When Can GST Officers Visit Business Premises of a Registered Person?

Summary: Article explains the statutory provisions governing when a GST officer may visit the premises of a registered person under the CGST Act and Rules, distinguishing between physical verification before and after registration (Rule 9 read with Rule 25 and Rule 25), audit (Section 65 read with Rule 101), inspection, search and seizure (Section 67 read with Rule 139), access to business premises (Section 71), and recovery proceedings under Section 79. It outlines the purpose, authority, procedural requirements, statutory limitations, prescribed forms, and records applicable to each type of visit, clarifies that provisions such as Sections 61, 68, 70 and Rule 56 do not independently authorise entry into business premises, and discusses the role of Section 66 in special audit. The article also summarises judicial principles relating to statutory search powers, provides practical guidance on verifying officer identity, authorisation and applicable provisions, maintaining records, handling statements, documents, digital records and payments, and sets out conduct expected from registered persons during different categories of visits while emphasising lawful cooperation within the statutory framework.

Statutory Powers, Procedural Safeguards and the Conduct Expected from the Registered Person when a GST Officers Visit his Business Premises 

1. Introduction

The expression “GST visit” is commonly used for several legally distinct proceedings.

The CGST Act, however, uses specific expressions:

• physical verification of the place of business;
• audit at the place of business;
• inspection;
• search;
• seizure; and
• access to business premises.

These expressions should not be used interchangeably.

An officer undertaking physical verification under Rule 25 does not exercise the powers of search under Section 67. Similarly, access under Section 71 is not, by itself, a search.

The authority, conditions and permissible acts of the officer must be identified from the particular section or rule invoked.

2. The principal statutory routes

A GST officer may visit the place of business of a registered person under the following five principal routes:

No.	Provision	Nature of visit
1	Rule 9 read with Rule 25	Physical verification before grant of registration
2	Rule 25	Physical verification after grant of registration
3	Section 65 read with Rule 101	Audit at the place of business
4	Section 67 read with Rule 139	Inspection, search and seizure
5	Section 71	Access to business premises

Apart from these, an officer may enter premises for execution of recovery proceedings under Section 79 read with the relevant recovery rules. Such entry is consequential to recovery and should not be confused with verification, audit, inspection or search.

3. Physical verification before grant of GST registration

Rule 9 read with Rule 25

During the processing of an application for registration, the proper officer may require physical verification of the place of business in the circumstances specified in Rule 9.

Rule 25 prescribes the manner of verification.

The proper officer must:

• conduct the physical verification of the place of business;
• upload the verification report in FORM GST REG-30;
• upload other documents, including photographs; and
• complete the exercise within the period prescribed by the rule.

Rule 9 expressly recognises physical verification of the place of business before grant of registration in specified cases.

Purpose

The purpose is to verify the existence of the place of business and the particulars stated in the application.

Nature of power

This is a physical verification.

It is not an inspection or search under Section 67.

The officer should therefore confine the visit to the purpose for which verification has been directed.

4. Physical verification after grant of GST registration

Rule 25

Rule 25 also permits physical verification after registration where the proper officer is satisfied that such verification is required.

The verification report must be uploaded in FORM GST REG-30, ordinarily within fifteen working days from the date of verification.

The rule specifically concerns physical verification of the place of business.

Situations in which verification may arise

Physical verification may arise where:

• the existence of the registered person at the declared place of business requires verification;
• the registration particulars require confirmation;
• the circumstances mentioned in Rule 9 make verification necessary; or
• the proper officer considers verification necessary after grant of registration.

Limit of the visit

A Rule 25 visit does not automatically authorise:

• search of cupboards or closed spaces;
• seizure of books, documents or goods;
• recording of statements as part of a search; or
• use of coercive powers available under Section 67.

For such action, an independent statutory authority must exist.

5. GST Audit at the place of business

Section 65 read with Rule 101

Section 65 authorises audit by tax authorities.

The audit may be conducted:

• at the place of business of the registered person; or
• in the office of the tax authorities.

The registered person must be informed by notice not less than fifteen working days before the conduct of audit.

The notice is issued in FORM GST ADT-01.

Section 65 expressly permits audit at the place of business and requires prior notice.

Scope of audit

The officer may verify:

• books of account;
• returns and statements;
• turnover;
• exemptions and deductions claimed;
• rate of tax applied;
• tax paid;
• refund claimed;
• input tax credit availed and utilised; and
• other relevant matters.

Rule 101 prescribes the manner of conducting the audit.

Obligation of the registered person

The registered person must:

• provide the necessary facility to verify books of account and documents;
• furnish information required by the officer; and
• render assistance for timely completion of audit.

Audit is not search

During audit, the officer examines records made available under the statutory scheme.

Audit does not, merely because it is conducted at the place of business, become a search under Section 67.

6. GST Office Inspection under Section 67(1)

Section 67 confers distinct powers of:

• inspection;
• search; and
• seizure.

These powers are subject to statutory conditions and should not be treated as a general authority to visit premises.

Authority competent to order inspection

The proper officer must not be below the rank of Joint Commissioner.

He must have reasons to believe that the taxable person has:

• suppressed a transaction relating to supply of goods or services or both;
• suppressed stock of goods in hand;
• claimed input tax credit in excess of entitlement; or
• contravened provisions of the Act or Rules to evade tax.

Where the statutory conditions exist, the proper officer may authorise an officer of central tax in writing to inspect:

• any place of business of the taxable person; or
• the premises of a person engaged in transporting goods, or an owner or operator of a warehouse or godown.

Section 67(1) therefore requires both:

Reasons to believe

+

Written authorisation

=

Lawful inspection

The statutory authority for inspection and its jurisdictional conditions are contained in Section 67.

7. Search under Section 67(2) of CGST Act

Search is a more intensive power.

The proper officer, not below the rank of Joint Commissioner, must have reasons to believe that:

• goods liable to confiscation; or
• documents, books or things useful or relevant to proceedings

are secreted in any place.

He may authorise an officer to search and seize such goods, documents, books or things.

Unlike Section 67(1), which refers to inspection of specified business premises, Section 67(2) uses the expression “any place.”

Authorisation

Rule 139 requires authorisation in FORM GST INS-01.

The authorisation should disclose whether the officer is authorised for:

• inspection under Section 67(1); or
• search under Section 67(2).

Where goods, documents, books or things are seized, an order of seizure is issued in FORM GST INS-02.

Where seizure of goods is not practicable, an order prohibiting removal, parting with or otherwise dealing with the goods may be issued in FORM GST INS-03.

8. Access to business premises

Section 71

Section 71 is an independent provision titled “Access to business premises.”

Any officer under the Act may have access to any place of business of a registered person where:

• the officer is authorised by the proper officer;
• the authorising proper officer is not below the rank of Joint Commissioner; and
• access is required for audit, scrutiny, verification or checks necessary to safeguard the interest of revenue.

The officer may inspect:

• books of account;
• documents;
• computers;
• computer programs;
• computer software, whether installed in a computer or otherwise; and
• such other things as may be required and available at the place.

The provision expressly requires authorisation by a proper officer not below the rank of Joint Commissioner.

Records to be made available

The person in charge must, on demand, make available:

• records prepared or maintained by the registered person;
• trial balance or its equivalent;
• annual financial statements, duly audited where required;
• cost audit report, if any;
• income-tax audit report, if any; and
• any other relevant record.

The prescribed records are to be made available within fifteen working days from the demand, or within such further period as may be allowed.

9. Distinction between Section 67 and Section 71 of CGST Act 2017

Point	Section 67	Section 71
Statutory expression	Inspection, search and seizure	Access to business premises
Jurisdictional condition	Reasons to believe	Authorisation for audit, scrutiny, verification or checks
Authorising authority	Proper officer not below Joint Commissioner	Proper officer not below Joint Commissioner
Written authorisation	FORM GST INS-01 under Rule 139	Written authorisation under Section 71
Search of secreted goods or documents	Permitted under Section 67(2), subject to conditions	Not expressly conferred
Seizure	Permitted under Section 67(2)	Not independently authorised
Purpose	Detection of specified contraventions and discovery of goods or documents	Audit, scrutiny, verification and checks
Place	Place of business under Section 67(1); any place under Section 67(2)	Place of business of registered person

The Department cannot use Section 71 as a substitute for Section 67 where the real purpose and conduct amount to search and seizure.

10. Special GST audit under Section 66

Section 66 empowers an officer not below the rank of Assistant Commissioner, with prior approval of the Commissioner, to direct the registered person to have the records examined and audited by a chartered accountant or cost accountant nominated by the Commissioner.

The direction is issued in FORM GST ADT-03.

However, Section 66 does not independently confer upon a GST officer a general power to visit the premises.

Where access to the place of business is required for purposes connected with special audit, the applicable authority must be traced to Section 71 or another enabling provision.

Therefore, Section 66 should not be counted as a separate and independent statutory power of entry.

11. GST Provisions which do not, by themselves, authorise a premises visit

Section 61 — Scrutiny of returns

Scrutiny ordinarily concerns examination of the return and related particulars.

Section 61 does not independently authorise entry into the place of business.

Section 70 — Summons

Section 70 empowers the proper officer to summon a person:

• to give evidence; or
• to produce documents or any other thing.

A summons ordinarily requires the person to attend before the officer at the place specified.

It is not an authority for the officer to enter the premises of the registered person.

Section 68 — Inspection of goods in movement

Section 68 concerns inspection of a conveyance carrying goods.

It is not a general power to enter the place of business of a registered person.

Rule 56 — Accounts and records

Rule 56 requires maintenance and production of accounts and records.

It supports verification obligations, but it is not an independent power of entry.

12. Entry during GST recovery proceedings

Section 79 provides modes for recovery of amounts payable to the Government.

Depending upon the recovery measure adopted, the proper officer may proceed against:

• goods belonging to or under the control of the person;
• movable property;
• immovable property; or
• other property liable to attachment and sale.

Execution of attachment or sale may require the officer to visit the place where the property is situated.

However, this is not an independent visit for audit, verification, inspection or search.

It is an act taken in execution of recovery proceedings and must comply with Section 79 and the applicable recovery rules.

13. Judicial principles governing entry and GST search

Pooran Mal v. Director of Inspection (Investigation), Income Tax, New Delhi, (1974) 1 SCC 345 : (1974) 93 ITR 505 (SC).

The Constitution Bench recognised the validity of statutory search and seizure provisions while emphasising that the power must be exercised in accordance with the safeguards contained in the statute.

Income Tax Officer, Special Investigation Circle-B, Meerut & Anr. v. Seth Brothers & Ors., (1969) 2 SCC 324 : AIR 1970 SC 292 : (1969) 74 ITR 836 (SC).

The Supreme Court held that a search authorisation must be exercised strictly in accordance with law. The officer must act honestly, bona fide and for the purpose for which the power is conferred.

An irregularity does not authorise indiscriminate interference with the business or possession of the person searched.

State of Rajasthan v. Rehman, AIR 1960 SC 210 : 1960 Cri LJ 286.

The Supreme Court explained that the statutory condition of “reason to believe” is a safeguard against arbitrary exercise of search power.

The belief must be that of the designated authority and must precede the authorisation.

Radha Krishan Industries v. State of Himachal Pradesh & Ors., (2021) 6 SCC 771 : 2021 SCC OnLine SC 334.

Though the principal controversy concerned provisional attachment under Section 83, the Supreme Court stressed that coercive statutory powers under GST must be exercised strictly within the conditions prescribed by the Act.

The formation of opinion must be based upon tangible material and must bear a live link with the statutory purpose.

These principles equally reinforce the requirement that inspection, search, seizure and access must remain within the authority granted by the statute.

14. How should the registered person act when GST officer visits?

The registered person should remain respectful and cooperative, but should first identify the legal character of the visit.

At the commencement of the visit

The person in charge should request:

• identity cards of the officers;
• name, designation and office of each officer;
• copy of the written authorisation;
• Document Identification Number, wherever applicable;
• section or rule under which the visit is being undertaken; and
• the name and designation of the authorising proper officer.

The person should not obstruct a lawfully authorised officer.

At the same time, cooperation does not require surrender of statutory safeguards.

Immediate internal action

Officer arrives

↓

Verify identity and authorisation

↓

Inform authorised signatory and professional adviser

↓

Identify provision invoked

↓

Nominate responsible persons to accompany officers

↓

Maintain a contemporaneous record

The registered person should nominate:

• one senior responsible employee;
• one person familiar with accounts and records; and
• one person to maintain a written record of events.

During physical verification

Where the visit is under Rule 25:

• show the declared place of business;
• show the activities carried on at the place;
• provide documents relevant to the registration particulars;
• facilitate photographs required for FORM GST REG-30; and
• ensure that the visit does not impermissibly assume the character of search or seizure.

During audit

Where the visit is under Section 65:

• verify FORM GST ADT-01;
• make records available systematically;
• provide explanations through authorised and informed persons;
• retain copies of records furnished;
• avoid speculative answers; and
• request reasonable time where a record is not immediately available.

The registered person should ensure that the officer is provided the facilities contemplated by Section 65 and Rule 101.

During inspection or search

Where the visit is under Section 67:

• examine FORM GST INS-01;
• verify the name of the taxable person and the premises;
• verify whether the authorisation is for inspection or search;
• ensure the presence of independent witnesses where search proceedings are undertaken;
• remain present through authorised representatives;
• maintain a record of rooms, cupboards, computers and documents examined;
• seek an inventory of goods or documents taken;
• obtain a copy of the panchnama;
• obtain FORM GST INS-02 where seizure is made; and
• obtain FORM GST INS-03 where an order of prohibition is issued.

No document should be signed without reading it completely.

Blank papers or incomplete statements should never be signed.

Corrections should be made before signature and initialled by all concerned.

15. Statements during the visit of GST Officer

A person must state the truth and produce the records lawfully required.

At the same time:

• answers should be confined to facts within personal knowledge;
• estimates or assumptions should be avoided;
• a person should not adopt a statement prepared by another person without verification;
• questions not understood should be clarified;
• calculations should be checked before acceptance; and
• a copy of the signed statement should be requested.

Section 70 proceedings are deemed judicial proceedings. The seriousness of a statement should therefore never be underestimated.

16. GST Payment during inspection or search

A registered person should distinguish between:

• ascertainment of liability;
• admission of liability; and
• voluntary payment.

No payment should be represented as voluntary unless it is made after informed consideration and without coercion.

Where the registered person disputes the liability, the objection should be recorded in writing.

Payment made through FORM GST DRC-03 does not authorise an officer to describe a disputed liability as admitted merely because proceedings were taking place at the premises.

17. Documents and digital records

Where computers, programs or software are examined:

• access should be facilitated within the statutory authorisation;
• a record should be kept of data copied or devices taken;
• business continuity and data integrity should be protected;
• privileged professional communications should be separately identified;
• original records should not be surrendered without acknowledgement; and
• copies of documents taken should be retained wherever possible.

Section 71 expressly includes computers, computer programs and computer software within the material which may be inspected for the purposes specified in that provision.

18. Conduct to be avoided

The registered person should not:

• prevent or obstruct lawful access;
• conceal, remove or destroy goods or documents;
• alter books or digital records after commencement of proceedings;
• provide false information;
• sign blank or incomplete papers;
• make unverified admissions;
• argue aggressively with the officers; or
• allow unauthorised employees to offer explanations on technical issues.

The correct approach is:

Cooperate with lawful authority, preserve the record, and insist courteously upon compliance with the Act and the Rules.

19. Final practical table

Type of visit	What should be verified immediately?
Registration verification	Rule 9/Rule 25 purpose and FORM GST REG-30 procedure
Audit	FORM GST ADT-01 and fifteen working days’ notice
Inspection	FORM GST INS-01 and authorisation under Section 67(1)
Search	FORM GST INS-01, authority under Section 67(2), witnesses and panchnama
Seizure	Inventory and FORM GST INS-02
Prohibition on dealing with goods	FORM GST INS-03
Access to business premises	Written authorisation under Section 71
Recovery visit	Recovery order, demand particulars and applicable recovery provision

20. Conclusion

A GST officer does not possess an unrestricted power to enter the premises of a registered person.

The CGST law provides five principal routes:

Rule 9 read with Rule 25

↓

Pre-registration physical verification

Rule 25

↓

Post-registration physical verification

Section 65 read with Rule 101

↓

Audit at the place of business

↓

Section 67 read with Rule 139

↓

Inspection, search and seizure

Section 71

↓

Access to business premises

Each power has a distinct purpose, authority and procedure.

The registered person should neither obstruct a lawful visit nor treat every visit as an unrestricted search.

The sound professional response is to:

• verify the identity and authority of the officers;
• identify the precise statutory provision;
• cooperate within the scope of that provision;
• preserve a contemporaneous record;
• make only verified statements;
• obtain copies of all documents prepared or taken; and
• place objections on record wherever the exercise exceeds the authority granted by law.

In GST administration, the balance is not between cooperation and resistance.

It is between lawful cooperation and informed protection of statutory rights.

Disclaimer: This article is intended for professional and academic discussion. The legality of a visit depends upon the provision invoked, the authority of the officer, the written authorisation, the purpose of the visit and compliance with the procedure prescribed under the CGST Act and the CGST Rules. The registered person should obtain fact-specific professional advice where the visit assumes the character of inspection, search, seizure or investigation.