Section 67 and section 71 of India’s Central Goods and Services Tax Act, 2017 serve different purposes. Section 67 sets out inspection, search and seizure powers tied to specified reasons to believe; a search under section 67(2) additionally requires reason to believe that relevant goods or records are secreted in a place. Section 71 authorizes access to a registered person’s business premises for audit, scrutiny, verification and revenue checks. It does not, by itself, grant section 67’s search-and-seizure power.
The distinction matters if officers arrive at a business or request records: identify the power being exercised, its stated purpose and authorization, and the records or property within its scope. The provisions discussed below are in the central GST Act; check the operative law and any applicable State GST provisions for the jurisdiction involved.
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How section 67 differs from section 71
| Issue | Section 67: inspection, search and seizure | Section 71: access |
|---|---|---|
| Purpose | Inspection addresses specified suspected tax-evasion circumstances. Search and seizure target goods or records believed to be secreted and relevant to proceedings. | Access supports audit, scrutiny, verification and checks necessary to safeguard revenue. |
| Threshold | Reasons to believe are required. For a search and seizure under subsection (2), the officer must also have reason to believe relevant goods or records are secreted in a place. | The text authorizes access for its stated purposes; it does not set out section 67’s suspicion tests. |
| Authorization | A proper officer not below Joint Commissioner rank may authorize another central-tax officer in writing under subsections (1) and (2). The qualifying officer may also act personally. | The accessing officer must be authorized by a proper officer not below Joint Commissioner rank. |
| Scope | Inspection of specified business or other places; search for and seizure of goods, documents, books or things. | Access to a registered person’s place of business and inspection of accounts, documents, computers, programs, software and other things available there. |
| Records and goods | Section 67 provides for seizure and sets out retention, copying, return and provisional-release protections. | Specified records must be produced on demand within fifteen working days, unless a further period is allowed. |
| Key safeguards | Written authorization and statutory belief thresholds, plus protections in subsections (3)–(10) and prescribed forms. | Authorized, purpose-limited access and a defined record-production list and period. |
This is a summary of the statutory wording, not a separate legal test. In practical terms, a section 71 access exercise is different from the more intrusive search-and-seizure process under section 67.
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What section 67 permits
Inspection under section 67(1)
A proper officer not below Joint Commissioner rank must have reasons to believe that one of the circumstances listed in subsection (1) applies. These include a taxable person suppressing a transaction or stock, claiming input tax credit beyond entitlement, or contravening the Act or rules to evade tax. The provision also covers suspected untaxed goods, or evasion-prone recordkeeping, at a transporter’s premises or a warehouse, godown or other place controlled by a person involved in storing or keeping goods.
The qualifying officer may inspect the relevant places personally or authorize another central-tax officer in writing to do so. Inspection under subsection (1) is not the same thing as the separate search-and-seizure power in subsection (2).
Search and seizure under section 67(2)
Following inspection or otherwise, the 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, are secreted in a place. The officer may search and seize personally or authorize another central-tax officer in writing.
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If seizure of goods is impracticable, the officer may make an order prohibiting anyone from dealing with them without permission. Seized documents may be retained only for as long as necessary for examination or proceedings.
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The Act provides several protections around seized material and goods:
- Copies of documents: A person from whom documents, books or things are seized may take copies or extracts in the proper officer’s presence, unless the officer considers this likely to prejudice the investigation.
- Return of material not relied on: Documents, books or things not relied on for the notice must be returned within thirty days of its issue.
- Provisional release of goods: Seized goods may be provisionally released on the statutory terms.
- Return of seized goods if no notice is issued: If no notice concerning the goods is issued within six months, the goods must be returned. The period may be extended by up to a further six months if sufficient cause is shown.
- Search procedure: Section 67 applies the Code of Criminal Procedure provisions on search and seizure so far as may be, with the statutory modification stated in the Act.
Rule 139 of the Central Goods and Services Tax Rules, 2017 prescribes Form GST INS-01 for authorization and Form GST INS-02 for a seizure order. It also requires an inventory describing seized goods or records, with identifying details where applicable, signed by the person from whom they are seized. Rules 140 and 141 address provisional release and perishable or hazardous seized goods. The cited CBIC-hosted rules compilation originates in 2017; its current status should be checked against amendments.
What section 71 access covers
Section 71(1) allows an officer authorized by a proper officer not below Joint Commissioner rank to access a registered person’s place of business for audit, scrutiny, verification and checks necessary to safeguard revenue. The officer may inspect books of account, documents, computers, computer programs and software (whether installed on a computer or otherwise), and other things available at the place that the officer may require.
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Section 71(2) concerns records that must be made available on demand by the person in charge of the place of business. The specified material includes records declared as prescribed, a trial balance, audited annual financial statements where required, applicable cost-audit and income-tax audit reports, and other relevant records. They must be produced within fifteen working days of demand, or within a further period allowed by the specified officer, audit party or nominated accountant.
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What to clarify when officers attend or request records
- Ask which provision is being used. A request for access and records under section 71 is not automatically a section 67 search.
- Identify the authorized officer and purpose. Sections 67 and 71 both involve authorization by a proper officer not below Joint Commissioner rank; section 67(1) and (2) also provide for written authorization of another central-tax officer.
- For a section 67 search, note the stated basis and scope. Subsection (2) requires reasons to believe that relevant goods or records are secreted in a place, in addition to the statutory relevance or confiscability conditions.
- For a section 71 demand, track the records and deadline. The specified records are due within fifteen working days of demand unless a further period is allowed.
- If items are seized, ask for the prescribed documentation. Rule 139 provides for a seizure order and an inventory signed by the person from whom the goods or records are seized.
These are statutory distinctions, not a substitute for advice on a particular matter. The CBIC circular index lists Instruction No. 01/2022-23 [GST-Investigation], dated 25 May 2022, on deposit of tax during search, inspection or investigation; the index entry alone does not establish the instruction’s detailed directions.
Sources and legal scope
The statutory provisions and rules cited are available in CBIC-hosted materials: Central Goods and Services Tax Act, 2017, sections 67 and 71; Central Goods and Services Tax Rules, 2017, Chapter XVII, rules 139–141; and the CBIC circulars and orders index. The statutory periods described here are periods in the cited Act, not study findings. The discussion concerns central GST law; the operative text for a particular date and jurisdiction, including applicable State GST law and later amendments or binding decisions, should be confirmed.
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