Inspection, search and seizure · Section 67
GST inspection, search and seizure: your response kit
If officers arrive with an authorisation, stay calm, ask to see it and keep your own record of what is taken. Below is what the law and CBIC procedure say.
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What it is
A proper officer not below the rank of Joint Commissioner may authorise another officer in writing to inspect premises where there is reason to believe there is suppression of transactions or stock, excess ITC claimed, another contravention aimed at evading tax, or a transporter or warehouse keeper holding goods that have escaped tax.
CGST Act, section 67(1) · source listed below
Where goods liable to confiscation, or documents or things useful to proceedings, are hidden, the officer may search for and seize them. If seizure is not practicable, an order of prohibition may be served on the owner or custodian instead.
CGST Act, section 67(2) and its provisos · source listed below
The authorisation is FORM GST INS-01, issued by an officer not below Joint Commissioner. The seizure order is INS-02 and the order of prohibition is INS-03. The seizing officer prepares an inventory and gets it signed by the person from whom items are seized.
CGST Rules, rule 139(1), (2), (4) and (5) · source listed below
An officer may also make test purchases of goods or services to check the issue of tax invoices.
CGST Act, section 67(12) · source listed below
The CrPC search provisions apply, with Commissioner read for Magistrate in CrPC section 165(5). The CBIC page still cites the CrPC; the corresponding provision of the new procedural code is to be confirmed by our expert team.
CGST Act, section 67(10) · source listed below
Your rights
You may make copies of, or take extracts from, seized documents in the presence of an authorised officer, unless that would prejudice the investigation.
CGST Act, section 67(5) · source listed below
Documents not relied on for the notice must be returned within 30 days of the issue of the notice. Seized books may be retained only as long as necessary for their examination.
CGST Act, section 67(3) and the second proviso to section 67(2) · source listed below
Seized goods are returned if no notice is given within six months of the seizure; the officer may extend this by up to six months on sufficient cause. The text speaks of goods seized; whether it also covers goods under a prohibition order (INS-03) is to be confirmed by our expert team.
CGST Act, section 67(7) · source listed below
Seized goods may be released provisionally on a bond and security, or on payment of tax, interest and penalty. The bond is in INS-04 for the value of the goods, with a bank guarantee for the tax, interest and penalty; the bank guarantee is encashed if the goods are not produced when required.
CGST Act, section 67(6); CGST Rules, rule 140(1)-(2) · sources listed below
Perishable or hazardous goods are released forthwith in INS-05 on proof of payment of the lower of their market price and the tax, interest and penalty payable. If it is not paid, the proper officer may dispose of the goods.
CGST Rules, rule 141(1)-(2) · source listed below
There is no recovery during a search, inspection or investigation; recovery under section 79 needs an adjudication order. You may still pay voluntarily through DRC-03, and officers must tell you of that option. Complaints of force or coercion are to be enquired into, with disciplinary action where warranted.
CBIC Instruction 01/2022-23 · source listed below
The authorisation records reasons on file and carries a DIN. It covers only the premises named in it and is shown to the person in charge, who signs it with the date and time. Officers show their identity cards, and officers and witnesses offer a personal search before and after the search. Two or more independent witnesses are present, and a lady officer must be in the team for the search of a residence.
CBIC Instruction 01/2020-21, para 2 · source listed below
The panchnama 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 before the witnesses. Every page of a statement is signed by the person and by the officer.
CBIC Instruction 01/2020-21, para 2 · source listed below
Children may go to school after their bags are checked, and a woman who by custom does not appear in public may withdraw before the team enters. Officers leave once the panchnama is complete.
CBIC Instruction 01/2020-21, para 2 · source listed below
Arrest is possible only within section 69: the Commissioner may authorise it where he has reason to believe a person committed a specified offence under section 132. For an offence under section 132(5), the person must be told the grounds and produced before a Magistrate within 24 hours. Offences under section 132(4) are bailable.
CGST Act, section 69(1)-(3) · source listed below
CBIC directs that arrest must not be routine, that reasons are recorded on file, that there should be no arrest in technical cases such as a difference of opinion on interpretation of law, that a nominated person is informed immediately, and that a woman is arrested only by a woman officer. The grounds of arrest must be explained and also given in writing as an annexure to the arrest memo, with the person's acknowledgement.
CBIC Instruction 02/2022-23, paras 3-4, as amended by Instruction 01/2025-GST · sources listed below
Your duties
The owner or custodian of goods under an order of prohibition must not remove, part with or otherwise deal with them without the permission of the officer.
CGST Act, section 67(2) first proviso; CGST Rules, rule 139(4) · sources listed below
If goods are released on a bond, they must be produced when required, failing which the bank guarantee is encashed.
CGST Rules, rule 140 · source listed below
What to do now
- Ask to see the authorisation (INS-01) and check it names the premises and carries a DIN. Note the officers present and call our expert team.
- Do not sign a statement or a panchnama without reading every page. Ask for a copy of the INS-01, the panchnama and the INS-02 inventory.
- Check the inventory against what is taken, and sign only what is correct.
- Ask for copies of documents that are seized, which you may take in an officer's presence.
- For goods, ask about provisional release on a bond and bank guarantee (INS-04).
- If an arrest is threatened or made, ask for the grounds in writing and speak to an independent advocate at once.
These steps are practical suggestions from our expert team, not statements of law.
Documents to keep ready
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Key time limits
| For | Time limit | Provision |
|---|---|---|
| Documents not relied on | Time limitReturned within 30 days of the issue of the notice | Provision and sourceCGST Act, section 67(3) |
| Seized goods | Time limitReturned if no notice is given within 6 months of the seizure; extendable by up to 6 months on sufficient cause | Provision and sourceCGST Act, section 67(7) |
| Arrest under section 132(5) | Time limitGrounds told and the person produced before a Magistrate within 24 hours | Provision and sourceCGST Act, section 69(2) |
| Time to respond to INS-02 or INS-03 | Time limitNone fixed in the law; the remedies are copies, provisional release and the periods above | Provision and sourceCGST Rules, rule 139(2) and (4); CGST Act, section 67 |
The date or period stated in your own notice or order always applies.
What can happen next
- Authorisation for inspection or searchThe authorisation shown at the start.
- Order of seizureWith the inventory; INS-04 is the bond for provisional release.
- Order of prohibitionGoods stay with the owner or custodian and must not be dealt with.
- Release of perishable or hazardous goodsOn payment of the lower of market price and the dues.
- Pre-notice intimation of liabilityTax found short may be communicated first in DRC-01A (optional).
- Show cause noticeMaterial seized is used for a show cause notice under Section 73, 74 or 74A.
Read the full guide: GST Inspection, Search and Seizure Under Section 67: INS-01, the Panchnama and Your Rights
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Recommended, not yet law
The 57th GST Council (8 October 2026) recommended omitting section 69 (the power to arrest), raising the prosecution threshold from ₹1 crore to ₹5 crore and narrowing section 132(1). These are recommendations, not yet law: they need an amendment of the Act.
Press release of the 57th GST Council meeting, para B3-11 · source listed below
Frequently asked questions
Who can authorise a GST search of my business?
A proper officer not below the rank of Joint Commissioner, in writing, in Form GST INS-01. CBIC Instruction 01/2020-21 adds that the reasons are recorded on file, the authorisation carries a DIN and it covers only the premises named in it.
Do I have to pay tax on the spot during a GST search?
No. CBIC Instruction 01/2022-23 says there is no recovery during a search, inspection or investigation; recovery under section 79 needs an adjudication order. You may still pay voluntarily through Form DRC-03, and officers must tell you of that option.
How long can the department keep seized goods and documents?
Documents not relied on in the notice must be returned within 30 days of the notice. If no notice is issued within six months of seizing goods, the goods must be returned; that period can be extended by up to six months on sufficient cause.
Can I get copies of the documents that were seized?
Yes. Section 67(5) lets you make copies or take extracts of seized documents in an officer's presence, unless that would prejudice the investigation. Also ask for a copy of the INS-01, the panchnama and the INS-02 inventory.
Can I get my seized goods released before the case ends?
Seized goods may be released provisionally on a bond and security, or on payment of tax, interest and penalty. The bond is in INS-04 for the value of the goods, with a bank guarantee for the tax, interest and penalty. Perishable or hazardous goods are released in INS-05 on payment of the lower of their market price and the dues.
Can GST officers arrest me during a search?
Only within section 69: the Commissioner may authorise arrest where he has reason to believe a person committed specified offences under section 132. CBIC says arrest must not be routine or used in technical cases, and the grounds of arrest must be given in writing. The 57th GST Council recommended omitting section 69 on 8 October 2026, but that is a recommendation, not yet law.
Official sources
- CGST Act 2017, section 67 (inspection, search and seizure)Read on 24 October 2026
- CGST Rules 2017, rule 139 (inspection, search and seizure: INS-01, INS-02, INS-03)Read on 24 October 2026
- CGST Rules 2017, rule 140 (bond and security for release of seized goods: INS-04)Read on 24 October 2026
- CGST Rules 2017, rule 141 (disposal of perishable and hazardous goods: INS-05)Read on 24 October 2026
- CBIC Instruction No. 01/2022-23 [GST-Investigation], 25 May 2022: no recovery during a search; voluntary payment in DRC-03Read on 21 October 2026
- CBIC Instruction No. 01/2020-21 [GST-Investigation], 2 February 2021: search procedureRead on 21 October 2026
- CGST Act 2017, section 69 (power to arrest)Read on 21 October 2026
- CBIC Instruction No. 02/2022-23 (GST-Investigation), 17 August 2022: guidelines for arrest and bailRead on 21 October 2026
- CBIC Instruction No. 01/2025-GST, 13 January 2025: amendment to Instruction 02/2022-23 (grounds of arrest in writing)Read on 21 October 2026
- Recommendations of the 57th Meeting of the GST Council, 8 October 2026 (press release)Read on 21 October 2026
General information from the Acts, Rules, circulars and instructions named beside each point, not legal advice. The dates and periods stated in your own notice or order always apply. Our expert team can read your documents with you.