GST officers have wide enforcement powers: search & seizure (Section 67), inspection of goods in transit (Section 68), detention & confiscation (Sections 129-130), arrest (Section 69), and summons (Section 70). This guide covers all enforcement mechanisms, your rights, and how to respond.
If officer has reason to believe that goods are concealed, accounts are falsified, or ITC is fraudulently availed — can authorize search of any place of business, warehouse, or vehicle. Goods, documents, books, and things liable to confiscation may be seized.
Authority: Joint Commissioner or above
Process: Authorization in writing → Search conducted → Seizure list (panchnama) prepared → Seized goods kept in custody → Must be returned within 6 months (or extended by 6 months with Commissioner approval)
Any conveyance carrying goods of value > ₹50,000 can be intercepted and inspected. Officer verifies e-way bill, tax invoice, and delivery challan. If documents missing or goods mismatch: goods detained.
Authority: Commissioner or authorized officer
Process: Vehicle stopped → Documents checked → If valid: released → If invalid: detained → Owner pays tax + penalty or goods confiscated
Goods in transit without proper documents (e-way bill, invoice) can be detained under Section 129. If tax is evaded: goods may be confiscated under Section 130. Owner can get goods released by paying applicable tax + 200% penalty (or 50% value of goods for exempt goods).
Authority: Proper officer
Process: Detention order (MOV-06) → Show cause notice (MOV-07) → Reply → Order (MOV-09) → Pay penalty or confiscation
Commissioner can authorize arrest of a person if there are reasons to believe the person committed a cognizable offence (tax evasion > ₹5 crore). Arrested person must be produced before Magistrate within 24 hours. Arrest power is used sparingly — primarily for fake invoice rackets.
Authority: Commissioner (authorization required)
Process: Commissioner authorization → Arrest → Inform person of grounds → Produce before Magistrate within 24 hours → Bail application
Officer can summon any person to give evidence or produce documents relating to any proceeding. Person summoned is legally bound to attend and produce documents. Non-attendance attracts penalty and can be treated as obstruction.
Authority: Proper officer
Process: Summons issued → Person attends → Gives statement/produces documents → Statement recorded → Can be used as evidence
Officer can access any business premises for inspection, verification of records, and stock verification. This is less intrusive than search — no seizure involved. Purpose is usually return verification or audit preparation.
Authority: Officer authorized by Commissioner
Process: Officer visits → Requests access → Inspects records → Takes notes/copies → No seizure → Issues observations if discrepancies found
Tax amount + ₹10,000 or tax whichever higher. Goods detained until penalty paid.
Forms: MOV-06 (Detention), MOV-07 (SCN)Tax + penalty. Recent amendment allows extension with penalty if delay is genuinely due to transit issues.
Forms: MOV-06Excess goods detained. Tax + penalty on unaccounted goods. Can lead to further investigation.
Forms: MOV-06, MOV-07, MOV-09Tax + 200% penalty on owner-declared goods (or 50% value for exempt goods). Goods released immediately on payment.
Forms: MOV-06, DRC-03Under Section 67, search requires: (1) Written authorization from Joint Commissioner or above, (2) Reason to believe that goods liable to confiscation are concealed, or accounts/documents are falsified, or ITC is fraudulently availed. The search must be conducted in presence of two independent witnesses. A panchnama (seizure memo) must be prepared. Goods seized must be returned within 6 months unless extended by Commissioner.
Under Section 129: (1) Goods and vehicle are detained, (2) Detention order (MOV-06) is issued, (3) Show cause notice (MOV-07) served on the owner/driver, (4) Owner can get goods released by paying: applicable tax + 200% penalty (for taxable goods) or 50% of value (for exempt goods), (5) If not paid within 14 days: confiscation proceedings under Section 130. Always carry valid e-way bill + tax invoice during transit.
Only for cognizable offences (tax evasion > ₹5 crore). The Commissioner must authorize the arrest in writing. For non-cognizable offences (₹1-5 crore): arrest requires a warrant from the Magistrate. In practice, arrest is used sparingly and primarily for fake invoice rackets and habitual offenders. Several High Courts have restrained GST authorities from making arbitrary arrests.
For goods detained under Section 129: (a) If owner comes forward: tax + 200% penalty of tax amount, (b) If owner does not come forward: tax + 50% of value of goods, (c) For exempt goods: 2% of value or ₹25,000 (whichever is less). Payment can be made via DRC-03 on GST portal. After payment, goods and vehicle are released immediately.
Under Section 67(7): seized goods must be returned within 6 months from the date of seizure. The Commissioner can extend this by another 6 months (maximum 1 year total). If not returned within the prescribed period, the goods are deemed released. Perishable/hazardous goods may be disposed of immediately with proper documentation.
Auto-generate e-way bills with invoices, validate before dispatch, and avoid detention during transit.
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