GST Inspection, Search and Seizure Under Section 67: INS-01, the Panchnama and Your Rights

Under section 67 of the CGST Act, an officer not below Joint Commissioner can authorise, in Form GST INS-01, an inspection of your business, and a search and seizure where goods liable to confiscation or useful documents are believed to be hidden. Anything seized is listed in an INS-02 order and an inventory you sign; you can copy seized documents, documents not relied on must come back within 30 days of the notice, and goods must come back if no notice issues within six months (extendable by six). CBIC's own instructions say there is no tax recovery during a search: any payment is voluntary, through DRC-03.

Sources checked: 21 October 2026

Facts checked on 21 October 2026 against sections 67 and 69 of the CGST Act and rules 139 to 141 of the CGST Rules on the CBIC tax information portal, CBIC Instructions 01/2020-21, 01/2022-23, 02/2022-23 and 01/2025-GST, and the GST Council's press release of 8 October 2026.

Key facts

Point	What applies	Where it comes from
Who authorises	A proper officer not below Joint Commissioner, in writing	Section 67(1); rule 139(1)
Authorisation form	FORM GST INS-01, with a DIN, for the premises named in it only	Rule 139(1); Instruction 01/2020-21
Seizure order	INS-02, with an inventory signed by the person	Rule 139(2), (5)
If seizure is not practicable	Prohibition order in INS-03	Section 67(2) proviso; rule 139(4)
Recovery during search	None; voluntary payment through DRC-03 only	Instruction 01/2022-23
Copies of seized documents	Allowed in an officer's presence, unless it would prejudice the investigation	Section 67(5)
Return of documents	Those not relied on: within 30 days of the notice	Section 67(3)
Return of goods	If no notice within 6 months of seizure (extendable by up to 6 months)	Section 67(7)
Provisional release	Bond in INS-04 plus security; or on payment of tax, interest and penalty	Section 67(6); rule 140
Perishable or hazardous goods	Released in INS-05 on payment of the lower of market price or tax, interest and penalty	Rule 141

When can GST officers inspect or search my business?

Inspection under section 67(1) needs a written authorisation from an officer not below Joint Commissioner, where there is reason to believe one of these:

• suppression of transactions or of stock;
• excess input tax credit claimed;
• another contravention aimed at evading tax;
• a transporter or warehouse keeper holding goods that escaped tax.

Search and seizure under section 67(2) applies where goods liable to confiscation, or documents or things useful for the proceedings, are hidden. If seizing them is not practicable, the officer may serve a prohibition order instead, in Form INS-03 (rule 139(4)). An inspection does not always lead to a search, and a search does not always lead to a seizure.

What should the officers show me when they arrive?

CBIC Instruction 01/2020-21 (2 February 2021) sets out how a search should be run. Use it as your checklist:

• The authorisation: INS-01, with a DIN, issued after reasons were recorded on file. It covers only the premises named in it. It is shown to the person in charge, who signs it with the date and time.
• Identity: officers show their identity cards.
• Personal search: officers and witnesses offer themselves for a personal search before and after the search.
• Witnesses: two or more independent witnesses are present.
• Residences: a woman officer must be in the team when a residence is searched.
• Occupants: children may go to school after their bags are checked; a woman who by custom does not appear in public may withdraw before the team enters; officers leave once the panchnama is complete.

What is a panchnama, and should I sign it?

The panchnama is the record of the search. Under Instruction 01/2020-21 it records the start and end times and lists everything taken; every page is signed and a copy is given to the person in charge. If the person refuses to sign, it is pasted in the premises in front of the witnesses. Read it before you sign and check that the list of items matches what was taken.

Statements recorded during the search are signed on every page by you and by the officer. Before the team leaves, ask for copies of the INS-01, the panchnama and the INS-02 inventory.

Do I have to pay tax during a search?

No. CBIC Instruction 01/2022-23 (25 May 2022) says there is no "recovery" during a search, inspection or investigation; recovery under section 79 needs an adjudication order. A taxpayer may still choose to pay voluntarily through Form DRC-03, and officers must tell the taxpayer of that option. The instruction also says complaints of force or coercion are to be enquired into, with disciplinary action where warranted. Whether paying voluntarily at that stage makes sense for you is a question to put to our expert team, not one to settle under pressure.

What are my rights after a seizure?

• Copies: you may make copies or take extracts of seized documents in an officer's presence, unless that would prejudice the investigation (section 67(5)).
• Documents back: documents not relied on in the notice must be returned within 30 days of the notice (section 67(3)).
• Goods back: if no notice is issued within six months of seizure, the goods must be returned; the period may be extended by up to six months on sufficient cause (section 67(7)).
• Criminal procedure: the search provisions of the Code of Criminal Procedure apply, with "Commissioner" read for "Magistrate" in its section 165(5) (section 67(10)).

How do I get seized goods released?

Section 67(6) allows provisional release on a bond and security, or on payment of the applicable tax, interest and penalty. Under rule 140 the bond is in Form INS-04 for the value of the goods, with security from a bank equal to the tax, interest and penalty; if the goods are not produced when required, that security is encashed. Perishable or hazardous goods are released forthwith in INS-05 on payment of the lower of their market price or the tax, interest and penalty; otherwise the officer may dispose of them (rule 141).

What about arrest under section 69?

Arrest is separate from a search and has its own conditions:

• The statute: the Commissioner may authorise arrest where he has reason to believe a person committed an offence under section 132(1)(a) to (d) punishable under section 132(1)(i) or (ii), or under section 132(2) (section 69(1)). For an offence under section 132(5), the person must be told the grounds and produced before a Magistrate within 24 hours (section 69(2)). Offences under section 132(4) are bailable (section 69(3)).
• CBIC Instruction 02/2022-23: the reasons to believe must rest on credible material; arrest must not be routine; it is approved only where intent to evade, wrongful credit or a fraudulent refund is evident; and there should be no arrest in technical cases such as a difference of opinion on the law. The arrest memo carries a DIN, a nominated person is informed immediately, and a woman is arrested only by a woman officer.
• Instruction 01/2025-GST (13 January 2025): the grounds of arrest must be explained and given in writing as an annexure to the arrest memo, with the person's acknowledgement.
• Pending change, not law: the 57th GST Council meeting of 8 October 2026 recommended withdrawing arrest powers by omitting section 69, raising the prosecution threshold from ₹1 crore to ₹5 crore and narrowing section 132(1). These are recommendations only; they need an amendment of the Act, and the Finance Act 2026 does not make it. Until an amending Act is notified, section 69 stands.

What should I keep ready?

• Registration certificate.
• Books of account and stock records.
• Invoices and e-way bills.
• Returns filed.
• A person who knows the records and can answer factual questions.

Getting help

Representation during a search or an arrest needs an independent advocate; if you ask, we can share the contact details of more than one independent advocate through our legal help page, or you can use your own. For the tax and records side, our GST audit and litigation support team can help you reconcile books, stock and returns after a search. If officers follow up with a summons, see our guide to GST summons under section 70; our notice decoder explains common GST notices in plain language. To ask our expert team about your case, book a consultation.