ection 69 – Power to Arrest
Section 69 of CGST Act, 2017 – Power to Arrest
Updated on: February 2026 (as applicable till date)
Prepared by: Yours Tax Consultant
1. Objective of Section 69
Section 69 empowers GST authorities to arrest a person in cases involving serious offences under GST.
This provision is intended to:
- Prevent large-scale tax evasion
- Stop fake invoicing and ITC fraud
- Ensure presence of accused during investigation
Because arrest affects personal liberty, this power is subject to strict legal safeguards.
2. Statutory Provision – Section 69
Section 69(1):
Where the Commissioner has reasons to believe
that a person has committed any offence
specified in clauses (a), (b), (c) or (d) of sub-section (1)
of section 132,
which is punishable under clause (i) or clause (ii)
of sub-section (1),
or sub-section (2) of the said section,
he may, by order,
authorise any officer of central tax
to arrest such person.
Section 69(2):
Where a person is arrested under sub-section (1)
for an offence specified under section 132(5),
the officer authorised to arrest
shall inform such person
of the grounds of arrest
and produce him before a Magistrate
within twenty-four hours.
Section 69(3):
Subject to the provisions of the Code of Criminal Procedure, 1973,
where a person is arrested
for any offence specified under section 132
which is punishable under clause (i) or (ii)
of sub-section (1) or sub-section (2),
he shall be admitted to bail
or in default of bail,
forwarded to the custody of the Magistrate.
3. Offences for Which Arrest Can Be Made
Arrest under Section 69 is linked to Section 132 offences, such as:
- Supply without invoice to evade tax
- Issuance of fake invoices
- Wrongful availment or utilisation of ITC
- Collection of tax but failure to pay to Government
Arrest is not permitted for minor procedural defaults.
4. Authority Empowered to Order Arrest
Only the Commissioner can:
- Form “reason to believe”
- Authorise arrest in writing
Arrest by lower officers without authorisation is illegal.
5. Cognizable and Non-Cognizable Offences
Under Section 132:
- Cognizable & Non-bailable: Offences involving tax evasion above prescribed threshold
- Non-cognizable & Bailable: Lower-value offences
The nature of offence determines arrest procedure.
6. Safeguards During Arrest
The arrested person has the right to:
- Be informed of grounds of arrest
- Consult a lawyer
- Medical examination
- Be produced before Magistrate within 24 hours
These safeguards flow from:
- Article 21 & 22 of the Constitution
- Code of Criminal Procedure, 1973
7. Arrest vs Summons
- Summons (Section 70): For inquiry and evidence collection
- Arrest (Section 69): For serious offences involving intent to evade tax
Arrest should not be used as a recovery tool.
8. Judicial Principles on GST Arrest
Courts have consistently held that:
- Arrest should be last resort
- Mere demand or dispute is not ground for arrest
- Reasons to believe must be recorded
- Custodial interrogation must be justified
Illegal arrests have resulted in strictures against tax authorities.
9. Practical Scenarios Where Arrest Is Invoked
- Fake invoice rackets
- Circular trading with no actual supply
- Collection of GST without payment
- Bogus firms with vanished proprietors
10. Related Provisions
11. Professional Insight
Section 69 is a power of last resort. In GST, arrest is meant to protect the system, not to force tax recovery. Early cooperation, documentation, and legal guidance can often prevent arrest situations.
Disclaimer: This article is prepared based on the CGST Act, CGST Rules, notifications and prevailing legal position as applicable till date. Arrest powers are subject to constitutional safeguards and judicial scrutiny.
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