Indirect Tax Laws and Practice · Inspection, Search, Seizure, Arrest and Prosecution

Inspection, Search and Seizure under GST Section 67

Updated 11 October 2026 · Fact-checked

Section 67 of the CGST Act lets a proper officer not below Joint Commissioner, on reasons to believe tax evasion, authorise another central tax officer in writing to inspect premises, or to search and seize goods, documents, books or things. Answer by stating the trigger, the authority, the power used, and the safeguards.

Understand Inspection, Search and Seizure under GST

GST depends on self-assessment. The law therefore gives the department tools to check whether a taxable person is telling the truth. Section 67 is the main tool. It has three stages: inspection, search and seizure.

Inspection is the lightest step. A proper officer not below the rank of Joint Commissioner must have reasons to believe one of two things. First, a taxable person has suppressed a supply or stock, claimed excess input tax credit, or contravened the Act or Rules to evade tax. Second, a transporter, or the owner or operator of a warehouse, godown or any other place, is keeping goods that have escaped tax, or keeps accounts or goods in a way likely to cause evasion. He then authorises in writing another central tax officer to inspect the places of business.

Search and seizure is stronger. The same senior officer, whether or not an inspection was done first, 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 somewhere. He may himself search and seize, or authorise another central tax officer in writing to do so. If goods cannot practicably be seized, he may serve an order that the owner or custodian shall not remove, part with or otherwise deal with them without the officer's previous permission.

The Act also protects the person searched. Seized documents are kept only as long as necessary for examination and inquiry. Documents not relied upon in a notice must be returned within thirty days of issue of the notice. The person may make copies or extracts in the presence of an authorised officer, unless this would prejudice the investigation. Goods can be released provisionally on a bond and security, or on payment of tax, interest and penalty. If no notice is given within six months of seizure, the goods go back to the person, and this can be extended by up to six months for sufficient cause.

State or Union territory tax officers are also authorised as proper officers under Section 6 of the CGST Act and Section 4 of the IGST Act, subject to notified conditions. If a State officer has already started proceedings on a subject matter, the central officer cannot start proceedings on the same matter.

Key rules to remember

Who authorises (Section 67(1) and (2)): Proper officer not below Joint Commissioner → written authorisation → other central tax officer; The belief must be formed by the senior officer. Under sub-section (2) he may also search and seize himself.
Trigger for inspection: Reasons to believe: suppression, excess ITC or contravention to evade tax; or goods escaped tax or accounts kept to cause evasion; Clause (a) covers taxable persons. Clause (b) covers transporters and owners or operators of warehouses, godowns or any other place.
Trigger for search and seizure: Reasons to believe: goods liable to confiscation, or documents, books or things relevant to proceedings, are secreted; May follow an inspection or be done otherwise.
Where seizure is not practicable: Order not to remove, part with or otherwise deal with goods without previous permission; Rule 139(4) prescribes FORM GST INS-03 for this order.
Return of documents (Section 67(3)): Documents not relied upon in the notice → returned within 30 days of issue of notice; Seized documents are otherwise retained only as long as necessary.
Return of goods (Section 67(7)): No notice within 6 months of seizure → goods returned; extension up to a further 6 months for sufficient cause; Maximum period is therefore 12 months. The proper officer grants the extension.
Forms under Rule 139: Authorisation: FORM GST INS-01; Seizure order: FORM GST INS-02; Prohibition order: FORM GST INS-03; Rule 139(5): the seizing officer prepares an inventory and gets it signed by the person from whom items are seized.
Provisional release (Section 67(6)): Bond + security as prescribed, or payment of applicable tax, interest and penalty; Applies to goods seized under sub-section (2).

How to solve Inspection, Search and Seizure under GST questions

Use the same sequence for any case-based question on Section 67. It keeps your answer legally complete and easy for the examiner to mark.

1Identify the person involved: taxable person, transporter, or owner or operator of a warehouse or other place.
2Check the trigger: is there a reason to believe suppression, excess ITC, evasion, or secreted goods, documents, books or things?
3Check the authority: the belief must be of a proper officer not below Joint Commissioner, and the authorisation must be in writing (FORM GST INS-01).
4Name the power exercised: inspection, search and seizure, or a prohibition order where seizure is not practicable.
5Apply the procedure: seizure order in FORM GST INS-02, inventory signed by the person, copies or extracts permitted.
6Apply the safeguards and time limits: 30 days for returning unused documents, six months for notice (extendable by up to six months), provisional release.
7State a clear conclusion on whether the action is valid and what the taxable person can do.

Quickest way: Four-question check

When to use it: Use this for MCQs and for short-note or case questions when time is tight.

Who formed the belief? It must be a Joint Commissioner or above.
Was it in writing? Authorisation to another officer must be written.
What was done? Inspection, search, seizure or prohibition order.
Which clock runs? 30 days for unused documents; 6 months (plus up to 6) for notice after seizure.

Common mistakes in Inspection, Search and Seizure under GST

Saying any GST officer can order a search.
Students remember the officers who do the search, not the officer who forms the belief.
Fix: Write that the proper officer must be not below the rank of Joint Commissioner. He may authorise another central tax officer in writing.
Treating inspection and search as the same thing.
Both involve visiting premises.
Fix: Inspection under Section 67(1) is a visit to places of business. Search and seizure under Section 67(2) is aimed at secreted goods, documents, books or things and allows seizure.
Mixing up the 30-day and six-month periods.
Both relate to return after seizure.
Fix: 30 days: documents not relied upon in a notice, counted from issue of the notice. Six months: goods, counted from seizure, extendable by up to six months.
Saying seizure is possible only for goods.
The word 'seizure' suggests physical stock.
Fix: Section 67(2) covers goods liable to confiscation, and documents, books or things relevant to proceedings.
Forgetting the order when goods cannot be seized.
Students stop at seizure.
Fix: Mention the order not to remove, part with or deal with goods without permission (Section 67(2) proviso, Rule 139(4), FORM GST INS-03).
Ignoring the taxpayer's rights.
Answers focus only on the department's powers.
Fix: Add the right to make copies or extracts, provisional release on bond and security, and return of documents and goods within the time limits.

Worked examples

Example 1

An Assistant Commissioner of central tax, believing that Vishal Traders in Pune has suppressed stock, personally orders a team to inspect its godown. Is the action valid under Section 67?

Show the solution

Section 67(1) requires reasons to believe by a proper officer not below the rank of Joint Commissioner.
An Assistant Commissioner is below that rank, so he cannot form the belief that triggers inspection.
The authorisation must also be in writing, in FORM GST INS-01 under Rule 139(1), given to a subordinate officer.

Answer: The action is not valid as described. A proper officer of at least Joint Commissioner rank must form the belief and give written authorisation (FORM GST INS-01) to the inspecting officer.

Example 2

On 10 March, officers seized goods and some account books from Kaveri Enterprises under Section 67(2). The books were not relied upon in the notice issued on 20 April. No notice was issued for the goods that were seized separately on 10 March, and no extension was granted. By what dates must the books and goods be returned?

Show the solution

Books and documents not relied upon in the notice must be returned within 30 days of issue of the notice (Section 67(3)).
The notice was issued on 20 April, so the books must be returned within 30 days, that is, by 20 May.
For goods, the notice must be given within six months of seizure (Section 67(7)).
Six months from 10 March ends on 10 September. No notice was given for these goods and no extension was granted, so they must be returned by then.

Answer: The books must be returned within 30 days of the notice, by 20 May. The goods must be returned if no notice is issued within six months of seizure, that is by 10 September. The proper officer could have extended this by up to six months for sufficient cause.

Exam tips

Quote the officer's rank and the words 'reasons to believe' in every Section 67 answer. Examiners look for them.
Memorise the three time periods: 30 days, six months, and the further six months. Case questions often test these.
Mention Rule 139 forms (INS-01, INS-02, INS-03) and the signed inventory to show procedural knowledge.
Link this topic to release of seized goods and arrest provisions if the question asks for the full sequence of enforcement.

Practice questions from Inspection, Search, Seizure, Arrest and Prosecution

Inspection, Search and Seizure under GST in other exams

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

Inspection, Search and Seizure under GST: frequently asked questions

Who can authorise search and seizure under the CGST Act?

A proper officer not below the rank of Joint Commissioner. He may authorise another central tax officer in writing, or himself search and seize under Section 67(2).

Can seized goods be released before the case ends?

Yes. Under Section 67(6), goods seized under sub-section (2) can be released provisionally on executing a bond and furnishing security as prescribed, or on payment of the applicable tax, interest and penalty.

What can the officer do if a person refuses access to premises?

Under Section 67(4), the authorised officer can seal or break open the door of the premises, or any almirah, electronic device, box or receptacle in which goods, accounts, registers or documents are suspected to be concealed, where access is denied.

Can a taxpayer take copies of seized documents?

Yes. The person from whose custody documents are seized may make copies or take extracts in the presence of an authorised officer, at the time and place the officer indicates. This is not allowed where the proper officer thinks it would prejudice the investigation.