The GST department has strong powers to enforce tax laws, including the ability
to temporarily freeze the bank accounts of registered taxpayers during
investigations of possible tax evasion or fraud.
This power comes from Section 83 of the Central GST Act, 2017 and Rule 159 of
the GST Rules. It is meant as a protective measure and should only be used in
serious cases where government revenue is at risk.
Officials say that freezing accounts is not meant to be a routine action.
It is a temporary safeguard used only when serious irregularities are suspected.