Section 136 at a Glance
Contents
1. Statutory Text of Section 136
A statement made and signed by a person on appearance in response to any summons issued under section 70 during the course of any inquiry or proceedings under this Act shall be relevant, for the purpose of proving, in any prosecution for an offence under this Act, the truth of the facts which it contains,—
(a) when the person who made the statement is dead or cannot be found, or is incapable of giving evidence, or is kept out of the way by the adverse party, or whose presence cannot be obtained without an amount of delay or expense which, under the circumstances of the case, the court considers unreasonable; or
(b) when the person who made the statement is examined as a witness in the case before the court and the court is of the opinion that, having regard to the circumstances of the case, the statement should be admitted in evidence in the interest of justice.
IndiaCode records Section 136 as in force as of September 2026. The provision specifically cross-references Section 70, which is the GST provision dealing with summons to give evidence and produce documents. citeturn0search1
2. Section 136 Explained in Simple Language
During a GST investigation or inquiry, an authorised officer can issue a summons under Section 70 requiring a person to appear, give evidence or produce documents. A person who appears may make a statement, and the statement may be signed.
Section 136 addresses a later and different stage: GST prosecution before a criminal court.
The section identifies circumstances in which the signed statement from the earlier GST proceeding can be relevant for proving the truth of the facts contained in that statement.
This distinction matters because an inquiry before a tax authority and a criminal prosecution before a court are not the same proceeding.
3. Connection Between Section 70 and Section 136
Section 136 cannot be understood properly without Section 70.
| Provision | Subject | Practical role |
|---|---|---|
| Section 70 | Power to summon persons to give evidence and produce documents | Provides the statutory basis for the summons during GST inquiry/proceedings. |
| Section 136 | Relevancy of statements under certain circumstances | Addresses the evidentiary relevance of a statement made and signed after appearance in response to such a summons. |
A simple way to remember the relationship is:
4. The Two Circumstances Specifically Mentioned in Section 136
Section 136 identifies two situations in which the statement is relevant for the purpose described by the section.
| Situation | What the law says | Simple explanation |
|---|---|---|
| (a) Maker unavailable | The person is dead, cannot be found, is incapable of giving evidence, is kept out of the way by the adverse party, or cannot be brought before the court without unreasonable delay or expense. | The law recognises specified circumstances where the person who made the statement is not practically available to give evidence. |
| (b) Maker examined | The person is examined as a witness before the court and the court considers, having regard to the circumstances, that the statement should be admitted in evidence in the interest of justice. | The person appears as a witness in the prosecution and the court decides whether the earlier statement should be admitted. |
5. Situation (a): The Person Who Made the Statement Is Unavailable
The first situation covers several different forms of unavailability. The statutory wording is deliberately specific.
5.1 The person is dead
If the person who made the statement has died, the statute recognises that the person cannot appear as a witness. Subject to the requirements of the provision and the court's assessment, the statement can be relevant for proving the truth of the facts it contains.
5.2 The person cannot be found
This covers circumstances where the maker cannot be located. It is not the same as merely saying that the person is difficult to contact; the actual facts and court's assessment matter.
5.3 The person is incapable of giving evidence
The provision also addresses situations where the maker is incapable of giving evidence. The reason and circumstances must be considered in the actual case.
5.4 The person is kept out of the way by the adverse party
The section expressly mentions a situation where the person is kept out of the way by the adverse party.
5.5 Presence cannot be obtained without unreasonable delay or expense
Even where the person is not in one of the earlier categories, the court may consider whether obtaining the person's presence would involve an amount of delay or expense that is unreasonable in the circumstances.
6. Situation (b): The Person Is Examined as a Witness
The second situation is different. Here, the person who made the statement is examined as a witness in the case before the court.
Even then, Section 136 does not state that the earlier statement must automatically be admitted. The court must consider the circumstances of the case and be of the opinion that the statement should be admitted in the interest of justice.
Why this matters
- The person who made the earlier statement is before the court as a witness.
- The court considers the circumstances of the case.
- The court determines whether the earlier statement should be admitted in evidence in the interest of justice.
7. What Does “For Proving the Truth of the Facts Which It Contains” Mean?
This phrase is important because the section is not merely concerned with the fact that a person once made a statement.
The statutory wording says the statement shall be relevant for the purpose of proving, in a prosecution, the truth of the facts which it contains, when one of the specified situations exists.
| Question | Illustration |
|---|---|
| What was stated? | A person stated that certain invoices were created by a particular process. |
| Who made it? | The person appeared in response to a Section 70 summons and signed the statement. |
| Under what proceeding? | The statement was made during an inquiry/proceeding under the CGST Act. |
| What later happens? | A prosecution for an offence under the Act is brought before a court. |
| Does Section 136 apply? | The court examines whether one of the statutory situations in clause (a) or (b) exists. |
The provision therefore creates a statutory route for the relevance of a particular category of earlier statement in specified circumstances.
8. What Section 136 Does Not Mean
It does not mean every GST statement is automatically admissible.
The statement must fit the statutory description: it must be made and signed by a person on appearance in response to a summons issued under Section 70 during an inquiry or proceeding under the Act, and one of the circumstances in Section 136 must apply.
It does not mean every statement proves every allegation.
The section refers to proving the truth of the facts contained in the statement. The exact facts, their relevance and their evidentiary significance remain matters for the court.
It does not itself create a criminal offence.
Section 136 is an evidentiary provision. The underlying offence must come from another provision of the Act.
It does not replace Section 70.
Section 70 is the provision concerning summons. Section 136 deals with the relevance of statements made in response to such summons.
It does not make an inquiry and prosecution the same proceeding.
A GST investigation/inquiry and a criminal prosecution have different procedural stages and purposes.
9. From GST Summons to Criminal Prosecution: How Section 136 Can Become Relevant
This sequence shows why Section 136 is important for both investigating authorities and taxpayers: statements made during the earlier inquiry can have significance at a later prosecution stage.
10. Practical Examples
An authorised person of a supplier appears in response to a Section 70 summons and signs a statement about the issuance of certain invoices. A prosecution is later initiated. If the statutory conditions of Section 136 are satisfied, the statement may be relevant for proving the truth of facts contained in it.
A person who made and signed a Section 70 statement subsequently dies. In a later prosecution, the court considers whether the circumstances fall within Section 136(a). The death of the maker is expressly one of the situations mentioned in the section.
A person who made the statement cannot subsequently be located. The court considers the statutory requirements and whether Section 136(a) applies.
The maker appears as a witness in the prosecution. The court considers the earlier signed statement and decides, having regard to the circumstances, whether it should be admitted in evidence in the interest of justice under Section 136(b).
A person states during the GST inquiry that certain invoices were issued without corresponding supplies. If a prosecution later relies on those facts, Section 136 may become relevant subject to its statutory conditions.
An accounts employee explains how particular entries were created and signs a statement in response to a summons. If a later prosecution concerns those entries, the statement's evidentiary relevance can become an issue under Section 136.
A prosecution contains a signed statement along with invoices, bank records, ERP logs and other documents. Section 136 concerns the statutory relevance of the statement; the court assesses the case and evidence as a whole according to law.
A statement concerns a genuine commercial transaction where the parties disagree about the classification or documentation. The existence of a statement does not by itself establish that a criminal offence occurred. The underlying offence and all relevant evidence must still be considered.
A person gives a statement during an inquiry and later provides clarification when examined in court. The court considers the statement, testimony and circumstances under the applicable evidentiary rules.
A finance employee gives a signed statement concerning a company's GST records. A later prosecution names the company and certain individuals. Section 136 may become relevant to the statement, while Section 137 and the specific facts determine issues relating to company and individual liability.
11. Business & Finance-Team Precautions
Section 136 shows why a company should treat a GST summons and the resulting statement as a serious legal-compliance event rather than as an ordinary clarification email.
| Control | Recommended practice |
|---|---|
| Summons register | Maintain a central log of summons received, date, issuing authority, subject and response status. |
| Document preservation | Preserve the records relevant to the subject matter before making changes to the underlying files. |
| Authorised representative | Identify the appropriate person to coordinate the response and obtain professional legal advice where necessary. |
| Chronology | Prepare a factual timeline of transactions, filings, reconciliations and communications. |
| Statement accuracy | Persons appearing should understand the questions and give accurate answers based on their actual knowledge. |
| Supporting documents | Keep invoices, contracts, ledgers, GST returns, reconciliations, payment records and other relevant evidence organised. |
| ERP audit trail | Preserve system logs that can establish who created or changed relevant records. |
| Legal review | For a potentially prosecutable matter, obtain qualified legal advice on the facts and applicable law. |
12. Practical Approach When a GST Summons Is Received
A summons under Section 70 should not be ignored. At the same time, the recipient should avoid treating the response casually.
- Verify the summons, issuing authority, subject matter and date of appearance.
- Identify the GSTIN, tax period and transactions covered.
- Inform the appropriate finance/tax/legal authority within the organisation.
- Collect the records relevant to the specific subject matter.
- Prepare a factual chronology before appearance.
- Separate facts personally known to the person appearing from assumptions or information obtained from others.
- Answer accurately and avoid guessing where the person genuinely does not know a fact.
- Maintain copies of documents submitted and appropriate internal records of the response.
- Where the matter may lead to prosecution, obtain professional legal advice.
13. Why the Signature Matters
The statutory wording specifically refers to a statement “made and signed” by the person on appearance in response to a Section 70 summons.
Therefore, the nature of the document and circumstances in which it was made matter. A casual internal email, an unsigned note, or an unrelated commercial document should not simply be described as a Section 136 statement without examining the statutory requirements.
For businesses, this is another reason to maintain proper records of appearances, documents produced and the statements made during formal GST inquiry proceedings.
15. Common Misunderstandings
“Every statement given to a GST officer is covered by Section 136.”
No. The provision specifically concerns a statement made and signed on appearance in response to a summons issued under Section 70 during an inquiry or proceeding under the Act.
“A Section 70 statement automatically proves the criminal case.”
No. Section 136 identifies circumstances in which the statement is relevant for proving the truth of facts it contains. The court still decides the prosecution according to law.
“Section 136 applies only if the statement maker dies.”
No. Death is one circumstance under clause (a). The provision also covers other specified forms of unavailability and the separate situation in clause (b) where the maker is examined as a witness.
“If the maker is available, the earlier statement can never be relevant.”
That is also incorrect. Clause (b) specifically contemplates the maker being examined as a witness and the court considering admission in evidence in the interest of justice.
“A statement is relevant simply because it is signed.”
Signature is one part of the statutory description. The statement must also arise in response to a Section 70 summons during an inquiry/proceeding under the Act, and the statutory circumstances must be considered.
“Section 136 creates a new GST offence.”
No. It concerns evidentiary relevance in prosecution. The underlying offence is created elsewhere in the Act.
“A mismatch in GST records means the person's statement proves fraud.”
No. A mismatch can have many causes. The criminal offence charged and the evidence relevant to its ingredients must be considered.
16. Evidence-Readiness Checklist for Businesses
- Maintain a summons register.
- Keep the relevant GST returns and workings together.
- Preserve purchase and sales registers for the relevant period.
- Retain invoices, debit/credit notes and supporting documents.
- Maintain bank/payment evidence.
- Preserve e-way bill and transport records where relevant.
- Keep GST reconciliation workings and exception reports.
- Preserve ERP audit logs where available.
- Maintain approval and maker-checker records.
- Record the factual chronology of important transactions.
- Keep copies of documents submitted during an inquiry.
- Obtain legal advice where the matter has potential prosecution consequences.
17. SEO Questions People Commonly Search
- What is Section 136 of the CGST Act?
- What is Section 136 GST in simple language?
- What is the meaning of relevancy of statements under GST?
- Can a GST summons statement be used in prosecution?
- What is Section 70 and Section 136 of the CGST Act?
- When is a statement made before GST authorities relevant in court?
- What happens to a GST statement if the person who gave it dies?
- Can a signed GST statement be used as evidence?
- What is Section 136 CGST Act explained with examples?
- What is the difference between GST inquiry and prosecution?
- Does every GST statement become evidence in a criminal case?
- Section 136 vs Section 135 CGST Act?
18. Frequently Asked Questions
1. What is Section 136 of the CGST Act?
It deals with the relevancy of a statement made and signed by a person on appearance in response to a Section 70 summons during an inquiry or proceeding under the CGST Act, in specified circumstances.
2. What type of statement does Section 136 cover?
The statutory provision covers a statement made and signed by a person on appearance in response to a summons issued under Section 70 during an inquiry or proceeding under the Act.
3. Is every statement before a GST officer covered?
No. The statutory requirements must be satisfied, including the Section 70 summons and the circumstances specified in Section 136.
4. What are the two circumstances under Section 136?
Clause (a) covers specified circumstances in which the maker is unavailable. Clause (b) covers the situation where the maker is examined as a witness and the court considers admission of the statement in the interest of justice.
5. What if the person who gave the statement has died?
Death is expressly mentioned in Section 136(a) as one of the circumstances in which the statement may be relevant, subject to the operation of the provision in the actual case.
6. What if the person cannot be found?
That is also expressly mentioned in clause (a). The court must consider the circumstances and statutory requirements.
7. What if the person is examined as a witness?
Clause (b) applies where the person is examined as a witness before the court and the court considers that the statement should be admitted in evidence in the interest of justice.
8. Does Section 136 automatically prove the facts stated?
It provides that the statement shall be relevant for the purpose of proving the truth of the facts it contains when the specified circumstances apply. The court remains responsible for evaluating the prosecution and evidence according to law.
9. Is Section 136 connected to Section 70?
Yes. Section 136 expressly refers to a summons issued under Section 70.
10. Does Section 136 create a criminal offence?
No. It is an evidentiary provision concerning statements in prosecution.
11. Can a statement be relevant even when the maker is alive?
Yes. Clause (b) expressly contemplates the maker being examined as a witness before the court.
12. Does signing the statement make it automatically admissible?
No. The statutory description and the applicable circumstances must be satisfied, and the court determines the evidentiary issues.
13. Should a company keep records of GST summons?
Yes. A central summons register and organised records can help the business manage formal inquiries and preserve an accurate chronology.
14. Can a GST statement be the only evidence in a prosecution?
Section 136 does not prescribe a general rule that a prosecution must or must not have other evidence. The evidentiary assessment depends on the offence, facts and applicable law.
15. How is Section 136 different from Section 135?
Section 135 concerns presumption of culpable mental state. Section 136 concerns the relevance of specified statements made in response to Section 70 summons.
16. How is Section 136 different from Section 134?
Section 134 deals with cognizance of GST offences and the required Commissioner sanction/court level. Section 136 concerns evidentiary relevance of specified statements.
19. Quick Revision – Section 136
- Section 136 = Relevancy of statements under certain circumstances.
- The statement must be made and signed by a person appearing in response to a Section 70 summons.
- The statement must arise during an inquiry or proceeding under the CGST Act.
- Its relevance is for proving, in prosecution, the truth of the facts it contains.
- Clause (a): specified circumstances where the maker is unavailable.
- Clause (b): maker is examined as a witness and the court considers admission in evidence in the interest of justice.
- Section 136 does not itself create an offence.
- It does not mean every GST statement automatically proves a prosecution.
- Section 70 should be read with Section 136.
- Sections 132, 134, 135, 137 and 138 provide important surrounding context in GST prosecution matters.
20. Legal Disclaimer
This page is provided for general educational and compliance-workflow purposes. GST law, rules, notifications, circulars, instructions, evidence law, criminal procedure and judicial interpretation can change, and the legal position can depend on the facts, date, jurisdiction and exact proceeding. Before taking a tax, accounting, litigation or criminal-law decision, verify the law applicable to the relevant period and obtain professional advice where appropriate. This page is not a substitute for professional legal advice.