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Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Under India’s CGST Act, inspection, search, seizure and arrest are distinct enforcement powers—not interchangeable steps. Inspection under section 67(1) allows authorised access to specified premises; search and seizure under section 67(2) require a separate basis concerning goods or records believed to be secreted; and arrest under section 69 is tied to specified section 132 offences and their punishment conditions. The provision invoked, the authority for the action and what happens to people, goods and records all matter.
How the four powers differ
The central statute is the Central Goods and Services Tax Act, 2017 (CGST Act). State and Union Territory GST counterparts may also be relevant. The main distinction is what the power targets and what statutory condition must be met.
| Power | What it targets | Broad statutory basis | What it enables |
|---|---|---|---|
| Inspection, section 67(1) | Specified business premises, transporters’ premises, or a warehouse or godown | A proper officer not below Joint Commissioner rank has reasons to believe specified evasion-related facts exist and gives written authorisation | Access to inspect the relevant place |
| Search and seizure, section 67(2) | A place where relevant goods or records are believed to be secreted | A proper officer not below Joint Commissioner rank has reasons to believe goods liable to confiscation or relevant material is secreted there | Search and seizure, or in specified circumstances restraint on dealing with goods |
| Arrest, section 69 | A person | The Commissioner has reasons to believe the person committed a specified section 132 offence meeting the punishment conditions, and authorises arrest by order | Arrest subject to offence-specific procedure and applicable law |
| Transit inspection, section 68 | Goods in movement and related conveyance material | Interception under the statutory scheme | Require documents or devices and inspect goods |
| Summons, section 70 | A person, evidence or documents | A proper officer considers attendance or production necessary for an inquiry | Summon attendance, evidence or material |
| Business-premises access, section 71 | Books, records, computers and related material at business premises | Authorisation by a proper officer not below Joint Commissioner rank for specified audit, scrutiny, verification or checks | Access for those specified purposes |
The CBIC’s GST FAQ describes inspection as “a softer provision than search,” explaining its access purpose. That is explanatory guidance; the Act and applicable rules are the controlling legal text.
What an inspection under section 67(1) allows
For inspection, the proper officer must be not below the rank of Joint Commissioner and must have “reasons to believe” one of the conditions listed in section 67(1) applies. These include suppression of a supply transaction or stock, an excess input tax credit claim, or a contravention of the Act or rules intended to evade tax. The provision also covers specified circumstances involving transporters and warehouse or godown operators where goods may have escaped tax or goods or records are kept in a way likely to cause evasion.
The proper officer may issue written authorisation for another central tax officer to inspect the relevant place. Inspection is not, by itself, the search-and-seizure authority in section 67(2), and it does not itself establish a basis for arrest under section 69.
When search and seizure under section 67(2) apply
Section 67(2) has a separate trigger: a proper officer not below Joint Commissioner rank must have reasons to believe that goods liable to confiscation, or documents, books or things useful or relevant to proceedings under the Act, are secreted in a place. The officer may conduct the search and seizure personally or authorise another central tax officer in writing.
Rank #2
Seizure and restraint on goods
If goods cannot practicably be seized, the provision allows an order restraining their owner or custodian from moving or otherwise dealing with them without permission. A restraint is not the same thing as taking physical possession, though both can restrict what the business may do with the goods.
Handling seized documents and records
- Documents seized should be retained only as long as necessary for examination or proceedings.
- Documents not relied on for a notice are to be returned within 30 days of the notice being issued.
- A person whose documents are seized may make copies or extracts in the presence of an authorised officer, unless allowing this may prejudice the investigation.
Release and notice periods for seized goods
Goods may be provisionally released against a bond and security, or on payment of applicable amounts. If no notice is given within six months of seizure of goods, the Act provides for their return; that period may be extended by up to a further six months. These are statutory periods stated in the Act text and should be checked against the operative law for the relevant case.
Rank #3
The CGST Rules identify GST INS-01 as the authorisation form for inspection, search and seizure, and GST INS-02 as the seizure order form. Businesses should verify the current rules and forms before relying on a particular form or procedure.
When arrest under section 69 is possible
Arrest is a power concerning a person, not a means of inspecting a premises or taking goods and records. Under section 69, the Commissioner may, by order, authorise a central tax officer to arrest a person where the Commissioner has reasons to believe that the person committed one of the specified offences under section 132 and the statutory punishment conditions are met.
Rank #4
The Act sets out different arrest-related procedures by offence category. For an arrest in the specified section 132(5) category, the authorised officer must inform the person of the grounds of arrest and produce them before a Magistrate within 24 hours. The Act also provides for bail treatment by offence category, subject to applicable criminal procedure law. Those rules should not be generalised to every GST offence.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to assess the action taking place
When officers attend a business or contact an individual, compare the action with the legal basis stated for it. These details can help distinguish an inspection from a search, a seizure from a restraint, or a summons from an arrest.
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- Provision invoked: identify whether the document refers to section 67(1), 67(2), 68, 69, 70 or 71.
- Authority: note the authorising officer, required rank and any written authorisation or order.
- Stated basis and scope: identify the statutory reason or offence stated, and the premises, person, goods or records covered.
- Nature of the action: distinguish access to inspect, a search, taking or controlling goods or records, a summons, and an action directed at a person.
- Follow-up records: keep copies of notices and orders and a record of material produced or taken, including any receipt or inventory provided.
Section 67 addresses written authorisation and, for specified seizures, processes involving receipts, copies or extracts and release or return. The exact rights and remedies in a live matter depend on the documents, facts and applicable law; a business facing enforcement should promptly consult a qualified GST lawyer or tax professional rather than obstruct officials or assume a particular outcome.
Which law and guidance to check
The CBIC-hosted CGST Act text sets out sections 67–71, while the CBIC FAQ supplies explanatory context. CBIC’s circular index lists guidance dated 17 August 2022 titled “Guidelines for Arrest and Bail in Relation to Offences Punishable under the CGST Act, 2017,” as well as search-operation instructions dated 2 February 2021. Such guidance is relevant context, but it does not establish that no later amendment, notification, circular or judgment affects a particular case.
The Act text used here does not specify a consolidated amendment cut-off date. This is a general explanation of the central CGST Act, not advice about an individual enforcement action. Before relying on any provision or procedure, check the operative central and relevant State or Union Territory law, current rules and forms, later notifications and circulars, and applicable judgments.
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