ENF-01 is issued under Section 70, Section 67 Inquiry. This guide explains the legal basis, common grounds, procedural steps, and how GST Notice AI drafts your reply in under 60 seconds with relevant citations and defences.
Enforcement notices under Section 67 (inspection, search, seizure) and Section 70 (summons) of the CGST Act are the most sensitive instruments in the GST ecosystem. Though not always labelled ENF-01 in every state, they all follow a common framework: the department has formed a prima facie view of tax evasion and is gathering evidence — including by summoning the taxpayer, searching premises, and seizing documents or goods.
Legal Section
Section 70, Section 67 Inquiry
Appearance Date
As Specified
Reply Deadline
As Specified in Summons
Risk Level
High — Criminal Proceedings Possible
Follow-Up
Summons / Arrest / Attachment
Issuing Authority
Enforcement Officer / DGGI
Intelligence on Fake Invoicing / Circular Trading
DGGI or State Enforcement receives specific intelligence indicating issuance of invoices without underlying supply, circular trading, or fake ITC chain.
Third-Party Statement Implicating the Taxpayer
Statement recorded from a supplier, customer, or transporter under Section 70 names the taxpayer in an alleged evasion chain.
Analytical Red Flags
Sudden spikes in ITC availment, disproportionate inter-state supplies, or GSTR-1 vs GSTR-3B patterns flagged by the BIFA / analytics unit.
Cross-Check of Books During Inspection
Information from inspection under Section 67(1) reveals discrepancies warranting deeper Section 70 inquiry and summons.
Do not ignore or delay. Non-appearance on summons invites coercive process (Section 122 penalty, Section 132 prosecution). Appear at the stated date or seek adjournment in writing citing specific reasons.
Engage experienced GST counsel immediately. Enforcement proceedings can escalate to arrest under Section 69 — retain counsel before appearing.
Study the summons: note the questions expected (if specified), documents demanded, and the section invoked. Gather all documents in an organised manner before appearing.
During appearance: answer only what is asked, do not volunteer information, sign statements only after careful reading, request copies of all statements recorded, and exercise the right to be accompanied by counsel where permitted.
If premises are searched under Section 67, obtain a copy of the search warrant, insist on two independent witnesses (panchas), and get a signed panchnama listing every document or item seized.
File a writ if the action exceeds jurisdiction or violates procedure. In parallel, consider applying for anticipatory bail if arrest under Section 69 is apprehended.
Appearance Kit
Prepares the bundle — latest returns, reconciliations, bank statements, buyer-supplier KYC — to take to the enforcement officer, anticipating likely questions.
Statement Review
After the appearance, reviews the recorded statement against the full factual record and flags any admissions that need to be retracted in writing under Section 70(2).
Parallel Track Planner
Coordinates the GST inquiry with parallel Income Tax, PMLA, or CBI actions if any, and ensures positions taken are consistent across proceedings.
Upload your ENF-01 notice. AI drafts the reply, computes deadlines, and cites every applicable section and rule.
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