CBIC Instruction 02/2026-GST: No GST Arrests, E-Way Bill Checks Limited, No Notice Below ₹10,000
CBIC Instruction 02/2026-GST dated 30 October 2026: no further GST arrests, narrow e-way bill interception and no show cause notice below ₹10,000, until the law is amended.
CBIC Instruction No. 02/2026-GST, dated 30 October 2026, changes how central GST officers will behave on the ground, even though the law has not yet been amended. It tells CBIC field formations to make no further arrests under GST, to intercept goods in transit only in narrow, authorised cases, and not to issue show cause notices where the amount involved is below ₹10,000. The directions are interim and follow the recommendations of the 57th GST Council meeting held on 8 October 2026.
| Item | Details |
|---|---|
| Instruction | Instruction No. 02/2026-GST dated 30 October 2026, issued by the GST Policy Wing of CBIC |
| Addressed to | CBIC (central tax) field formations |
| Why | To give early effect to the 57th GST Council recommendations until the CGST Act is amended |
| Status | Interim administrative directions. The Act amendments are still to come into force |
What CBIC Instruction 02/2026-GST Says
1. No further arrests under GST
Pending the legislative amendment, CBIC has directed that no further arrests be made under GST. The Council had recommended omitting the arrest provision, Section 69 of the CGST Act. Until the Act is amended, the section remains on the statute book, but central field officers have been told not to use it.
2. E-way bill interception and verification only in specified cases
The instruction narrows when a vehicle carrying goods can be stopped and checked. As reported, interception is limited to authorised, intelligence-based cases. Commentators report that it needs specific intelligence and authorisation from an officer of at least Joint Commissioner rank, with safeguards on jurisdiction and on how goods in transit are treated. Read the instruction itself for the exact conditions before relying on any one summary.
3. No show cause notice below ₹10,000
Central officers are directed not to issue show cause notices under Sections 73, 74 and 74A of the CGST Act where the aggregate tax involved is below ₹10,000. Reports describe the amount as the total of CGST, SGST, IGST, UTGST and compensation cess. A demand of ₹10,000 or more can still be taken up by notice.
What This Means for Taxpayers
- Tax is still payable. The ₹10,000 limit stops notices. It does not waive the tax. Correct genuine mismatches and pay what is due.
- If you get a notice below ₹10,000 from a central tax office, reply in time and cite Instruction No. 02/2026-GST dated 30 October 2026. Keep the acknowledgement of your reply.
- Transporters and dealers: keep e-way bills and invoices in order, because genuine intelligence-based checks can still happen.
- Arrests: the instruction stops arrests by central formations for now. The law itself has not changed yet.
Limits of the Instruction
- Central officers only. The instruction is addressed to CBIC field formations. State tax officers act under their own State instructions, so check what your State tax department has issued.
- It is not the law. The changes to Sections 69, 73, 74 and 74A, and to the e-way bill provisions, need amendments. One report suggests these are proposed from 1 April 2027, but check the Finance Act and notifications for the actual date.
- It can be changed or withdrawn by CBIC, as it is an administrative direction.
How It Fits with the Other 57th Council Changes
The 57th Council meeting focused on process reforms and made no change to the main GST rate slabs. Read the instruction together with our guides on the 57th GST Council recommendations, GST notices: types, time limits and how to reply and Circular 258 on show cause notices, adjudication and appeals. If you have received a GST notice, see our GST and income tax notice reply service.
Official Documents and Links
- CBIC Tax Information Portal: GST Circulars – use the “Instructions / Guidelines” tab to find Instruction No. 02/2026-GST dated 30 October 2026
- GST portal – for GSTN advisories and notices
Frequently Asked Questions
Has GST arrest power been abolished?
Not yet in the law. CBIC has directed central field formations not to make further arrests as an interim step, while the amendment omitting Section 69 is awaited.
Will I get a notice for a small ITC mismatch under ₹10,000?
Central officers have been directed not to issue show cause notices under Sections 73, 74 and 74A where the amount involved is below ₹10,000. You should still correct the mismatch and keep your records clear.
Does this apply to State GST officers?
The instruction is issued by CBIC to its own field formations. State officers are governed by instructions from their State tax departments.
Can my vehicle still be stopped for an e-way bill check?
Yes, but only in the narrow, authorised cases the instruction allows. Carry valid e-way bills and documents for every consignment.
Related Updates
- GST portal advisories of 1 November 2026: roundup
- Circular 264: Rule 96(10) omission applies retrospectively
- 14-digit e-way bill number from 1 January 2027
Source: CBIC Instruction No. 02/2026-GST dated 30 October 2026, as reported by tax news sites and read with the 57th GST Council recommendations. This article is a plain-language summary for general information. Please read the official instruction before acting.
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