The Institute of Chartered Accountants of India (ICAI) has released a revised edition of its “Handbook on Inspection, Search, Seizure and Arrest under GST”, incorporating legal and procedural changes up to 15th July 2025.
The handbook, published by the GST & Indirect Taxes Committee of ICAI, aims to simplify the complex framework governing enforcement under the Goods and Services Tax (GST) law. It provides clarity on inspection, search, seizure, arrest, confiscation, interception of consignments, summons, and access to business premises under various sections of the CGST Act, 2017.
Key Highlights:
- Updated Provisions: Covers amendments and circulars up to mid-2025, including clarifications on jurisdiction, “reasons to believe,” admissibility of evidence, and safeguards against misuse of enforcement powers.
- Self-Assessment Emphasis: Reinforces that GST is a self-assessment-based tax regime, with the burden of proof largely on the Revenue, except in cases of input tax credit claims.
- Procedural Safeguards: Details strict conditions for intrusive actions such as search and seizure (Sec. 67) and arrest (Sec. 69), highlighting the need for judicial scrutiny and adherence to natural justice.
- Taxpayer Rights: Explains taxpayers’ ability to challenge invalid proceedings, resist “spot recoveries,” and demand fair process.
- Consultant Liability: Clarifies limited circumstances under which tax consultants may be held liable under penalty and prosecution provisions.
- Confiscation & Transit Rules: Provides structured guidance on confiscation of goods (Sec. 130) and interception of consignments in transit (Secs. 68 & 129).
- Practical Guidance: Includes step-by-step enforcement procedures, sample formats of official letters, and references to CBIC instructions.
The ICAI President commended the Committee’s efforts, stating that the updated handbook will “strengthen fair and accountable tax administration” and help professionals discharge responsibilities “with greater efficiency and confidence”.
The Handbook can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/08/Handbook-on-Inspection-Search-Seizure-and-Arrest-under-GST.pdf
