Important Keywords: Instruction No. 01/2025 – GST, GST arrest guidelines, CGST arrest rules 2025, GST bail process, CBIC arrest instructions, grounds of arrest CGST, Finodha GST legal support,
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Table of Contents
Instruction No. 01/2025-GST
फा. सं. GST/INV/Instructions/21-22
वित्तमंत्रालय
राजस्वविभाग
केन्द्रीय अप्रत्यक्ष करएवंसीमाशुल्कबोर्ड
GST-Investigation Wing
10 वाँ माला, टावर-2,
जीवन भारती बिल्डिंग
कनॉट सर्कस, नई दिल्ली-110001.
दिनांक 13 जनवरी 2025
Instruction No. 01/2025 – GST: GUIDELINES FOR ARREST AND BAIL IN RELATION TO OFFENCES PUNISHABLE UNDER THE CGST ACT, 2017
(Amendment to Instruction No. 02/2022-23 GST (Investigation) dated 17.8.2022)
SUBJECT: GUIDELINES FOR ARREST AND BAIL IN RELATION TO OFFENCES PUNISHABLE UNDER THE CGST ACT, 2017 – REG.
Please refer to Instruction No. 02/2022-23 GST (Investigation) dated 17.8.2022 on the above subject
Hon’ble High Court of Delhi in case of KSHITIJ GHILDIYAL versus DIRECTOR GENERAL OF GST INTELLIGENCE, DELHI [W.P. (CRL) No. 3770/2024], vide judgement dated 16.12.2024, has held that the grounds of arrest have to be communicated in writing to the arrested person. In coming to this conclusion, the Hon’ble High Court has relied on the judgements of Hon’ble Supreme Court the cases of Pankaj Bansal Versus Union of India & Ors., Criminal Appeal Nos. 3051-3052 of 2023 {@ Special Leave Petition (Crl.) Nos. 9220 21 of 2023} dated 3rd October, 2023, and PRABIR PURKAYASTHA Vs STATE (NCT OF DELHI), CRIMINAL APPEAL (D. No. 42896/2023) Judgement dated 15th May, 2024.
In this context it is relevant to note the distinction between ‘reasons for arrest’ and ‘grounds of arrest’ made by the Hon’ble Supreme Court in the case of PRABIR PURKAYASTHA VS STATE (NCT OF DELHI), CRIMINAL APPEAL (D. No. 42896/2023). The relevant para of the said Judgement dated 15th May, 2024, reads as follows:
“49. It may he reiterated at the cost of repetition that there is a significant difference in the phrase ‘reasons for arrest ‘and ‘grounds of arrest . The ‘reasons for arrest ‘as indicated in the arrest memo are purely formal parameters, viz., to prevent the accused person from committing any further offence; or proper investigation of the offence; to prevent the accused person from causing the evidence of the offence to disappear or tempering with such evidence in any manner; to prevent the arrested person for making inducement, threat or promise to any person acquainted with the facts of the case so as to dissuade him from disclosing such facts to the Court or to the Investigating Oficer.
These reasons would comnmonly apply to any person urrested on charge ofu erime whereas the ‘grounds of arrest ‘ would be required to contain all such details in hand of the Investigating Officer which necessitated the arrest of the accused. Simultaneously, the grounds of urrest informed in wrilting must convey to the arrested accused. all basic facts on which he was being arrested so as to provide him an opportunity of defending himself against custodial remand and to seek bail. Thus, the ‘grounds of arrest’ would invariably be personal to the accused and cannot be equated with the ‘reasons of arrest’ which are general in nature.”
In light of the above, Para 4.2.1 of Instruction 02/2022-23 GST (Investigation) dated 17.8.2022 is amended and may be read as follows –
Para 4.2.1 The grounds of arrest must be explained to the arrested person and also furnished to him in writing as an Annexure to the Arrest Memo. Acknowledgement of the same should be taken from the arrested person at the time of service of the Arrest Memo.
To
- Principal Chief Commissioner(s)/ Chief Commissioner(s) of CGST, All Zones.
- Principal Director General [DGGI], New Delhi.
- Webmaster, CBIC (www.cbic.gov.in) for uploading on the website of CBIC under Instructions.
📘 Frequently Asked Questions (FAQs) on Instruction No. 01/2025-GST
Q1: What is Instruction No. 01/2025-GST?
Answer:
It’s an official amendment by CBIC to prior arrest and bail procedures under the CGST Act, 2017. Issued in May 2025, it aligns customs practices with the latest judgments from the Supreme Court and Delhi High Court, emphasizing the mandatory written communication of “grounds of arrest” to the accused.
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Q2: Why was this instruction issued?
Answer:
This update was necessitated by the Delhi High Court’s judgment in Kshitij Gildhiyal v. DGGI (Dec 2024), and key Supreme Court decisions in:
📌 Pankaj Bansal v. Union of India (Oct 2023)
📌 Prabir Purkayastha v. State (May 2024)
These rulings mandated that arrested individuals must receive written grounds of arrest, not just reasons, ensuring fairness under Article 21 of the Constitution.
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Q3: What’s the difference between “reasons for arrest” and “grounds of arrest”?
Answer:
✍️ Reasons for Arrest = Generic parameters like preventing evidence tampering, influencing witnesses, etc.
🧾 Grounds of Arrest = Personalized facts explaining why this individual is being arrested — essential for defending bail or opposing custody.
These must be shared in writing and acknowledged by the accused.
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Q4: What has been amended in Para 4.2.1 of the previous instruction?
Answer:
Para 4.2.1 now mandates:
📝 Grounds of arrest must be:
— Clearly explained to the accused
— Given in writing as an annexure to the arrest memo
— Acknowledged by signature at the time of arrest
This replaces the previous non-written protocol from Instruction 02/2022-23 GST.
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Q5: How does this protect GST-registered taxpayers?
Answer:
This instruction ensures that:
✅ Arrests are not arbitrary
✅ Legal due process is followed
✅ Accused can immediately challenge detention or apply for bail
✅ Investigating officers are held accountable for arrests
Need GST legal assistance? Finodha can guide you: https://finodha.in/gst-compliance/
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Q6: Who must comply with this new guideline?
Answer:
This applies to:
🛃 All DGGI, CGST Zones, GST Commissionerates
📋 GST Intelligence Units conducting arrests
👥 Any CGST official authorized to arrest under Section 69 of the CGST Act
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Q7: What rights does an arrested person have under CGST now?
Answer:
🧾 Right to written grounds of arrest
📄 Right to receive a copy of the arrest memo
🛑 Right to remain silent
⚖️ Right to legal counsel and to apply for bail without delay
📌 Right to challenge unlawful arrest in court
Finodha helps you protect your compliance profile: https://finodha.in/online-gst-registration/
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Q8: What happens if the officer fails to provide written grounds?
Answer:
Failure to comply with this instruction can lead to:
🚨 Judicial scrutiny and case dismissal
❌ Arrest deemed illegal
⚖️ Court-directed compensation
📝 Internal disciplinary action against the officer
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Q9: How can Finodha assist if a GST-related arrest is anticipated or made?
Answer:
Finodha offers:
📁 Legal documentation review
⚖️ Guidance on bail filings
📋 Pre-arrest advisory
🧾 Representation before GST authorities
Need fast expert legal support? Visit: https://finodha.in/gst-return-filing/
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Q10: Where can officers and professionals find this updated instruction?
Answer:
✔ Instruction No. 01/2025-GST is available on the CBIC website under “Instructions”
✔ Shared with all CGST Zones and the Principal Director General of DGGI
✔ Finodha also interprets all such notifications at: https://finodha.in/gst-compliance/
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✅ Conclusion:
Instruction No. 01/2025 – GST is a significant step toward protecting taxpayer rights and bringing GST enforcement in line with constitutional safeguards and Supreme Court directives.
📢 For compliance, legal consultation, or risk protection during GST audits or proceedings, choose the trusted guidance of Finodha: https://www.finodha.in
Download PDF: Instruction No. 01/2025 – GST
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