CBIC Halts GST Arrests, Curbs Transit Checks & Sets ₹10,000 SCN Floor — Instruction 02/2026

Instruction: CBIC No. 02/2026-GST, dated 30 Oct 2026
Effective: Immediately, as an interim measure
What changes: No GST arrests · curbed transit checks · ₹10,000 SCN floor
Status: Administrative directive — statutory amendments still targeted for 1 Apr 2027

The short version

CBIC has issued Instruction No. 02/2026-GST (30 October 2026) telling all Central GST field formations to act on three major 57th-Council reforms right away — without waiting for the law to be amended.
No more GST arrests: following the recommendation to omit Section 69, CGST formations are directed to carry out no further arrests under GST.
Transit checks reined in: a vehicle can be intercepted only on specific intelligence authorised in writing by a Joint Commissioner or above, and goods in pure transit through a State must be let through unhindered — no confiscation of in-transit goods under Section 130.
₹10,000 floor on notices: no Show Cause Notice where the total involved (CGST + SGST/UTGST + IGST + Cess) is below ₹10,000.
Important: this is an administrative instruction implementing the reforms early. The underlying statutory amendments are still targeted for 1 April 2027 — but field officers must follow these directions from now.

We told you the big GST 2.0 enforcement reforms were coming — arrest powers going, transit checks tightened, a floor on low-value notices — but on paper they weren't due until the GST Acts were amended, targeted for 1 April 2027. The CBIC has now jumped ahead of its own timeline. Through Instruction No. 02/2026-GST, it has directed Central GST officers to implement these three changes immediately as an interim trade-facilitation measure, pending the legislative amendments. For businesses, that means relief on the ground starts now — here's exactly what's changed and how far it goes.

1. A complete halt to GST arrests

The 57th GST Council recommended withdrawing the arrest power by omitting Section 69 of the CGST Act. Rather than wait for Parliament, the Board has directed all CGST field formations that no further arrests may be carried out under GST. In practice, the department has instructed its own officers to stop using the arrest power ahead of its formal removal.

2. A major overhaul of e-way bill transit checks

Pending amendments to Sections 68, 129 and 130, the CBIC has set strict new protocols for intercepting and inspecting vehicles in transit — targeting the "roving check" problem that has long frustrated transporters:

Intelligence + senior authorisation only. A conveyance can be intercepted only on specific intelligence, duly authorised by an officer not below the rank of Joint Commissioner, who must record the "reasons to believe" in writing.
Jurisdictional bar. The intercepting officer may inspect — and detain/seize under Section 129 — only if the supplier or recipient is registered or located within that officer's State/UT.
Pure transit passes unhindered. If neither supplier nor recipient belongs to the officer's State/UT, the vehicle and goods must be allowed to pass. Even if the officer suspects a contravention, they can only pass the information to the jurisdictional officer — not detain.
Exception — undocumented goods. Regardless of jurisdiction, the officer may inspect/detain/seize only where neither an e-way bill nor any origin/destination document is produced.
No other detentions; no transit confiscation. Goods can't be detained for any reason beyond those above, and goods/conveyances in transit shall not be confiscated under Section 130.

Why this matters for transporters and traders

This directly tackles the most common on-road hardship: a vehicle legitimately passing through a State being stopped, inspected and detained by local officers over minor or jurisdictionally-irrelevant issues. Under the new protocol, pass-through traffic with proper documents should move freely, and detention/seizure is confined to genuinely undocumented consignments or where the officer's own State has the tax stake. Keep your e-way bill and origin/destination documents in order and the grounds for detention shrink dramatically.

3. A ₹10,000 minimum threshold for Show Cause Notices

To cut low-value litigation, the Council recommended amending Sections 73, 74 and 74A to introduce a minimum monetary threshold. Pending that amendment, CBIC has directed officers that no SCN may be issued where the total amount involved is below ₹10,000. That ₹10,000 is the cumulative sum across the CGST, SGST/UTGST, IGST and Compensation Cess heads — not ₹10,000 per Act.

At a glance

Reform area	Provision(s)	Interim directive (effective now)
Arrests	Section 69 (proposed omission)	Complete stop to further GST arrests by CGST formations
Vehicle interception	Section 68	Only on specific intelligence with written "reasons to believe" authorised by a Joint Commissioner+
Transit inspection & seizure	Section 129	Only if supplier/recipient is in the officer's State/UT — unless both e-way bill and origin/destination docs are absent
Out-of-State transit	Sections 68 & 129	If neither party belongs to the State/UT, vehicle passes unhindered; info shared with jurisdictional officer
Transit confiscation	Section 130	No confiscation of goods/conveyances in transit
SCN monetary floor	Sections 73, 74 & 74A	No SCN if combined tax/cess is below ₹10,000

The important caveat: an instruction, not yet a law change

This is the nuance to keep in mind. Instruction No. 02/2026-GST is an administrative directive — it binds how Central GST officers act, and it delivers real, immediate relief. But it is not a statutory amendment. Section 69 still sits on the statute book until Parliament omits it; the ₹10,000 threshold and the transit-check changes likewise become part of the law only when the CGST and State GST Acts are amended, which remains targeted for 1 April 2027.

What the "administrative" nature means in practice

Two things follow. First, State GST officers aren't automatically bound — CBIC has forwarded the instruction to the GST Council Secretariat so States can issue parallel instructions; until your State does, State-tax field conduct may differ. Second, because it's a direction to officers rather than a change in the law, its interim nature and the eventual statutory text will govern edge cases. For everyday compliance, though, the message from the Centre is clear and immediate: these reliefs apply now.

What businesses should do

Transporters — keep documents tight. Carry a valid e-way bill and clear origin/destination documents. With those in order, pass-through detentions should fall away, and the grounds for seizure narrow to genuinely undocumented goods.
Know your rights at an interception. Interception needs specific intelligence authorised by a Joint Commissioner+. For pure transit through a State where neither party is registered/located, the vehicle should be let through.
Watch for sub-₹10,000 notices. If you receive an SCN where the combined tax/cess is below ₹10,000, it runs against this instruction — flag it.
Track your State's parallel instruction. For State-tax matters, check whether your State has issued its own instruction mirroring these directions.
For pending arrest/notice matters, get advice. This instruction governs fresh action by officers; how it interacts with proceedings already underway depends on the facts — have those assessed.

Frequently asked

Have GST arrest powers been abolished?

Not legally yet. The arrest power under Section 69 is proposed to be omitted (targeted for 1 April 2027). But via Instruction No. 02/2026-GST, CBIC has directed Central GST officers to carry out no further arrests under GST with immediate effect — an administrative halt ahead of the statutory change.

Can my goods vehicle still be stopped and checked in transit?

Only on specific intelligence authorised in writing by a Joint Commissioner or above. If neither the supplier nor the recipient is registered/located in the intercepting officer's State/UT, the vehicle must be allowed to pass — unless no e-way bill and no origin/destination document is produced at all.

Is the ₹10,000 SCN threshold per Act or combined?

Combined. The ₹10,000 is the cumulative total across CGST, SGST/UTGST, IGST and Compensation Cess — not ₹10,000 under each Act separately. Below that total, no SCN is to be issued.

Does this instruction bind State GST officers too?

Not automatically. It directs Central GST formations. CBIC has sent it to the GST Council Secretariat so States can issue parallel instructions; until your State does, State-tax field practice may vary.

When do these reforms become part of the law itself?

The statutory amendments to the CGST and State GST Acts are targeted for 1 April 2027. This instruction implements the reforms administratively in the interim, so the relief is effective now for Central GST.

Facing a GST notice, detention or enforcement action?

efiletax helps you apply these new protections correctly — from challenging a sub-₹10,000 notice to handling transit detentions and ongoing proceedings — so you get the relief the reforms intend.

Talk to our GST team

Disclaimer: This article summarises CBIC Instruction No. 02/2026-GST dated 30 October 2026, directing Central GST field formations to implement — on an interim basis, pending statutory amendments — the 57th GST Council recommendations on halting GST arrests (Section 69), restricting e-way bill interception and detention (Sections 68, 129, 130), and a ₹10,000 minimum threshold for Show Cause Notices (Sections 73, 74, 74A). It is an administrative instruction, not a statutory amendment; the underlying legal changes remain targeted for 1 April 2027, and State GST formations may issue parallel instructions separately. This is provided for general understanding, is current as at the date of publication, and is not legal or tax advice — please verify the current position and consult a qualified professional before acting. Talk to efiletax if you need help.