Indirect Tax Laws · Inspection, Search, Seizure and Arrest

Power of Arrest under Section 69 of the CGST Act

Updated 5 October 2026 · Fact-checked

Section 69 lets the Commissioner authorise a CGST officer, by order, to arrest a person he has reason to believe committed a Section 132(1) offence in clauses (a) to (d) with tax involved above ₹2 crore. Above ₹5 crore the offence is cognizable and non-bailable under Section 132(4). Otherwise bail follows. You check the offence, the amount, the authority, then the procedure.

Understand Power of Arrest under Section 69

Arrest is the most severe enforcement power in GST. Because it takes away personal liberty, the law does not give it to every officer for every default. Section 69 restricts it to serious, deliberate offences and makes the Commissioner decide.

The starting point is Section 132, which lists punishable offences. Section 69 applies only to offences specified in clauses (a) to (d) of Section 132(1):

(a) supplying goods or services without an invoice, or issuing a false invoice;
(b) issuing an invoice or bill without any supply;
(c) availing input tax credit using such invoices or bills, or without any invoice or bill;
(d) collecting tax but not paying it to the Government beyond three months from the date the payment becomes due.

Even then, the offence must be one punishable under Section 132(1)(i) or Section 132(1)(ii). That means the tax involved exceeds ₹2 crore. If the tax involved is above ₹5 crore, the offence falls under clause (i). If it is above ₹2 crore but not above ₹5 crore, it falls under clause (ii). With tax of ₹2 crore or less, and for other offences, Section 69 does not give a power of arrest.

The key condition is that the Commissioner must have reason to believe the person committed the offence. He must pass an order authorising a named CGST officer to arrest. An officer cannot arrest on his own. The belief must rest on material, not on suspicion alone.

After arrest, two things matter: the safeguards and the bail route. Under Section 132(4), the offences in clauses (a) to (d) of Section 132(1) that are punishable under Section 132(1)(i), that is, where tax involved exceeds ₹5 crore, are cognizable and non-bailable. Under Section 132(5), all other offences under the Act are non-cognizable and bailable. This includes an offence with tax above ₹2 crore up to ₹5 crore. Arrest can be authorised for it, but the person must be released on bail.

Section 69(2) covers the cognizable and non-bailable case. The arrested person must be told the grounds of arrest and produced before a Magistrate within twenty-four hours. Bail is then decided by the court, not by a departmental officer. The arrest provisions of the Criminal Procedure Code apply, so far as may be.

Section 69(3) covers the non-cognizable and bailable case. The person arrested is admitted to bail or, in default of bail, forwarded to the custody of the Magistrate. The Deputy or Assistant Commissioner has, for releasing a person on bail, the same powers as an officer in charge of a police station under the Code of Criminal Procedure.

Do not confuse this with Section 67. Section 67 deals with inspection, search and seizure of places, documents and goods. Section 69 deals with arrest of the person. They can both be used in one case, but each needs its own authority.

Key rules to remember

Who authorises: Arrest order = Commissioner (by order, on reason to believe); arrest made by an authorised CGST officer; A CGST officer cannot arrest without the Commissioner's authorising order.
Offences covered: Section 132(1) clauses (a) to (d) offences punishable under Section 132(1)(i) or (ii) (tax involved above ₹2 crore); Other Section 132 offences do not attract arrest under Section 69.
Amount threshold for arrest: Tax involved > ₹5 crore (arrest possible; cognizable and non-bailable); > ₹2 crore up to ₹5 crore (arrest possible; non-cognizable and bailable); ≤ ₹2 crore (no arrest under Section 69); Tax involved means tax evaded, ITC wrongly availed or utilised, refund wrongly taken, or tax collected and not paid, as the clause requires.
Cognizable and non-bailable (Section 132(4)): Section 132(1) clause (a) to (d) offences punishable under Section 132(1)(i), with tax involved > ₹5 crore; Person must be informed of grounds of arrest and produced before a Magistrate within 24 hours (Section 69(2)). Bail is decided by the court.
Non-cognizable and bailable (Section 132(5)): All other offences under the Act; If the person is arrested under Section 69 (tax above ₹2 crore up to ₹5 crore), he is admitted to bail under Section 69(3). The Deputy or Assistant Commissioner can grant bail with a police station officer's powers.
Section 67 versus Section 69: Section 67 = inspection, search, seizure of places, goods, documents; Section 69 = arrest of person; Different purpose and different authorising officer.

How to solve Power of Arrest under Section 69 questions

Use this order for any case scenario or theory question on arrest under GST. Write the answer in provision, facts, conclusion form.

1Identify the offence from the facts and match it to a clause of Section 132(1): (a) supply without invoice or false invoice, (b) invoice without supply, (c) ITC using such invoices or without any invoice, or (d) tax collected but not paid within three months. If it is none of these, arrest under Section 69 is not available.
2Find the amount involved and test it. Is tax involved above ₹5 crore (Section 132(1)(i)), or above ₹2 crore up to ₹5 crore (Section 132(1)(ii))? If it is ₹2 crore or less, Section 69 arrest is not available.
3Check the authority: has the Commissioner, on reason to believe, passed an order authorising the officer? If not, the arrest is not valid.
4Decide the status of the offence: the clause (a) to (d) offences with tax above ₹5 crore are cognizable and non-bailable under Section 132(4); every other offence is non-cognizable and bailable under Section 132(5).
5Apply the procedure. For a cognizable and non-bailable offence, inform the grounds of arrest and produce the person before a Magistrate within 24 hours per Section 69(2); bail is then decided by the court. For a non-cognizable and bailable offence (tax above ₹2 crore up to ₹5 crore), the arrested person is admitted to bail under Section 69(3), and the Deputy or Assistant Commissioner has a police station officer's bail powers.
6Check the measure of tax involved for the clause: tax evaded, ITC wrongly availed or utilised, refund wrongly taken, or tax collected and not paid.
7Write a clear conclusion that answers the exact question asked: can he be arrested, who authorises, and is he entitled to bail.

Quickest way: Three-gate check: offence, amount, authority

When to use it: Use this for MCQs and short case scenarios where you must say quickly whether arrest is allowed and what follows.

Gate 1: Is it a fake-invoice, wrongful ITC or tax-collected-not-paid offence under clauses (a) to (d) of Section 132(1)? If no, stop: no arrest.
Gate 2: Is tax involved above ₹2 crore? If no, stop: no arrest under Section 69.
Gate 3: Has the Commissioner authorised it by order? If no, arrest is invalid.
Then label. Above ₹5 crore the offence is cognizable and non-bailable (Section 132(4)), so grounds of arrest must be given, the person must be produced before a Magistrate within 24 hours, and bail is for the court. Above ₹2 crore up to ₹5 crore it is non-cognizable and bailable (Section 132(5)), so the person is released on bail under Section 69(3).

Common mistakes in Power of Arrest under Section 69

Saying any GST officer can arrest a defaulter on suspicion.
Students confuse arrest with the wide powers of inspection and summons.
Fix: State that arrest needs the Commissioner's order based on reason to believe, and the arrest is made by the authorised CGST officer.
Treating every GST offence as arrestable.
Students read Section 69 without linking it to Section 132 slabs.
Fix: Link Section 69 to the clause (a) to (d) offences of Section 132(1) punishable under Section 132(1)(i) or (ii) (tax above ₹2 crore). Late filing or minor defaults are not covered.
Saying no arrest is possible when tax involved is ₹5 crore or less.
Students link Section 69 only with the cognizable and non-bailable slab above ₹5 crore.
Fix: Remember the split. Above ₹5 crore: arrest possible, cognizable and non-bailable. Above ₹2 crore up to ₹5 crore: arrest can still be authorised, but the offence is non-cognizable and bailable, so the person gets bail under Section 69(3). ₹2 crore or less: no Section 69 arrest.
Writing that every arrested person must be produced before a Magistrate within 24 hours, and that bail is never available from the department.
Students mix the cognizable and non-bailable rule with the bailable rule.
Fix: Split the answer. Cognizable and non-bailable (Section 69(2)): grounds of arrest, Magistrate within 24 hours, bail decided by the court. Non-cognizable and bailable (Section 69(3)): the person is admitted to bail, and the Deputy or Assistant Commissioner has a police station officer's bail powers.
Mixing up Sections 67 and 69.
Both sit in the same chapter and are often used together in one raid.
Fix: Section 67 acts on places, goods and documents (search and seizure). Section 69 acts on the person (arrest). Name the correct section for each action in your answer.
Concluding without applying the amount to the facts.
Students recite theory and skip the case numbers.
Fix: Always write the amount, state which band it falls in (above ₹5 crore, above ₹2 crore up to ₹5 crore, or ₹2 crore or less), then give the conclusion in one line.

Worked examples

Example 1

Kiran Traders issued invoices of ₹18,00,00,000 without any actual supply of goods, charging GST at 18%. The tax involved is therefore ₹3.24 crore. The Commissioner has reason to believe the offence was committed and has passed an order authorising a CGST Superintendent to arrest the proprietor. Advise whether the arrest under Section 69 is valid and what the bail position is.

Show the solution

Offence: issuing invoices without supply is clause (b) of Section 132(1), so the offence type is covered.
Amount: tax involved is ₹18 crore × 18% = ₹3.24 crore. This is above ₹2 crore but not above ₹5 crore, so the offence is punishable under Section 132(1)(ii) and falls within Section 69.
Authority: the Commissioner's order exists, so the arrest by the authorised officer is valid.
Status: the tax is not above ₹5 crore, so the offence is not covered by Section 132(4). Under Section 132(5) it is non-cognizable and bailable.
Bail: under Section 69(3) the proprietor must be admitted to bail. The Deputy or Assistant Commissioner has, for releasing a person on bail, the same powers as an officer in charge of a police station under the Code of Criminal Procedure.

Answer: The arrest is valid because the Commissioner has authorised it and the tax of ₹3.24 crore is above ₹2 crore. The offence is non-cognizable and bailable, so the proprietor must be released on bail under Section 69(3).

Example 2

Meera Pvt Ltd availed ITC of ₹6.4 crore on invoices issued by suppliers who never supplied goods. The Commissioner has authorised arrest of its director by an order. Another firm, Nova Traders, evaded tax of ₹3.6 crore through a false invoice, and the Commissioner has also authorised arrest of its proprietor by an order. State whether each can be arrested and what safeguards apply.

Show the solution

Meera: wrongful ITC on invoices without supply is an offence under clause (c) of Section 132(1), and ₹6.4 crore is above ₹5 crore, so arrest under Section 69 is available. The Commissioner's order is present.
Status for Meera: the amount is above ₹5 crore, so the offence is cognizable and non-bailable under Section 132(4).
Safeguards for Meera's director: the arresting officer must inform him of the grounds of arrest and produce him before a Magistrate within twenty-four hours under Section 69(2). Bail is then decided by the court, not by a departmental officer.
Nova Traders: a false invoice is clause (a) of Section 132(1). Tax involved of ₹3.6 crore is above ₹2 crore but not above ₹5 crore, so the offence is punishable under Section 132(1)(ii). With the Commissioner's order, arrest is possible.
Status for Nova: the offence is not covered by Section 132(4), so under Section 132(5) it is non-cognizable and bailable. The proprietor is admitted to bail under Section 69(3).

Answer: Meera's director can be arrested. The offence is cognizable and non-bailable, so grounds must be communicated, he must be produced before a Magistrate within 24 hours, and the court decides bail. Nova Traders' proprietor can also be arrested on the Commissioner's order, but the offence is non-cognizable and bailable, so he must be released on bail under Section 69(3).

Exam tips

Write the key numbers in every answer: arrest under Section 69 needs tax involved above ₹2 crore, and the offence is cognizable and non-bailable only above ₹5 crore.
In a case scenario, state the Commissioner's authorisation first. Many MCQs hide the trap in who authorised the arrest.
Keep the answer in provision, facts, conclusion form and finish with a one-line decision.
For differences between Sections 67 and 69, use two columns in your head: place, goods and documents versus person, and say who authorises each.
Cite Section 132(4) for the cognizable and non-bailable offences and Section 132(5) for all others. Describe other details in words if you are not sure of the sub-section.

Practice questions from Inspection, Search, Seizure and Arrest

Power of Arrest under Section 69 in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CS ProfessionalPower to Arrest and Summon

Power of Arrest under Section 69: frequently asked questions

When can a person be arrested under GST?

When the Commissioner has reason to believe the person committed an offence in clauses (a) to (d) of Section 132(1), such as a fake invoice or wrongful ITC offence, punishable under Section 132(1)(i) or (ii) with tax involved above ₹2 crore, and has authorised the arrest by order. Without that order, a CGST officer cannot arrest.

Which GST offences are cognizable and non-bailable?

Under Section 132(4), the offences in clauses (a) to (d) of Section 132(1) that are punishable under Section 132(1)(i), where the tax involved exceeds ₹5 crore. The arrested person must be informed of the grounds and produced before a Magistrate within 24 hours under Section 69(2), and bail is decided by the court.

Which GST offences are bailable?

Under Section 132(5), all other offences under the Act are non-cognizable and bailable. This includes clause (a) to (d) offences where the tax involved is above ₹2 crore up to ₹5 crore. Arrest can be authorised for these, but the person is admitted to bail under Section 69(3). The Deputy or Assistant Commissioner can grant bail with the powers of a police station officer.

What is the difference between Section 67 and Section 69 of the CGST Act?

Section 67 allows inspection, search and seizure of places, goods and documents. Section 69 allows arrest of a person for specified serious offences, and the Commissioner must authorise it by order.