Legal Digest | Why GST authorities can't seize cash
GST authorities cannot seize cash during search operations under normal circumstances because the law does not grant them such powers.
Under Section 67 of the CGST Act, GST officers are allowed to seize only goods, documents, books, or items relevant to proceedings. Courts have clarified that cash does not fall under these categories and therefore cannot be treated as “goods” or “things” for seizure purposes.
Judicial rulings have consistently held that GST law is meant for tax assessment and evidence collection, not for recovery of money during searches. Cash, being money, does not qualify as evidence unless it is directly linked to a specific tax evasion transaction.
High Courts, including Bombay and Calcutta, have ruled against such seizures and ordered authorities to return cash taken during GST searches, stating that such actions go beyond the powers granted under the law.
