Section 69 of CGST Act - Power to Arrest

Updated: 15 September 2026

Section 69 of the Central Goods and Services Tax Act, 2017 empowers the Commissioner, on having reasons to believe that specified serious offences under Section 132 have been committed, to authorise an officer of central tax to arrest the person concerned. The provision also contains safeguards concerning grounds of arrest, production before a Magistrate and bail.

Meaning and scope of Section 69

The CGST Act does not separately define the word "arrest". In practical terms, arrest means taking a person into lawful custody and restricting personal liberty under legal authority. Section 69 is therefore a coercive power and must be exercised only when its statutory conditions are met. The power is linked to specified offences and punishment thresholds under Section 132; it is not a general power to arrest for every GST default.

Text and effect of Section 69

Section 69(1): Where the Commissioner has reasons to believe that a person has committed an offence specified in clauses (a), (b), (c) or (d) of Section 132(1), punishable under Section 132(1)(i) or (ii), or an offence covered by Section 132(2), the Commissioner may authorise an officer of central tax to arrest that person.

Section 69(2): If the arrest relates to an offence falling under Section 132(5), the authorised officer must inform the arrested person of the grounds of arrest and produce the person before a Magistrate within twenty-four hours.

Section 69(3): For offences falling under Section 132(4), the arrested person is to be admitted to bail or, in default of bail, forwarded to the custody of the Magistrate. For a non-cognizable and bailable offence, the Deputy Commissioner or Assistant Commissioner has, for bail purposes, powers corresponding to those of an officer-in-charge of a police station, subject to the applicable criminal procedure law.

Conditions before arrest under GST law

The statutory starting point is the Commissioner's reasons to believe. The belief must concern commission of the offences specifically identified in Section 69(1) and the applicable punishment category under Section 132. CBIC's arrest and bail guidelines further emphasise that the existence of a legal power to arrest does not mean that arrest should be automatic.

The case must fall within the offences and punishment categories referred to in Section 69(1).
The Commissioner must have reasons to believe that the person committed the relevant offence.
The Commissioner must issue an order authorising an officer of central tax to make the arrest.
The necessity for arrest should be considered in light of factors such as the nature of the offence, investigation needs, risk of absconding, evidence or witness interference, and cooperation with the investigation.

Important: CBIC Instruction No. 02/2022-23 (GST-Investigation), dated 17 August 2022, states that arrest should not be made routinely merely because the law permits it. The instruction incorporates the principle that personal liberty is important and that the justification for arrest must be distinguished from the mere existence of the power.

Cognizable and non-cognizable GST offences

Section 132 determines the punishment and classification relevant to arrest. Section 132(4) treats offences under the CGST Act, other than those covered by Section 132(5), as non-cognizable and bailable. Section 132(5) identifies the specified category that is cognizable and non-bailable. Because the monetary thresholds and the precise offence clauses in Section 132 are central to arrest exposure, Section 69 should always be read together with the current text of Section 132.

Rights and safeguards of an arrested person

Grounds of arrest: In a Section 132(5) case, Section 69(2) expressly requires the authorised officer to inform the person of the grounds of arrest.
Production before Magistrate: The arrested person covered by Section 69(2) must be produced before a Magistrate within twenty-four hours.
Bail in bailable cases: Section 69(3) provides for bail in offences covered by Section 132(4), subject to the applicable criminal procedure.
Reasoned and non-routine exercise of power: CBIC's arrest guidelines require officers to consider whether arrest is actually necessary in the facts of the case.

Criminal procedure update: The enacted text of Section 69(3) refers to the Code of Criminal Procedure, 1973. The Bharatiya Nagarik Suraksha Sanhita, 2023 came into force on 1 July 2024 and replaced the CrPC as the general criminal procedure law, subject to its transition and savings provisions. Current proceedings should therefore be considered with the applicable BNSS provisions and any relevant savings.

CBIC guidelines on arrest and bail

CBIC issued Instruction No. 02/2022-23 (GST-Investigation) on arrest and bail under the CGST Act. Among other matters, the guidelines address conditions precedent to arrest, procedure for arrest, post-arrest formalities and bail. Officers are expected to examine the necessity and proportionality of arrest rather than treat it as an inevitable consequence of investigation.

CBIC has separately issued Instruction No. 04/2022-23 (GST-Investigation) on launching prosecution. In arrest cases, the prosecution guidelines prescribe timelines for processing and filing prosecution complaints, particularly where bail has not been granted.

Related provisions

Section 69 forms part of Chapter XIV dealing with inspection, search, seizure and arrest. It should be read with Section 67 - Inspection, Search and Seizure, Section 68 - Inspection of Goods in Movement, Section 70 - Power to Summon, Section 71 - Access to Business Premises and Section 72 - Officers to Assist Proper Officers.

Official legal resources

For the authoritative statutory text and departmental instructions, refer to the India Code and the CBIC GST portal. Amendments, notifications and instructions should be checked as applicable to the relevant period.

Disclaimer: This article is for general legal information. Arrest, bail and prosecution questions depend on the facts, the applicable version of the statute and current judicial interpretation.