Big Relief for GST Taxpayers as CBIC Changes Arrest and Bail Guidelines to Prevent Arbitrary Actions

The CBIC (Central Board of Indirect Taxes and Customs) has amended GST arrest and bail guidelines, ensuring GST officers cannot arbitrarily arrest registered taxpayers or coerce them into admitting tax liabilities.

Officers must now provide a detailed written explanation of the grounds for arrest in an annexure to the arrest memo and obtain an acknowledgment of understanding from the arrested individual.

The amendment modifies para 4.2.1 of the August 17, 2022 guidelines, ensuring transparency and accountability during arrests under the CGST Act, 2017.

The revised guidelines, notified on January 13, 2025, aim to curb misuse of authority and protect rights of taxpayers.