Goods and Services Tax (GST) and Corporate Tax Planning · Inspection, Search, Seizure, Offences and Penalties

Inspection, Search and Seizure under Section 67 CGST Act

Updated 11 October 2026 · Fact-checked

Section 67 CGST Act lets a proper officer, not below Joint Commissioner, who has reasons to believe tax evasion has occurred, authorise in writing an officer to inspect premises, or to search and seize goods, documents or things. It carries safeguards: return of documents, copies, provisional release and a six-month notice limit.

Understand Inspection, Search and Seizure under Section 67

Section 67 gives the tax department three linked powers: inspection, search and seizure, and seizure of documents produced before the officer. All of them need a trigger. The officer must have reasons to believe that something is wrong. Suspicion alone is not enough, and the belief must rest on material.

The power starts at the top. Only a proper officer not below the rank of Joint Commissioner can form the belief and authorise others. He authorises in writing another officer of central tax. This written authorisation is your first exam point, because without it the action is open to challenge.

Inspection is milder. Under sub-section (1), the belief relates to two cases: (a) a taxable person has suppressed a supply or stock, claimed excess input tax credit, or contravened the Act to evade tax; or (b) a transporter, or an owner or operator of a warehouse, godown or other place, keeps goods that escaped tax or keeps accounts or goods in a way likely to cause evasion. The officer may then inspect the places of business of such persons.

Search and seizure is stronger. Under sub-section (2), the officer 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 in any place. This can follow an inspection or arise otherwise. He may authorise another officer to search and seize, or do it himself. If seizing goods is not practicable, he may serve an order that the owner or custodian shall not remove, part with or deal with the goods without his permission.

The Act also protects the person searched. Seized documents are kept only as long as needed. Documents not relied upon in a notice must be returned within thirty days of the notice. You may make copies or extracts in the presence of an authorised officer. 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, goods go back.

Key rules to remember

Who can authorise: Proper officer not below Joint Commissioner, with reasons to believe, authorises in writing any other officer of central tax; Applies to inspection under s.67(1) and search and seizure under s.67(2). He may also search and seize himself under s.67(2).
Trigger for inspection: Reason to believe: (a) suppression, excess ITC or contravention to evade tax by a taxable person; or (b) transporter/warehouse keeper holds goods that escaped tax or keeps accounts or goods so as to cause evasion; Inspection is of places of business of the taxable person, transporter, or owner/operator of warehouse, godown or other place.
Trigger for search and seizure: Reason to believe: goods liable to confiscation, or documents, books or things useful or relevant to proceedings, are secreted in any place; Can follow an inspection or be independent of it.
Return of documents: Documents not relied upon for the notice: return within 30 days of issue of the notice; Retention of seized documents is only as long as necessary for examination and inquiry or proceedings.
Time limit for notice on seized goods: No notice within 6 months of seizure → goods returned; extendable by proper officer for up to a further 6 months on sufficient cause; Extension needs sufficient cause shown. The total cannot go beyond twelve months.
Provisional release: Seized goods released on bond and security as prescribed, or on payment of applicable tax, interest and penalty; Manner and quantum of bond and security are prescribed in the rules.
Seizure of documents produced before officer: Reason to believe person evaded or is attempting to evade tax → seize accounts, registers or documents produced before him, for reasons recorded in writing, with a receipt; Retained as long as necessary for proceedings or prosecution.

How to solve Inspection, Search and Seizure under Section 67 questions

Case questions on section 67 follow the pattern provision, analysis, conclusion. Use this order.

1Identify the action taken: inspection of premises, search and seizure, seizure of documents produced, or a purchase check by the Commissioner.
2Check the authority. Is the officer not below Joint Commissioner, or authorised in writing by one who is? Note any missing authorisation.
3Test the reason to believe. Match the facts to the limbs of s.67(1)(a), (1)(b) or the 'secreted' condition of s.67(2).
4Check the procedure: break-open power on denied access, receipt for seized documents, inventory where goods are notified for disposal, application of CrPC search provisions.
5Apply the safeguards: copies and extracts, return within thirty days, provisional release, non-removal order where seizure is impracticable.
6Apply the time limits: notice within six months of seizure, extension up to six more months.
7Write the conclusion clearly: valid or invalid action, and what relief or step the person can take.

Quickest way: Authority, belief, safeguard check

When to use it: Use when a short case gives a search or seizure and asks whether it was valid or what the person can do.

Write A: authority. Joint Commissioner or above, in writing.
Write B: belief. Name the exact ground from the facts.
Write S: safeguards. Copies, thirty-day return, bond release, six-month notice.
Finish with a one-line conclusion that answers the question asked.

Common mistakes in Inspection, Search and Seizure under Section 67

Treating inspection and search as the same power.
Both sit in one section and are often written together.
Fix: Inspection is entry to places of business on belief of evasion. Search and seizure needs belief that goods or documents are secreted, and allows seizing.
Saying any GST officer can order a search.
Students recall that officers carry out the search and forget who authorises.
Fix: Only a proper officer not below Joint Commissioner forms the belief and authorises in writing. The authorised officer then acts.
Stating that goods are returned if notice is not given within six months, without the extension.
The proviso is skipped.
Fix: Add that the proper officer may extend the period for a further period not exceeding six months on sufficient cause.
Saying all seized documents must be returned in thirty days.
The rule is remembered loosely.
Fix: Only documents, books or things not relied upon for the notice must be returned within thirty days of issue of the notice.
Mixing section 67 with section 69 on arrest or section 70 on summons.
All are enforcement powers in the same chapter.
Fix: Section 67 covers inspection, search and seizure. Section 69 is arrest and section 70 is summons. Keep each answer to its own section.
Forgetting to apply facts and writing only the law.
Students rush to recall provisions.
Fix: Quote the ground from the facts, such as suppressed stock, then conclude.

Worked examples

Example 1

The Assistant Commissioner of GST in Pune has information that Shree Traders, Pune, suppressed stock of goods and claimed ITC beyond entitlement. He himself orders inspection of its godown. Is the inspection valid under section 67?

Show the solution

Provision: under s.67(1), the proper officer must be not below the rank of Joint Commissioner and must authorise inspection in writing.
Ground: suppression of stock and excess ITC fall within s.67(1)(a), so the ground is available.
Authority: an Assistant Commissioner is below Joint Commissioner, so he cannot form the belief and authorise on his own.
Conclusion: the inspection is not valid as ordered. A Joint Commissioner or higher officer must record reasons to believe and authorise an officer in writing.

Answer: The inspection is invalid because the order did not come from an officer not below Joint Commissioner, though the ground of suppression and excess ITC is valid.

Example 2

On 10 March, officers seized goods and documents from Kiran Pvt Ltd under section 67(2). A notice was issued on 20 April relying on invoices only. No notice was issued for the goods. What are the rights of the company?

Show the solution

Documents: books and things not relied upon for the notice must be returned within thirty days of the notice. So those not relied upon, other than invoices, must be returned by 20 May.
Copies: the company may make copies or take extracts of seized documents in the presence of an authorised officer, unless the proper officer thinks this would prejudice the investigation.
Goods release: the goods can be released provisionally on a bond and security as prescribed, or on payment of applicable tax, interest and penalty.
Notice for goods: if no notice about the goods is given within six months of seizure, that is by 10 September, they must be returned.
Extension: the proper officer may extend by up to a further six months on sufficient cause.

Answer: Kiran Pvt Ltd can ask for return of documents not relied upon within thirty days of the notice, take copies, seek provisional release of goods, and demand return of goods if no notice is given by 10 September, unless the period is extended for sufficient cause.

Exam tips

Begin every answer by naming the authority: not below Joint Commissioner, in writing.
Quote the exact trigger phrase, reasons to believe, and link it to the facts.
Keep the six-month and thirty-day limits separate and state the extension.
Show a clear conclusion on validity, since case answers are marked on analysis and conclusion.
Mention the break-open power and receipt for seized documents when facts show denied access.

Practice questions from Inspection, Search, Seizure, Offences and Penalties

Inspection, Search and Seizure under Section 67 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 Section 67: frequently asked questions

What is the difference between inspection and search under section 67?

Inspection under s.67(1) is entry to places of business of the taxable person, transporter or warehouse keeper on belief of evasion. Search under s.67(2) needs belief that goods or documents are secreted, and allows seizure.

Who can authorise search and seizure under section 67?

A proper officer not below the rank of Joint Commissioner. He may authorise another central tax officer in writing or search and seize himself.

Can seized goods be released before the case ends?

Yes. Seized goods can be released provisionally on a bond and security as prescribed, or on payment of applicable tax, interest and penalty.

What happens if no notice is issued after seizure of goods?

If no notice is given within six months of seizure, the goods are returned to the person from whom they were seized. The proper officer can extend this by up to six more months on sufficient cause.

Can the officer break open a locked premises?

Yes. The officer authorised under s.67(2) can seal or break open the door of premises, or an almirah, electronic device, box or receptacle, where access is denied.