This instruction lays down comprehensive guidelines for exercise of powers of arrest and grant of bail under Sections 69 and 132 of the CGST Act, guided by the Supreme Court judgment emphasising protection of personal liberty. It clarifies that arrest is not to be made routinely or mechanically and must be based on clear “reasons to believe” supported by credible material and presence of mens rea. Arrest should be resorted to only where it is necessary for proper investigation, to prevent tampering of evidence, influencing witnesses, or risk of absconding, and not in cases involving mere interpretational disputes. Detailed procedures for authorisation of arrest, preparation of arrest memo, compliance with CrPC and DK Basu safeguards, and conduct during arrest are prescribed. Separate procedures for bailable and non-bailable offences, including conditions of bail, production before magistrate, and timelines for filing prosecution complaint, are laid down. The instruction also mandates prompt reporting of arrests to the Board and maintenance of arrest and bail records for effective oversight.