Section 67 — Power of Inspection, Search, and Seizure
Inspection (Section 67(1)): Officer with written authorization from Joint Commissioner can inspect any place of business if they have reason to believe taxable goods are stored without payment of tax, or records are not properly maintained. No warrant needed for inspection — only authorization.
Search (Section 67(2)): If after inspection the officer has reason to believe goods/documents are secreted: can obtain search warrant from Magistrate and conduct full search. During search: can seize goods, documents, books, electronic records. Panchnama (search memo) prepared in presence of witnesses.
Section 68-69 — Inspection of Goods in Transit
Officers can stop and inspect goods in transit to verify e-way bill compliance. The transporter/driver must carry: (a) invoice/bill of supply/delivery challan, (b) valid e-way bill (Part A + Part B). If documents are missing/invalid: goods and vehicle detained under Section 129.
Section 129 — Detention, Seizure, and Release of Goods in Transit
E-way bill violation: Goods and vehicle detained. Release options:
(a) Owner comes forward: pay applicable tax + penalty equal to 200% of tax (prior to amendment, it was 100% — increased to 200% by Finance Act 2021).
(b) Owner does not come forward: pay 50% of value of goods as penalty + applicable tax.
(c) If not released within 7 days: further detention — and after 14 days, confiscation proceedings under Section 130 can be initiated.
Section 130 — Confiscation of Goods and Conveyances
If goods are liable to confiscation (used to evade tax, transported without documents with intent to evade): officer can confiscate goods and the conveyance used for transport. Person can pay fine in lieu of confiscation (redemption fine). Confiscated goods are sold by the department. Appeal available against confiscation order within 3 months.
E-Way Bill Checks Are Real
Thousands of vehicles are intercepted daily across India at check-posts, mobile squads, and random checks. Even minor errors — expired e-way bill by a few hours, wrong vehicle number in Part B, distance exceeding e-way bill validity — result in detention. Penalty: 200% of tax. For a consignment worth Rs. 10 lakh with 18% GST (Rs. 1.8 lakh tax), penalty = Rs. 3.6 lakh PLUS the Rs. 1.8 lakh tax = Rs. 5.4 lakh total. Always verify e-way bill validity before dispatching goods.
Disclaimer
This article is for general informational and educational purposes only. Consult a qualified Chartered Accountant, Tax Consultant, or GST Practitioner before acting. TaxClue Consultech Pvt Ltd accepts no liability. All drafts and templates are illustrative only.
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❓ Frequently Asked Questions
What are the key requirements for GST search seizure?
GST search seizure requires compliance with CGST/IGST Act provisions and applicable rules. Filing on GST portal (gst.gov.in). Non-compliance attracts interest at 18% per annum, late fees, and potential penalty proceedings. Always verify the latest notifications on cbic.gov.in before taking any compliance position.
What is the penalty for non-compliance with GST search seizure?
Penalties vary by nature of default: late filing attracts Rs. 50/day (Rs. 20 for nil return) capped at Rs. 10,000 per return. Tax short-payment attracts interest at 18% per annum plus penalty of 10% (Section 73 — no fraud) or 100% (Section 74 — fraud/suppression). Prosecution possible for amounts exceeding Rs. 2 crore involving fraud.
Where can I find the latest updates on GST search seizure?
Check cbic.gov.in for latest notifications, circulars, and orders. The GST portal (gst.gov.in) provides filing utilities, advisory, and FAQs. GST Council meeting decisions are published on gstcouncil.gov.in. Professional guidance available from ICAI, ICSI, and ICMAI. Contact us for compliance support.
