GST dept can block bank accounts over suspected evasion; know the triggers and how to lift the freeze

The Goods and Services Tax (GST) department possesses wide-ranging enforcement powers, including the ability to temporarily freeze the bank accounts of registered taxpayers during investigations involving alleged tax evasion or fraud. This authority, derived from Section 83 of the Central GST Act, 2017 and Rule 159 of the GST Rules, is intended to be a protective measure—used sparingly and only in exceptional circumstances where government revenue may be at risk. Officials stress that provisional attachment is not meant to be a routine coercive action but a financial safeguard applied when serious irregularities are suspected. Advertisement

Bank Accounts blocked

According to the GST framework, bank account attachment is most commonly invoked in cases involving fake Input Tax Credit (ITC