GST Inspection Or Search

GST Inspection or Search: What To Do

If GST officers arrive at your business, you don’t have to be afraid — but you should know a few simple things. Cooperate, stay calm, and use the steps below.

Step 1 — Stay calm and check who they are

• Don’t panic. Be polite, offer them a seat, and stay cooperative. Getting angry or blocking them can itself become an offence.

• Ask to see their ID. Note down each officer’s name and designation from the identity card.

• Ask for the authorisation paper. Officers need a written order called Form GST INS-01 (the official paper that allows the visit). No paper means it is not a valid visit.

• Check the paper is genuine. It should carry a DIN (a unique number proving the paper is real) or an RFN (Reference Number — the code if it came from the GST portal). A DIN can be checked free on the CBIC website.

• See where it applies. The paper names which premises and which business/person it covers. Officers can only act within that.

Step 2 — Find out: is it an inspection or a search? (most important)

• It’s the same paper for both. Form GST INS-01 is headed “Authorisation for Inspection or

Search.” Look at which section is ticked.

• Section 67(1) ticked = inspection (a routine check of your business). Officers look at your books, stock, goods and the computers/software where business records are kept. Your locked phone or laptop is not the focus of an inspection.

• Section 67(2) ticked = search (a stronger step). This is used when officers believe something is hidden. Their powers are wider here — and so are the safeguards for you.

• Not sure which one? Politely ask the officer to point to the ticked section on the form.

Step 3 — Know what they can look at

• Business records: books of account, sales and purchase invoices, stock register, e-way bills, and the accounting software or computer where these are stored.

• The simple rule: anything connected to your GST is fair game; your private life is not.

• Not the target: family photos, personal chats, and apps that have nothing to do with the business.

Step 4 — If they ask for your phone or laptop

• In an inspection (67(1)): open and show the business records, invoices or accounting app

yourself, instead of handing over the whole device.

• In a search (67(2)): cooperate for business-related data, and call your CA or advocate straight away before going further.

• Keep it on business. If something they want to see is clearly personal and unrelated, say so calmly and politely.

• A habit that helps: keep a separate phone, email and WhatsApp number for the business — it makes any future visit far simpler.

Step 5 — What you must NOT do

• Don’t refuse outright, argue, or physically block the officers.

• Don’t delete, hide, edit or move any records, files or messages during the visit.

• Don’t give false documents or false statements.

• Don’t offer or pay anything to “settle” on the spot.

Step 6 — Protect yourself, on the record

• Stay present. You or a trusted staff member should be there while officers look around.

• Disagree calmly, in writing. If you object to something, say it politely and ask for it to be noted down.

• Get a receipt for anything taken. If officers take goods or documents away (seizure), insist on the seizure memo / panchnama (the official list of what was taken).

• You can keep copies. You are allowed to take copies of seized documents in the officer’s presence (a right under Section 67(5)).

• Write it down afterwards. Soon after, note the date, time, officer names, and what happened.

Step 7 — Call your CA or advocate immediately if...

• It is a search (67(2)), not just a routine inspection.

• They want to take your phone, laptop or any device.

• They talk about seizing goods, documents or records.

• You are asked to give a statement or to sign anything you don’t fully understand.

• You receive a summons (an official notice asking you to appear or answer questions — usually under Section 70).

Remember: cooperating while knowing these boundaries is not obstruction — it is simply the correct, confident way to handle the visit.