GST Instruction No 02/2026
The Central Board of Indirect Taxes and Customs (CBIC) has issued instructions to implement certain recommendations made by the GST Council in its 57th meeting held on 08.10.2026.The recommendations include removal of arrest provisions under GST, changes in e-way bill inspection and verification procedures, and introduction of a minimum threshold of ₹10,000 for issuing Show Cause Notices (SCNs).
The GST Council recommended implementing the legislative amendments from 01.04.2027. However, the Central Government has decided to implement these measures through instructions to CBIC field formations in the meantime. These instructions will remain in force until the recommended amendments to the CGST Act, 2017 come into effect.
1. Withdrawal of Arrest Powers under GST: The GST Council has recommended removing Section 69 of the CGST Act, 2017, which provides powers of arrest under GST. Accordingly, CBIC has instructed all CGST field formations that no further arrests should be carried out under GST.
2. Changes in E-Way Bill Inspection and Verification Procedures
The GST Council has recommended amendments to Sections 68, 129 and 130 of the CGST Act, 2017, to simplify the procedure for interception, inspection, detention and seizure of goods and vehicles during transportation. Accordingly, CBIC has issued the following instructions:
Interception of Vehicles Only on Specific Information : A vehicle carrying goods should be intercepted only when there is specific intelligence indicating a possible violation of GST provisions. Such interception must be authorised by an officer not below the rank of Joint Commissioner, who must record in writing the reasons for believing that the goods are being transported in violation of the CGST Act or Rules.
Inspection and Detention Within Jurisdiction : The officer intercepting a vehicle may inspect the vehicle and goods only when the supplier or recipient is registered or located within the State or Union Territory under the officer’s jurisdiction. If after inspection of goods it is found that the goods being transported or stored while they are in transit, are in contravention of the provisions of CGST Act, 2017 or the rules made thereunder, the officer may detain or seize the goods under Section 129 of the CGST Act, 2017.
Cases Where Supplier and Recipient Are Outside Jurisdiction: Where neither the supplier nor the recipient is registered or located within the State or Union Territory under the jurisdiction of the authorising officer, and the intercepting officer believes that the goods are being transported in violation of GST provisions, the officer shall:
Allow the vehicle and goods to proceed without obstruction.
Forward the relevant information to the proper officer having jurisdiction over the supplier or recipient.
The concerned jurisdictional officer shall examine the information and take necessary action.
Cases Where E-Way Bill and Supporting Documents Are Not Available : Where no e-way bill has been generated and no documents are produced to establish the origin or destination of the goods, the intercepting officer may inspect, detain or seize the goods or vehicle, irrespective of the jurisdiction of the supplier or recipient.
Restriction on Detention and Seizure : Goods and vehicles in transit shall not be detained or seized for any reason other than those specified in the above instructions.
 No Confiscation under Section 130: Goods or vehicles in transit shall not be confiscated under Section 130 of the CGST Act, 2017.
3. Minimum Threshold of ₹10,000 for Issuance of Show Cause Notices
To reduce litigation involving small amounts and the compliance burden on taxpayers, the GST Council has recommended amendments to Sections 73, 74 and 74A of the CGST Act, 2017.
Accordingly, CBIC has instructed that Show Cause Notices should not be issued where the total amount involved is below ₹10,000. For calculating this limit, the combined amount under CGST, SGST, IGST, UTGST and GST Compensation Cess shall be considered. The restriction applies where the total amount involved is less than ₹10,000.
Implementation and Monitoring
The Principal Chief Commissioners and Chief Commissioners have been instructed to monitor the implementation of these directions.
