Arrest Powers, E-way Bill Checks and the Rs 10,000 Notice Threshold: Now in Effect for Field Officers (2026): Instruction No. 02/2026-GST
CA Meet Dhrangadhariya 
October 30, 2026
CA Meet Dhrangadhariya October 30, 2026
Table of Contents
7 min readTable of Contents
Last updated: 30 October 2026 · Written and reviewed by CA Meet Dhrangadhariya, CSM & Co LLP
Quick summary
Three of the most talked-about reforms from the GST Council’s 57th meeting – no more arrests under GST, far tighter limits on roadside vehicle checks, and a minimum amount before a show cause notice can even be issued – have so far been reported as proposed changes, waiting on a formal amendment to the CGST Act. Instruction No. 02/2026-GST, dated 30 October 2026, changes that: CBIC has now directed its own field officers to actually follow this approach, starting immediately, without waiting for the law itself to change.
New to terms such as “show cause notice” or “e-way bill”? See the technical terms explained in simple words further down.
The reforms the Council recommended – withdrawing arrest powers, rationalising e-way bill interception, and fixing a minimum threshold for show cause notices – all require amending the CGST Act and the corresponding State GST Acts. That legislative process is targeted for 1 April 2027. Recognising that taxpayers would otherwise wait over a year for relief that has already been agreed in principle, the Central Government has directed, as an interim trade-facilitation measure, that CBIC’s own field formations implement these reforms administratively from now, through this instruction – which stays in force only until the actual CGST Act amendments take effect.
The Council recommended withdrawing arrest powers entirely, by omitting section 69 of the CGST Act. Pending that formal omission, the instruction is direct and unqualified:
All CGST field formations are accordingly directed that no further arrests may be carried out under GST.
This mirrors the amendments proposed to sections 68, 129 and 130 of the CGST Act:
The Council recommended amending sections 73, 74 and 74A of the CGST Act to build in a minimum threshold for issuing a show cause notice. The instruction directs that, administratively, show cause notices should not be issued where the amount involved is below Rs 10,000 – computed as the combined total of amounts under the CGST Act, the relevant State/Union Territory GST Act, the IGST Act, and cess under the GST (Compensation to States) Act.
An instruction is not a notification or an amendment – it does not alter the CGST Act’s text. But it directly binds how CBIC’s own officers behave from the date it is issued, which is what actually determines whether a taxpayer is arrested, a truck is stopped, or a small-value notice lands in someone’s inbox. Any earlier commentary – including coverage that described these reforms as “proposed” and said a vehicle stopped “today” would still be handled under the unchanged law – should now be read in light of this instruction: in practice, these restrictions already bind field officers from 30 October 2026, well ahead of the formal 1 April 2027 amendment.
State GST field formations are not automatically bound by this instruction, since it addresses only CBIC’s central tax officers – the instruction’s own covering note asks the GST Council Secretariat to circulate it to State formations, who may issue similar instructions if they consider it appropriate. Taxpayers dealing with State tax officers should confirm whether an equivalent State instruction has been issued before assuming the same protection applies there.
Whether it’s pushing back on a roadside detention that doesn’t meet these conditions, or questioning a show cause notice for an amount under Rs 10,000, this instruction gives taxpayers a concrete, currently-binding basis to do so – please reach out to our team and we will be happy to assist.
| Term | What it means |
|---|---|
| Instruction (CBIC) | An internal administrative directive binding CBIC’s own officers on how to apply the law, as distinct from a notification or an amendment to the Act itself. |
| E-way bill | An electronic document required for moving goods above a certain value, recording the consignment’s details for GST tracking purposes. |
| Section 129 (CGST Act) | The provision governing detention and seizure of goods and conveyances found to be transported in contravention of GST law. |
| Section 130 (CGST Act) | The provision allowing confiscation of goods or conveyances in more serious cases of contravention. |
| Show cause notice (SCN) | A formal notice requiring a taxpayer to explain why a proposed tax demand or other adverse action should not be confirmed against them. |
Not yet. The GST Council’s 57th meeting recommendations on arrest powers, e-way bill interception and the show cause notice threshold are expected to be formally enacted only from 1 April 2027. However, Instruction No. 02/2026-GST, dated 30 October 2026, directs CBIC field officers to follow the new approach administratively, with immediate effect, as an interim trade-facilitation measure pending that amendment.
No. The instruction directs all CGST field formations that no further arrests may be carried out under GST, even though section 69 of the CGST Act – which gives the power to arrest – has not yet been formally omitted. This is an administrative direction to officers, not a change in the statute book.
A conveyance may only be intercepted on the written authorisation of an officer not below the rank of Joint Commissioner, who must record reasons to believe the goods are being moved in contravention of the law. Inspection, detention and seizure under section 129 can only be carried out by an officer with jurisdiction over the supplier or recipient – not by any officer in a transit State the goods merely pass through, unless there is no e-way bill or supporting document at all.
No. The instruction directs that goods or conveyances in transit shall not be confiscated under section 130 of the CGST Act at all, while these interim arrangements remain in force.
Rs 10,000, computed as the combined amount under the CGST Act, the relevant SGST Act, the IGST Act or the UTGST Act, plus any cess under the GST (Compensation to States) Act. Show cause notices under sections 73, 74 or 74A should not be issued where the amount involved is below this threshold.
This article is for general informational purposes only and should not be considered professional advice. Please consult a qualified expert for advice tailored to your specific situation. The author and website owner are not liable for any errors or actions based on this content.
CA Meet Dhrangadhariya October 9, 2026
CA Meet Dhrangadhariya February 12, 2025
CA Meet Dhrangadhariya February 24, 2025
CA Meet Dhrangadhariya October 30, 2026