DGGI Summons Under Section 70: What to Do, What to Say and What to Sign

A summons from the Directorate General of GST Intelligence under section 70 of the CGST Act is a legal requirement to appear, give evidence or produce documents. It is not an accusation, an arrest warrant or a demand. The proceeding is treated as a judicial proceeding, so what you say is recorded, signed and used. How the first appearance is handled often decides the rest of the case.

What the officers are required to follow

The Central Board of Indirect Taxes and Customs issued Instruction 03/2022-23 (GST-Investigation) in August 2022 on how summons are to be used. It requires that:

• a summons by a Superintendent has prior written approval of an officer of the rank of Deputy or Assistant Commissioner, with reasons recorded
• every summons carries a Document Identification Number
• senior management such as the chairman, managing director, chief executive or chief financial officer is not summoned in the first instance, unless there are clear indications of their involvement in the decision that led to loss of revenue
• documents already available on the GST portal, such as returns, are not called for by summons
• the summoning officer is present at the time given, and repeated summons are avoided

For listed companies, public sector undertakings and large corporate groups, Instruction 01/2023-24 goes further: the first step should be an official letter asking for specified information, not a summons, and investigation needs senior approval. These instructions bind the officers administratively. A breach does not void the summons automatically, but it supports a representation to senior officers and, where the process is oppressive, a writ petition.

At the appearance

• Who attends. Where the summons is for documents, an authorised representative can usually attend. Where it is to record a statement of a named person, that person attends.
• Lawyer. There is no right to have a lawyer answer for you or sit in on the questioning. Courts have allowed an advocate to be present within visible distance but out of hearing. Ask for this in writing beforehand.
• Answer from knowledge. Separate what you know personally from what the records show. If you need to check a figure, say so and offer to confirm it in writing. Do not guess.
• Read before signing. Read every page of the statement, have errors corrected and initial the corrections. Ask for a copy.
• Documents. Hand over documents under a covering letter with an index, and keep a stamped copy.
• Payments. Tax cannot be collected by force during an investigation. A voluntary payment is made through Form DRC-03, and CBIC instructions say officers should not pressure a taxpayer to pay during a search or inquiry. If you pay, record that it is under protest where liability is disputed.

If the statement is wrong

A statement recorded under section 70 is admissible, and admissions in it are the usual foundation of the show-cause notice. If a statement was given under pressure or is factually incorrect, retract it promptly, in writing, to the officer who recorded it and to their superior, stating exactly which parts are retracted and why, with supporting records. A retraction made months later in the reply to the notice carries far less weight than one made within days.

When arrest becomes a risk

Arrest under section 69 needs the Commissioner’s authorisation and a reason to believe that a specified offence under section 132 has been committed. The main categories are issuing invoices without supply, availing credit on such invoices, and collecting tax but not paying it for more than three months. Where the tax involved exceeds Rs 5 crore, these offences are cognizable and non-bailable. Between Rs 2 crore and Rs 5 crore they are bailable. A genuine dispute about classification or valuation is not meant to be treated as an arrest matter.

In Radhika Agarwal v. Union of India (2025) the Supreme Court held that anticipatory bail is available in GST matters where there is a real apprehension of arrest, and that the safeguards applicable to arrest, including recorded reasons to believe, apply to GST officers. A summons alone is not normally sufficient ground, so an application needs to show concrete indicators.

What usually follows

1. Further summons for other employees, the accountant, suppliers or customers
2. Possibly a search under section 67, or a provisional attachment of bank accounts under section 83, which lapses after one year
3. A pre-notice intimation in Form DRC-01A, giving a chance to pay or contest
4. A show-cause notice under section 74, or section 74A for 2024-25 onwards
5. Adjudication, then appeal

The period between the first summons and the show-cause notice is when the record is built. Our regulatory representation practice prepares clients for DGGI appearances, responds to summons and attachments, and defends the resulting notices with our GST team.

Written by Vijay Dhawan, Managing Partner, LexVerge LLP. This article is general information, not tax or legal advice. Rates, thresholds and form numbers change; confirm the current position for your facts before acting.