Published Quick answer — GST raids in 2026:
| Point | Position |
|---|---|
| Inspection | Section 67(1) CGST Act, on written authorisation in Form GST INS-01 by a Joint Commissioner or above |
| Search and seizure | Section 67(2): seizure of goods, documents, books and devices (order in INS-02; prohibitory order in INS-03 where removal is not practical) |
| Summons | Section 70: to give evidence or produce documents; the proceeding is a judicial proceeding |
| Arrest | Section 69, only for specified offences under section 132 with reasons to believe recorded by the Commissioner; written grounds of arrest (Instruction 01/2025-GST) |
| Payment during a search | Only voluntary, through DRC-03; no recovery during search (Instruction 01/2022-23) |
| What follows | Show cause notice under section 74 (up to FY 2023-24) or section 74A (FY 2024-25 onwards) |
In short: A GST raid is an inspection or search under section 67 of the CGST Act, authorised in Form INS-01 by a Joint Commissioner or above. Officers can seize goods and records, record statements under a section 70 summons and, for specified offences above ₹5 crore, arrest under section 69 with written grounds. No tax can be recovered during a search: any payment through DRC-03 must be voluntary (CBIC Instruction 01/2022-23), and the Supreme Court held in Radhika Agarwal (2025) that coerced payments violate fundamental rights.
GST searches have increased since 2023, especially on input tax credit from non-existent suppliers, undervalued supplies and unregistered branches. A GST raid is carried out either by the Central GST or DGGI officers or by the Kerala State GST intelligence wing, and both work under the same sections. This guide explains what the officers can and cannot do, what the courts and CBIC have said about arrest and payment, and what to do on the day.
What can GST officers do under section 67?
| Step | What the law says | Form |
|---|---|---|
| Authorisation | A Joint Commissioner or above must have reasons to believe that tax is being evaded or goods are being held for evasion | INS-01 |
| Inspection | Any place of business, including that of a transporter or warehouse operator, can be inspected | INS-01 |
| Search and seizure | Goods liable to confiscation and documents, books or things useful for proceedings can be seized | INS-02 |
| Prohibitory order | Where seizure is not practicable, the goods are ordered not to be removed or dealt with | INS-03 |
| Copies | You can take copies or extracts of seized documents, except where it would prejudice the investigation (section 67(5)) | — |
| Return of goods | Seized goods must be returned if no notice is issued within six months of seizure, extendable by six months (section 67(7)) | — |
The search is conducted in the presence of two independent witnesses, and a panchnama lists everything examined and seized. Goods can be released provisionally on a bond and security in Form INS-04.
What should you do during a GST raid?
- Check the authorisation (INS-01) and the officers' identity cards, and note which department and office they are from.
- Inform your Chartered Accountant and your senior accounts staff. Keep the person who maintains the GST returns available.
- Stay present while premises, systems and records are examined. Keep your own list of files, devices and documents taken.
- Give accurate statements. Do not estimate a liability, accept a list of "bogus" suppliers or agree to a figure without the reconciliation. It is fair to say that the figures will be given after checking the books.
- Read the panchnama and INS-02 before signing. Ask for copies of statements and of the panchnama.
- Do not pay because you are told to. Any payment during a search must be your own decision, through DRC-03.
Can GST officers make you pay during a search?
CBIC Instruction No. 01/2022-23 [GST-Investigation] of 25 May 2022 tells officers that there should be no recovery of tax during a search, inspection or investigation. A taxpayer can choose to pay through Form DRC-03, and doing so before a show cause notice reduces interest and penalty, but the decision must be voluntary. Complaints of coercion are to be enquired into, and the officers concerned can face action. In Radhika Agarwal v. Union of India (27 February 2025), the Supreme Court said that threatening arrest to obtain payment violates fundamental rights. A taxpayer who paid under coercion can approach the courts to get the money back.
How should you respond to a GST summons under section 70?
A summons requires a person to give evidence or produce documents. It is a judicial proceeding, so statements are made on oath and false statements carry consequences. Attend on the date, or ask in writing for a short adjournment with reasons. Take the documents asked for and a list of what is handed over. Directors and senior staff of large companies are normally not summoned in the first instance where the records can be produced by the authorised person. Ask for a copy of your statement.
When can a person be arrested under GST, and what are the safeguards?
Arrest is limited to specified offences under section 132 of the CGST Act, such as supply without invoice, availing credit on fake invoices or collecting tax without paying it. Those offences are cognisable and non-bailable only where the tax involved exceeds ₹5 crore (section 132(5)). The Supreme Court in Radhika Agarwal held that:
- the Commissioner must record reasons to believe, based on material, that the person has committed a non-bailable offence;
- arrest cannot be used merely to investigate whether the conditions are met, and must be used with great care;
- the safeguards of the criminal procedure code apply where the GST law does not exclude them; and
- a person can apply for anticipatory bail even before a complaint or FIR is filed.
CBIC Instruction No. 02/2022-23 of 17 August 2022 set guidelines for arrest and bail. They were revised by Instruction No. 01/2025-GST of 13 January 2025, which requires the grounds of arrest to be explained and given to the person in writing with the arrest memo.
What happens after a GST search?
A search usually leads to a show cause notice in Form DRC-01: under section 74 for years up to 2023-24, or section 74A for 2024-25 onwards. The reply, the reconciliation of credit and the records produced during the search decide the outcome. If the demand is confirmed, the route is the first appeal (APL-01) and then the GST Appellate Tribunal.
Need help with this? We advise during and after GST searches and inspections, prepare the reconciliation and replies to summons and show cause notices, and file appeals up to the GSTAT. For bail and writ matters we work with lawyers. See GST audit, notice and appeal services in Kochi or book a GST review call.
Frequently asked questions
What is a GST raid?
A GST raid is an inspection, search or seizure under section 67 of the CGST Act, carried out on written authorisation in Form GST INS-01 by a Joint Commissioner or above who has reasons to believe tax is being evaded.
Can GST officers force me to pay tax during a search?
No. CBIC Instruction No. 01/2022-23 of 25 May 2022 says there should be no recovery during a search, inspection or investigation. Payment through DRC-03 must be voluntary. The Supreme Court in Radhika Agarwal (2025) said threats of arrest to obtain payment violate fundamental rights.
What is Form INS-01?
INS-01 is the authorisation for inspection, search or seizure under section 67 of the CGST Act. Seizure is recorded in INS-02 and a prohibitory order, where goods cannot be removed, is issued in INS-03.
How long can GST officers keep seized goods?
If no notice is issued within six months of seizure, the goods must be returned. The period can be extended by up to six months for sufficient cause (section 67(7)).
What should I do if I receive a GST summons?
Attend on the date or seek a short adjournment in writing, take the documents asked for, answer accurately on oath, and ask for a copy of your statement. Involve your Chartered Accountant before you attend.
When can a person be arrested under GST?
Under section 69, only for specified offences under section 132, and the offence is non-bailable only where the tax involved exceeds ₹5 crore. The Commissioner must record reasons to believe based on material, and the grounds of arrest must be given in writing (Instruction 01/2025-GST).
Can I get anticipatory bail in a GST case?
Yes. The Supreme Court held in Radhika Agarwal v. Union of India (27 February 2025) that an application for anticipatory bail can be made even before an FIR or complaint is filed.
What happens after a GST search?
Usually a show cause notice in DRC-01 under section 74 (up to FY 2023-24) or section 74A (from FY 2024-25). The demand can then be contested in reply, in first appeal and before the GST Appellate Tribunal.
Related guides
- GST audit and assessment services in Kochi: notices, audits and appeals
- GST show cause notice (DRC-01): how to reply under sections 73, 74 and 74A
- GST Appellate Tribunal (GSTAT): how to appeal
- Income tax raid: search and survey, what to do
Sources
- Central Goods and Services Tax Act, 2017, sections 67, 69, 70 and 132; CGST Rules, 2017, rule 139 to 141 — CBIC GST
- CBIC instructions on GST investigation, arrest and bail — taxinformation.cbic.gov.in
- Radhika Agarwal v. Union of India, Writ Petition (Criminal) No. 336 of 2018, 27 February 2025 — Supreme Court of India
This guide reflects the law as at 11 November 2026. It is general information, not advice on a specific case.