Note: Advance reward to informer may be decided by the reward

sanctioning authority upto the respective monetary limit even

if the total entitlement of reward exceeds the said monetary
limit. In such cases, the final reward shall be decided by the
appropriate reward sanctioning authority based on entitlement
of reward.

For detailed information please refer to CBIC Circular No. 20/2015-

Customs dated 31.07.2015, Circular No. 29/2016-Customs dated
23.06.2016 and Circular No. 36/2018-Customs dated 05.10.2018 available
at https://https://www.taxinformation.cbic.gov.in

REWARD TO
INFORMERS
(Updated as on November 2022)

Please scan for download

(for GST Brohures) (for Customs Brohures)

Published by:
Directorate General of Taxpayer Services,
C.R. Building, New Delhi-110109

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@cbic_india @cbicindia

Directorate General of Taxpayer Services

@cbic @cbicindia
CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS
www.cbic.gov.in

@CBIC INDIA
GRANT OF REWARD TO INFORMERS
01. The field formations [Commissionerates of Customs/Central Taxes Above ` 10 A Committee consisting of:-
(Central Goods and Services Tax (GST), Integrated Goods and Services Lakh & upto
Tax (IGST), Central Excise) and the Directorate General of Revenue ` 25 Lakh (a) Jurisdictional Principal Commissioner/
Intelligence (DRI) and Directorate General of GST Intelligence (DGGI)] Commissioner of Customs/CGST & Central
of Central Board of Indirect Taxes and Customs give reward to the Excise/Principal Additional Director General/
informers (those who give information to the Additional Director General of DRI/DGGI;
Department on smuggling of contraband and evasion
(b) One of jurisdictional Addl. Comm./Senior
of duties and taxes) under “The Guidelines for grant of
most Jt. Commissioner/Director of the
Reward to informers and Government Servants, 2015 . Commissionerate or/DRI/DGGI; and
“ The guidelines are applicable for grant of rewards to the informers
in respect of cases of seizures made and/or infringements/evasion (c) An outside Addl/Jt. Commissioner or Addl/ Jt.
of duty/ service tax etc. detected, under the provisions of the Director of DRI/DGGI nominated by jurisdictional
following Acts: Principal Commissioner/Commissioner/Principal
ADG/ADG
(a) The Customs Act, 1962;
(b) The Central Excise Act, 1944; Note: Addl. Commissioner/ Joint Commissioner of the
(c) Narcotic Drugs & Psychotropic Substances (NDPS) Act, 1985; Commissionerate or/DRI/DGGI being considered
for reward shall not be member of the reward
(d) Finance Act, 1994 as amended to an extent the said Act
committee.
Contains provisions relating to Service Tax;
(e) The Central Goods and Services Tax Act, 2017; Above ` 25 A Committee consisting of
(f) The Central Goods and Services Tax (Extension lo Jammu and Lakhs &
Kashmir ) Act; upto i. Jurisdictional Principal Chief Commissioner/Chief
(g) The Integrated Goods and Services Tax Act, 2017; and ` 50 Lakhs Commissioner/Principal DGRI/DGRI/ Principal
(h) The Integrated Goods and Services Tax (Extension to Jammu DGGI/DGGI;
and Kashmir) Act, 2017.
ii. Jurisdictional Principal Commissioner/
02. These guidelines will also be applicable for: Commissioner/ Principal ADG/ADG; and

(a) grant of rewards in respect of cases of detection of Drawback iii. Principal Commissioner (Logistics or any other
frauds or abuses of duty exemption schemes under various Commissioner rank officer nominated by Principal
Export Promotion Schemes announced by the Government Chief Commissioner/Chief Commissioner/
from time to time, unearthed on the basis of specific prior Principal DGRI/DGRI/ Principal DGGI/DGGI.
information provided by the informer or prior intelligence Above ` 50 Apex Reward Committee comprising of
developed by the Government Servants; Lakhs
a) Principal DGRI/DGRI and any two Principal Chief
(b) grant of reward to informers (who give information relating to Commissioners / Chief Commissioners for cases
assets, immovable properties etc. of persons from whom related to Customs Act and NDPS Act; and
arrears of duty, tax, fine, penalty etc, are recoverable and the
information results in the recovery of arrears); b) Principal DGGSTI/DGGSTI and any two Principal
Chief Commissioners / Chief Commissioners for
(c) grant of reward to an informer who gives information cases related to GST, Central Excise and Service
regarding the where abouts, assets, immovable properties Tax.
etc. of persons from whom arrears of duty, tax, fine, penalty
etc. are recoverable and the information results in recovery of
arrears.
************

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 PRINCIPLES GOVERNING GRANT OF REWARD
Annexure-A-3
Rates of Reward in respect of seizure of Gold / Silver in contravention 03. Reward should not be granted as a matter of routine : Reward
of provisions of the Customs Act, 1962
is purely an ex-gratia payment which , subject to guidelines , may be
SI.No. Commodity Rate of maximum reward Prescribed purity granted based on the judgment of the authority competent to grant
1 Gold ` 1,500/- per 10 grams 99.9% rewards and taking into account facts and circumstances of each
case and cannot be claimed by anyone as a matter of right.
2 Silver ` 3,000/- per kilogram 99.0%

N.B: Rewards shall be reduced prorata if the purity is less than the one 04. Criteria for grant of reward: In determining the reward which may be
prescribed above. granted, the authority competent to grant reward will keep in mind the
For 10 gm gold and for 1kg of silver the admissible reward shall be- following:

(a) When the gold is absolutely confiscated and the goods are (a) The specificity and accuracy of the information, the risk
not redeemed to the noticee, the quantum of reward shall be and trouble undertaken, the extent and nature of the help
` 1,500/- per 10 gms. Similarly, with regard to confiscation of rendered by the informer, whether information gives clues to
silver, the quantum of reward shall be ` 3,000/- per one Kg. persons involved in smuggling, infringements, evasion of duty,
tax etc.;
(b) When the gold and silver, including jewellery and articles (b) special initiative, efforts and skills/ ingenuity displayed leading
thereof are seized, and in cases of detection of import of gold / to the recovery of Government dues during the course of
silver in contravention of provisions of Customs Act, 1962 investigation admitting their liability by way of voluntary
(where after issuance of SCN / completion of adjudication deposit;
proceedings, an option to redeem goods is exercised), then (c) whether the information led to seizure of contraband goods/
quantum of reward shall be calculated as per the actual detection of infringements /evasion of duty /tax, the owners/
realization of duty, fine and penalty as applicable to similar organizers/ financiers/racketeers and the carriers have been
such detection in terms of the reward rules. apprehended or not;
(d) the reward has to be case specific and not to be extended,
(c) In case of absolute confiscation of gold and silver jewellery, in respect of other cases made elsewhere/against other parties
the quantum and ceiling of reward will be 20% of the Net sale on the basis of a similar modus operandi;
proceeds of the jewellery plus amount of penalty levied/ (e) in the cases of recovery of arrears of duty/tax. the grant
imposed and recovered. of reward shall be considered only in those cases where the
Chief Commissioner is satisfied that all possible efforts have
***** been made by the Departmental officers to trace the defaulter/
Annexure-B details of defaulter ‘s property and Information provided by
Monetary limit wise Reward Sanctioning Authority the informer has been instrumental in the recovery of arrears.

1. Reward To informers 05. Assignment of Reward (transfer of reward and payment of

reward in the event of death of informer/Government Servant):
Monetary As the reward under these guidelines is in the nature of ex-gratia
Reward Sanctioning Authority
Limit payment, no assignment (transfer) thereof made by the informer will be
Upto ` 10 Jurisdictional Principal Commissioner/ Commissioner recognized. However, in the event of death of the informer the authority
lakh of Customs/CGST & Central Excise/Principal Additional competent to grant rewards may grant reward to legal heirs or nominees
Director General/Additional Director General of DRI/ of an informant/Government Servant of an amount not exceeding the
DGGI amount that would have been payable to the informant had he/she not
died.

QUANTUM AND CEILING OF REWARDS

06. In the cases other than those involving opium and other narcotic
drugs, controlled substances, psychotropic substances and other
synthetic drugs etc. informers will be eligible for reward upto:

10 3
 (a) 20% of the net sale proceeds of the contraband goods
seized (expect items listed in Para 7, 8 & 9 below) and/or Annexure-A-2
amount of duty/Tax evaded plus amount of fine and penalty Rates of Reward in respect of controlled/psychotropic substances,
levied/imposed and recovered; etc. seized under Narcotic Drugs and Psychotropic Substances (NDPS)
Act, 1985
(b) 20% of recovery of drawback claimed fraudulently and/or
recovery of duties evaded under various Export Promotion
Schemes plus amount of fine/penalty levied / imposed and Commodity (Controlled/
SI. Rate of maximum Prescribed
recovered. psychotropic substances/
No. reward purity
synthetic drugs)
07. In respect of opium and other narcotic drugs, controlled substances, 1. Ephedrine, its salts and ` 280/- per kg 100%
psychotropic substances and other synthetic drugs etc. seized preparations thereof
under the provisions of Narcotic Drugs and Psychotropic Substances 2. Pseudo-ephedrine, its salts ` 480/- per kg 100%
(NDPS) Act, 1985, the overall ceiling of reward will be as per the and preparations thereof
revised specific rates indicated in Annexure A-1 and Annexure A-2. 3. Acetic Anhydride ` 10/- per litre 100%

08. In respect of Gold and Silver seized under the provisions of Customs 4. Ketamine, its salts and ` 700/- per kg 100%
preparations thereof
Act, 1962 and in cases of detection of import of gold / silver in
contravention of provisions of Customs Act, 1962 the overall ceiling 5. Anthranillic Acid ` 45/- per kg 100%
of reward will be as per specific rates indicated in Annexure A-3. 6. N-acetyl Anthranillic acid ` 80/- per kg 100%
7, Diazepam and its ` 0.53/- per tablet 100%
09. In respect of recovery of arrears of duty/tax, the reward can be preparations of 5mg
given up to a maximum of 5% of the amount recovered and the
8. Alprazolam and its ` 0.20/- per tablet 100%
quantum of reward will be determined by such factors as the nature, preparations of 5mg
accuracy, actionability and efficacy of the information, and other
9. Lorezepam and its ` 0.296/- per 100%
attendant factors.
preparations tablet of 5mg

PAYMENT OF ADVANCE / INTERIM REWARD 10. Alprax and its preparations ` 0.52/- per tablet 100%
of 5mg
10. Advance/Interim reward may be paid to informers upto 50% of the 11. Buprenorphine/ Tidigesic ` 25,000 /- per kg 100%
total admissible reward immediately on seizure in respect of the and its preparations
following categories of goods, namely : 12. Dextropropoxyphene, ` 2,880 /- per kg 100%
its salts and preparations
(a) gold / silver bullion ; and thereof
(b) arms and ammunition, explosives.
13. Fortwin and its ` 1.044/- per vial 100%
preparations of 30 mg
11. In other cases of outright smuggling, involving seizures of contra
band goods, including foreign currency, advance/ interim reward N.B: Rewards shall be reduced prorata if the purity is less than the one
upto 25% of the total admissible reward may be paid to the informers prescribed above
immediately after seizure, if the authority competent to sanction
reward is satisfied that the goods seized are reasonably expected to
be confiscated on adjudication and the adjudication order is likely to
be sustained in appeal/ revision proceedings.

12 . In all other cases, including Customs appraising cases, cases of

town-seizures and Central Excise duty evasion / service tax evasion
cases, normally, no advance/ interim reward would be granted.
However, in cases where the parties/persons involved have
voluntarily paid the amount of duty evaded during the course of

4 9
 investigation, admitting their liability, 25% of the admissible reward
Annexure-A-1 may be considered for payment as advance /interim reward to the
Rates of Reward in respect of substances seized under the provisions informers, after the issue of the show-cause notice (SCN), provided
of Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985
the authority competent to sanction reward is satisfied that there
SI. Commodity Proposed rate Prescribed is reasonable chance of confiscability/infringement/evasion, as the
No. of maximum purity case may be, being established in adjudication and sustained in
reward
appeal/ revisionary proceedings.
(` per kg)
1. Opium 6,000/- Standard Opium 13. In exceptional cases, the Heads of Department may, having regard
(20% of present
to the value of the seizures effected and magnitude of the evasion
illicit price)
of duty/infringement detected and special efforts or ingenuity
2. Morphine base and 20,000/- 90% or more of displayed by the officers concerned, sanction suitable reward on the
its salts (20% of present anhydrous morphine
spot to be adjusted against the advance/ interim reward that may be
illicit price)
sanctioned thereafter.
3. Heroin and its salts 1,20,000/- 90 % or more of
(20% of present diacetyl morphine
14. Where proceedings in a case are closed without issue of show cause
illicit price)
notice or within 30 days of service of show cause notice after
4. Cocaine and its 2,40,000/- 90% or more of recovery of duty, interest and /or penalty, as per the provisions of
salts (20% of present anhydrous morphine
law mandating such closure of proceedings, or by an order of the
illicit price)
Settlement Commission, reward may be paid to the officers as well
5. Hashish 2,000/- With THC content as the informers taking into consideration their respective roles in
(20% of present of 4 % or more
detection and recoveries made in the case.
illicit price)
6. Hashish Oil 10,000/- With THC content 15. Reward may also be paid in cases where recoveries are made under
(20% of present of 20% or more
voluntary disclosure schemes such as Voluntary Compliance
illicit price)
Encouragement Scheme (VCES) provided the initiation of the
7. Ganja 600/- Should be investigation preceded the filing of declaration by the assessees
(20% of present commercially
under such voluntary disclosure schemes.
illicit price) acceptable as Ganja
8. Mandrax Tablets 2,000/- Presence of PAYMENT OF FINAL REWARD
(20% of present Methaqualone
illicit price)
16. Final rewards should be sanctioned and disbursed only after
9. Amphetamine, its 20,000/- 100% pure ATS with conclusion of adjudication/appeal/revision proceedings as well as
salts and (10% of present pro rata reduction closure of proceedings.
preparations thereof illicit price) for reduced purity
10. Methamphetamine, 20,000/- 100% pure ATS with 17. In case of narcotic drug, psychotropic substance and controlled
its salts and (10% of present pro rata reduction substance, one time final rewards should be sanctioned and
preparations thereof illicit price) for reduced purity
disbursed only after compliance of provisions under Para 4(1) of the
11. Ecstasy or 3,4- 15,000/1,000 Presence of MDMA Notification No. GSR 38(E) dated 16.01.2015 issued under Section 52
Methylene Dioxy tablets (10% of A of the Narcotic Drugs & Psychotropic Substances Act, 1985 and
Methamphetamine present illicit
filing of prosecution complaint before the designated Court.
(MDMA) price)

N.B: Rewards shall be reduced prorata if the purity is less than the one 18. The final reward will be determined on the basis of the net sale
prescribed above. proceeds of goods seized/confiscated (if any) and/or the amount of
additional duty/fraudulently claimed Drawback recovered plus
penalty/fine recovered for the duty recovered in cases of detection
of abuse of duty exemption schemes.

8 5
 further representation or petition against the decision regarding
19. The total rewards admissible, i.e., advance and final rewad put grant of reward would be entertained either from the informer or
together, should not exceed the ceiling of 20% of the net sale any person on his behalf.
proceeds (if any) plus amount of additional duty/ service tax/fine/
penalty recovered in cases or the amount of draback fraudulently UNDERTAKING BY THE INFORMER
claimed recovered, or the duty recovered in cases of detection of
misuse of duty exemption scheme as the case may be. 25. At the time when an informer furnishes any information or
document(s), an undertaking should be taken from the informer
that:
20. Time limit to sanction final reward: It is desirable that immediately
after conclusion of adjudication /appeal/ revision proceedings, it (a) he/she is aware that the extent of the reward depends on the
should be considered by the sponsoring authority as to whether the precision of the information furnished by him/her;
case can be considered and recommended to the reward committee (b) the provisions of Section 177, 182 and 211 of the Indian Penal
for grant of reward. Code have been read by and/or explained to him/her;
(c) he/she is aware that if the information furnished by him/her is
DELEGATION OF POWERS FOR SANCTION / PAYMENT OF REWARD found to be false, he/she, would be liable to prosecution ;
COMPOSITION OF REWARD COMMITTEE (d) he/she shall not claim reward as a matter of right;
(e) he/she accepts that the Government is under no obligation
to enter into any correspondence regarding the details of
21. The monetary limit for sanction of rewards to informers and
seizures made etc., if any, and that the payment of reward is an
Government Servants will be as per Annexure-B.
ex-gratia based on best judgment of the authority competent
to grant reward and taking into consideration the facts and
22. In multi-jurisdictional cases, only the Chief Commissioner/ circumstances of each case.
Commissioner / Additional Commissioner /Joint Commissioner
having jurisdiction where the maximum evasion of revenue has 26. It is also clarified to the informer that the Government is under no
taken place shall be the Member of the Reward Committee. The obligation to grant/sanction the maximum admissible reward up
Additional Commissioner / Joint Commissioner being considered for to 20% of the net sale proceeds of the seized/confiscated goods,
(if any) and/or the amount of additional duty/penalty/redemption
reward should not be a part of the Reward committee.
fine recovered and that the amount of reward to be sanctioned
to the informer, will purely depend on the specificity & accuracy
REVIEW OF FINAL REWARDS SANCTIONED BY THE COMPETENT of the information & other dependent factors, as indicated in the
AUTHORITY guidelines.

23. Final reward sanctioned by the duly constituted reward sanctioning ADDITIONAL INFORMATION IN RESPECT OF IDENTITY OF INFORMER
authority /committee shall not be reviewed or reopened. However,
in most exceptional cases, where DGRI, DGGI, or the Chief 27. At present DRI-I / AE-1 is filed by an officer, who records the
Commissioner, as the case may be, is satisfied that the review of the information stating gist of intelligence and action to be taken
along with the sealed cover containing an information slip
final reward sanctioned by the competent authority is absolutely
containing Left Thumb Impression (LTI). Further, in order to
necessary to redress any grave injustice meted out to the Informer reduce delay and provide adequate safeguards, informer may,
and make a recommendation to the Board to this effect, the on his own wish provide following additional information on the
Government may review the final reward sanctioned on the specific information slip/ written information viz. Visible identification
recommendations of the Board. marks (two), Height, Date of birth/Age. However, the additional
information is not considered as mandatory for grant of reward
24. Since reward is an ex- gratia payment, only one representation by to informer. No reward shall be withheld for non-furnishing
of additional information.
the informer against the amount of reward sanctioned should be
entertained after being submitted through the reward sanctioning
committee /authority to the Jurisdictional Chief Commissioner/
DGRI/DGGI as the case may be, who, if deemed fit will forward the
same with his recommendation to the Board. The Government may
review the reward on the recommendations of the Board. No

6 7