer considers it prejudicial to the investigation. Request the opportunity in writing and identify the records needed for statutory filings, audits, payroll or business continuity.
Return of records not relied upon
Documents, books or things not relied on for a notice must be returned within a period not exceeding 30 days from the date that notice is issued. This is a deadline tied to the notice and to whether the material is relied upon—not a promise that every seized record will be back within 30 days of the search.
Notice and return of seized goods
If no notice concerning seized goods is given within six months of seizure, the goods must be returned. The proper officer may extend that period by up to a further six months, but reasons for the extension must be recorded in writing. Keep the seizure date, inventory and any extension order together so the statutory period can be checked accurately.
Quick wins for a faster PC:
Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →Criminal-procedure rules
Section 67(10) applies criminal-procedure search-and-seizure provisions “so far as may be,” subject to the modification stated in the GST law. That wording does not mean that every general criminal-procedure rule operates identically in every GST setting. The precise statutory text, the authorisation and the circumstances of the search determine which safeguards are relevant.
Rank #4
Can officers seize books or stock?
They can seize books, documents, electronic records or other things only when the section 67(2) reasons-to-believe threshold—usefulness or relevance to proceedings—is met. Goods may be seized when liable to confiscation. Officers should describe the items and provide the applicable seizure documentation. During the visit, do not destroy, hide, move or alter records; instead, note objections on the inventory or acknowledgement and seek professional legal assistance promptly.
Where stock is too bulky, perishable or otherwise impracticable to remove, the prohibition route in section 67 and FORM GST INS-03 can restrict movement without physical removal. Breaching that restriction can create additional legal risk, so obtain written permission before dealing with the goods.
Inspection of goods in transit is a separate power
Section 68 concerns goods moving in a conveyance. The government may require prescribed documents or devices, and an officer intercepting a conveyance may require them and inspect the goods. This transit-inspection authority is not the premises-based inspection, search and seizure power in section 67. A roadside document check should therefore not be described as a section 67 search unless the facts and paperwork show that a section 67 power was invoked.
Windows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallCrashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteCan GST officers make a taxpayer pay during a search?
A search or inspection does not itself establish a final tax demand. CBIC’s Instruction 01/2022-23, dated 25 May 2022, states: Therefore, there may not be any circumstance necessitating ‘recovery’ of tax dues during the course of search or inspection or investigation proceedings.
The instruction distinguishes recovery through the legal process—including notice and adjudication where required—from a taxpayer’s voluntary payment of a liability the taxpayer or officer has ascertained. It directs that complaints of force or coercion be investigated and says disciplinary action may follow wrongdoing. The instruction is listed by CBIC at its circulars and instructions page.
Best Value
- It can be a gift option
- Comes with secure packaging
- Helpful in various ways
In Radhika Agarwal v. Union of India, 2025 INSC 272 (27 February 2025), the Supreme Court discussed this instruction against allegations that taxpayers were compelled to admit liability and pay under threat of arrest. The judgment should not be read as a blanket rule that every payment made during an investigation is invalid. The key distinction is between a genuinely voluntary deposit and an amount extracted as coercive recovery before the legally required determination. Read the judgment at the Supreme Court of India.
What to do when officers arrive
- Verify authority: Ask politely for the officers’ names, designations, identification and the written INS-01 or other authorisation. Note which premises and statutory power it covers.
- Provide access without obstructing: Designate a responsible employee, arrange a secure workspace and preserve CCTV, server and accounting records. Do not delete, conceal or move material.
- Track the inventory: Read each description, quantity, device identifier and document range. Record discrepancies or damaged items before signing; request a copy of the signed inventory.
- Protect continuity: Request copies or extracts under section 67 where permitted, especially for filings, payroll, safety and operational records. Ask that any refusal to copy be noted with its reason.
- Control prohibited goods: If FORM GST INS-03 or another restriction is issued, isolate the goods and obtain written permission before moving, selling, processing or otherwise dealing with them.
- Monitor deadlines: Calendar the six-month goods-notice period, any written extension, and the 30-day maximum for non-relied-upon records after notice issue.
- Separate payment from pressure: If a deposit is proposed, obtain a written calculation, basis and acknowledgement. Record that any payment is voluntary only if that reflects the facts, and seek independent tax counsel where arrest threats or coercion are alleged.
Questions taxpayers commonly ask
Is inspection the same as search?
No. Inspection under section 67(1) examines specified premises on listed tax-evasion grounds. Search under section 67(2) requires reasons to believe that confiscable goods or relevant material are secreted in a place. Seizure is a further act of taking custody or prohibiting dealings.
How long can GST keep seized documents?
Only as long as necessary for examination, inquiry or proceedings. Material not relied upon for a notice must be returned within no more than 30 days after the notice is issued, while material relied upon may be retained as legally necessary.
Do these 3 things before closing this tab:
1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsWhat if seized goods are not returned?
Check whether a notice was issued within six months and whether a written extension of up to six additional months states reasons. The statutory period concerns goods; documents follow the separate retention and return rules.
Does a payment during a search prove I owe the tax?
No. A payment may be voluntary, but a search is not a final adjudication. CBIC’s 2022 instruction rejects recovery during search, inspection or investigation before the applicable legal process, and the Supreme Court’s 2025 discussion focuses on distinguishing voluntary payment from coercion.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
