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

Power to Arrest and Summon under CGST Act

Updated 11 October 2026 · Fact-checked

Under section 69, the Commissioner may, by order, authorise a central tax officer to arrest a person he has reason to believe committed specified offences under section 132. Under section 70, the proper officer may summon any person to give evidence or produce documents. Cognizable and bail status depend on section 132.

Understand Power to Arrest and Summon

GST officers can investigate and, in serious cases, arrest. Two sections matter here. Section 69 deals with arrest. Section 70 deals with summons. They work together: summons gathers evidence, and arrest is the last step in serious cases.

Arrest (section 69). The power does not belong to every officer. The Commissioner must have reasons to believe that a person has committed an offence in clauses (a), (b), (c) or (d) of section 132(1). That offence must be punishable under clause (i) or (ii) of section 132(1), or under section 132(2). Clauses (a) to (d) cover supply without invoice with intent to evade tax, invoice without supply, ITC availed on such invoices or fraudulently without invoice, and collecting tax but not paying it beyond three months from the due date. Only then may the Commissioner, by order, authorise a central tax officer to arrest.

In money terms, clause (i) is tax evaded, ITC wrongly availed or utilised, or refund wrongly taken above ₹5 crore (500 lakh rupees). Clause (ii) is above ₹2 crore up to ₹5 crore. So arrest is linked to high-value offences, or to repeat offenders under section 132(2).

Cognizable or not (section 132(4) and (5)). The general rule is that all offences under the Act are non-cognizable and bailable. The exception is the offence in clause (a), (b), (c) or (d) of section 132(1) punishable under clause (i), meaning an amount above ₹5 crore. Those are cognizable and non-bailable. Prosecution needs the previous sanction of the Commissioner (section 132(6)).

Procedure after arrest (section 69(2) and (3)). If the arrest is for a cognizable and non-bailable offence under section 132(5), the officer must inform the person of the grounds of arrest and produce him before a Magistrate within 24 hours. If the arrest is for an offence that is non-cognizable and bailable (section 132(4)), the person shall be admitted to bail or, failing bail, forwarded to the custody of the Magistrate, subject to the Code of Criminal Procedure, 1973. In such a case the Deputy Commissioner or Assistant Commissioner has the same powers as an officer-in-charge of a police station for releasing the person on bail or otherwise.

Summons (section 70). The proper officer can summon any person whose attendance he considers necessary, to give evidence or produce a document or thing in any inquiry. He has the powers of a civil court under the Code of Civil Procedure, 1908. The summoned person must attend in person or through an authorised representative, as the officer directs, and must state the truth and produce the documents required. This duty is stated in section 70(1A), inserted from 1 November 2024. The inquiry is deemed a judicial proceeding under sections 193 and 228 of the Indian Penal Code, so false statements carry serious consequences.

Key rules to remember

Who authorises arrest: Commissioner's order → authorised central tax officer arrests (s. 69(1)); Needs reasons to believe an offence in s. 132(1)(a)-(d) punishable under clause (i) or (ii), or s. 132(2).
Arrest thresholds: Clause (i): amount > ₹5 crore. Clause (ii): > ₹2 crore up to ₹5 crore; Amount means tax evaded, ITC wrongly availed or utilised, or refund wrongly taken. Five hundred lakh rupees = ₹5 crore.
Default status of offences: All offences: non-cognizable and bailable (s. 132(4)); Subject to the exception in s. 132(5).
Exception: s. 132(1)(a)/(b)/(c)/(d) punishable under clause (i) (> ₹5 crore) = cognizable and non-bailable (s. 132(5)); Only these four clauses, only in the highest tier.
Production before Magistrate: Arrest for s. 132(5) offence: inform grounds + produce before Magistrate within 24 hours (s. 69(2)); Applies to the cognizable, non-bailable category.
Bail position: Arrest for s. 132(4) offence: admit to bail, or forward to Magistrate's custody (s. 69(3)(a)); Subject to the Code of Criminal Procedure, 1973.
Summons duty: Summoned person must attend in person or by authorised representative and state the truth (s. 70(1A)); Inquiry is a judicial proceeding under IPC sections 193 and 228 (s. 70(2)).
Sanction: No prosecution without previous sanction of the Commissioner (s. 132(6)); Prosecution is separate from arrest.

How to solve Power to Arrest and Summon questions

Use this order for any case question on arrest or summons. Provision, facts, conclusion.

1Identify whether the question is about arrest (section 69), summons (section 70), or both.
2Find the offence in section 132(1). Match the facts to clause (a), (b), (c), (d) or another clause.
3Find the amount of tax evaded, ITC wrongly availed or utilised, or refund wrongly taken. Place it in the tier: above ₹5 crore, ₹2 crore to ₹5 crore, or lower.
4Decide whether arrest can be authorised: the offence must be in clauses (a)-(d), punishable under clause (i) or (ii), or it is a repeat conviction under section 132(2). Also check that the Commissioner has issued an order.
5Classify the offence as cognizable and non-bailable (section 132(5)) or non-cognizable and bailable (section 132(4)).
6Apply the procedure: grounds of arrest and Magistrate within 24 hours, or bail provisions.
7For summons, check the officer is a proper officer, the person is needed for evidence or documents, and the duty to attend and state the truth applies.
8Write a clear conclusion in one or two lines, naming the sections.

Quickest way: Three-check shortcut: clause, amount, order

When to use it: Use when time is short and the question asks whether someone can be arrested or whether the offence is bailable.

Clause check: is the offence under section 132(1)(a), (b), (c) or (d)?
Amount check: is it above ₹5 crore? If yes, cognizable and non-bailable. If ₹2 crore to ₹5 crore, arrest is possible but the offence is non-cognizable and bailable.
Order check: has the Commissioner authorised the arrest in writing?
Conclude, then cite sections 69, 132(4) and 132(5) in one line each.

Common mistakes in Power to Arrest and Summon

Saying every GST offence is cognizable and non-bailable.
Students remember arrest as a harsh power and generalise.
Fix: Remember the default: non-cognizable and bailable. Only clauses (a)-(d) in the above ₹5 crore tier are cognizable and non-bailable.
Saying any GST officer can arrest on his own.
Confusion with general police powers.
Fix: Arrest needs the Commissioner's order authorising a central tax officer, based on reasons to believe.
Applying the 24-hour Magistrate rule to all arrests.
Section 69(2) and (3) are read together without separating them.
Fix: The 24-hour rule with grounds is stated for section 132(5) offences. For section 132(4) offences, apply the bail provision in section 69(3).
Mixing up the amount tiers and misquoting the ₹2 crore and ₹5 crore limits.
The Act writes them as lakh rupees.
Fix: Convert: 500 lakh = ₹5 crore, 200 lakh = ₹2 crore. Above ₹5 crore is clause (i), above ₹2 crore up to ₹5 crore is clause (ii).
Treating a summons as optional or as a mere request.
Students see it as an informal inquiry.
Fix: A summoned person is bound to attend, in person or by an authorised representative, and must state the truth. The inquiry is a judicial proceeding.
Confusing arrest with prosecution.
Both come from section 132 offences.
Fix: Prosecution needs the Commissioner's previous sanction under section 132(6). Arrest needs an authorising order under section 69(1).

Worked examples

Example 1

Sharma Traders Pvt Ltd, Jaipur, issued invoices worth a large value without any supply of goods. This allowed buyers to claim ITC of ₹3,20,00,000 wrongly. The Commissioner has reasons to believe the director committed the offence. Can the director be arrested? Is the offence bailable?

Show the solution

Provision: issuing invoices without supply, leading to wrongful ITC, is the offence in section 132(1)(b).
Amount: ₹3,20,00,000 is ₹3.2 crore. It is above ₹2 crore but not above ₹5 crore, so the offence is punishable under section 132(1)(ii). Clause (b) is the offence. Clause (ii) is the punishment.
Arrest: section 69(1) covers offences in clauses (a)-(d) punishable under clause (i) or (ii). An offence under clause (b) that is punishable under clause (ii) qualifies. The Commissioner may, by order, authorise a central tax officer to arrest.
Status: section 132(5) makes only offences in clauses (a)-(d) punishable under clause (i) cognizable and non-bailable. This offence is punishable under clause (ii), so section 132(4) applies: non-cognizable and bailable.
Procedure: under section 69(3)(a), the person shall be admitted to bail or, failing bail, forwarded to the custody of the Magistrate, subject to the Code of Criminal Procedure, 1973. The Deputy or Assistant Commissioner has the powers of an officer-in-charge of a police station for bail.

Answer: Yes, the director can be arrested if the Commissioner authorises it by order. The offence is under section 132(1)(b) and punishable under section 132(1)(ii). It is non-cognizable and bailable because the amount is ₹3.2 crore, not above ₹5 crore.

Example 2

An officer issues a summons to Meera, the accounts manager of Kaveri Industries Ltd, to produce purchase records in an inquiry. She says she is not the taxable person and will not attend. Is she right?

Show the solution

Provision: section 70(1) lets the proper officer summon any person whose attendance he considers necessary to give evidence or produce documents, with civil court powers under the Code of Civil Procedure, 1908.
Facts: Meera need not be the taxable person. Any person whose attendance is considered necessary can be summoned.
Duty: section 70(1A) says all summoned persons are bound to attend in person or by an authorised representative as the officer directs. They must state the truth and produce the documents required.
Consequence: under section 70(2) the inquiry is a judicial proceeding under IPC sections 193 and 228, so false statements or non-compliance have serious consequences.

Answer: Meera is wrong. She is bound to attend, in person or through an authorised representative as the officer directs, state the truth and produce the required records.

Exam tips

Write the section number with every statement: 69 for arrest, 70 for summons, 132(4) and 132(5) for cognizable status.
Always compute the amount tier before answering. Examiners build facts around the ₹2 crore and ₹5 crore limits.
Use the structure provision, facts, conclusion. Keep the conclusion to a line.
State the default rule first (non-cognizable and bailable), then the exception. This earns marks even if the facts are tricky.
In summons questions, mention the civil court power, the duty to state the truth and the judicial proceeding status.

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

Power to Arrest and Summon in other exams

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

CA FinalPower of Arrest under Section 69

Power to Arrest and Summon: frequently asked questions

Who can order an arrest under section 69 of the CGST Act?

The Commissioner, by order, can authorise any officer of central tax to arrest a person. He must have reasons to believe that the person committed a specified offence under section 132(1)(a) to (d), punishable under clause (i) or (ii), or section 132(2).

Which GST offences are cognizable and non-bailable?

Offences in clauses (a), (b), (c) and (d) of section 132(1), when punishable under clause (i), meaning an amount above ₹5 crore. All other offences under the Act are non-cognizable and bailable under section 132(4).

Must the person be told why they are arrested?

For a section 132(5) offence, the officer must inform the person of the grounds of arrest and produce him before a Magistrate within 24 hours. This is stated in section 69(2).

Can a person send a representative in response to a GST summons?

Yes, but only as the officer directs. Section 70(1A) binds the summoned person to attend either in person or by an authorised representative, as the officer may direct. The person or representative who appears must state the truth and produce the documents required.