Rule 154 of CGST Rules 2017: Disposal of Proceeds of Sale of Goods and Movable or Immovable Property

Provisions under Rule 154 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Disposal of Proceeds of Sale of Goods and Movable or Immovable Property”, are as under:

CGST Rule 154: Disposal of Proceeds of Sale of Goods and Movable or Immovable Property (Chapter-XVIII: DEMANDS AND RECOVERY) [Note 1]

The amounts so realised from the sale of goods, movable or immovable property, for the recovery of dues from a defaulter shall,-

(a) first, be appropriated against the administrative cost of the recovery process;

(b) next, be appropriated against the amount to be recovered;

(c) next, be appropriated against any other amount due from the defaulter under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017 and the rules made thereunder; and

(d) any balance, be paid to the defaulter.

CGST Rule 154: Disposal of Proceeds of Sale of Goods or Conveyance and Movable or Immovable Property (Chapter-XVIII: DEMANDS AND RECOVERY)

(1) The amounts so realised from the sale of goods or conveyance, movable or immovable property, for the recovery of dues from a defaulter or for recovery of penalty payable under sub-section (3) of section 129 shall,-

(a) first, be appropriated against the administrative cost of the recovery process;

(b) next, be appropriated against the amount to be recovered or to the payment of the penalty payable under sub-section (3) of section 129, as the case may be;

(c) next, be appropriated against any other amount due from the defaulter under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017 and the rules made thereunder; and

(d) the balance, if any, shall be credited to the electronic cash ledger of the owner of the goods or conveyance as the case may be, in case the person is registered under the Act, and where the said person is not required to be registered under the Act, the said amount shall be credited to the bank account of the person concerned;

(2) where it is not possible to pay the balance of sale proceeds, as per clause (d) of sub-rule (1), to the person concerned within a period of six months from the date of sale of such goods or conveyance or such further period as the proper officer may allow, such balance of sale proceeds shall be deposited with the Fund.

Amendments History:

1. CGST Rule 154 substituted w.e.f. 01/01/2022, vide Central Tax Notification 40/2021 dt. 29/12/2021. Revised CGST Rule 154 provides that disposal proceeds shall be appropriated against the tax and penalty amount to be recovered after appropriation for the administrative cost of recovery process. After above appropriations, if there is a balance amount left, the same also shall not be paid to the defaulter registered owner of goods/ transporter, rather the same shall be credited to the electronic cash ledger. In other cases it can be paid into the bank account of the defaulter, however in case of any difficulty in such remittance, the balance of disposal proceeds shall be deposited with the Fund.

 

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Note: The CGST Rules 2017 along with the prescribed Forms were initially notified vide Central Tax Notifications 3/2017 dt. 19/06/2017 (Rule 1 to 26), 10/2017 dt. 28/06/2017 (Rules 27 to 138) and 15/2017 dt. 01/07/2017 (Rules 139 to 162). These Rules/ Forms were subsequently amended by CBIC through various Notifications issued from time to time. Information on this page is a Rule-wise compilation of Amendments made by all such Notifications upto 29/12/2021, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.

CBIC Updates (GST)
GST Circulars, Notifications, Press Releases, Orders, etc. issued by the Central Board of Indirect Taxes & Customs (CBIC) in different years, along with Section-wise/ Rule-wise Text of GST Acts/ Rules:
CGST: CGST Act/ Definitions, CGST Rules, GST Forms
IGST: IGST Act/ Definitions, IGST Rules
UTGST: UTGST Act/ Definitions, UTGST Rules
CBIC Circulars (CGST/ IGST/ UTGST): 2021, 2020, 2019, 2018, 2017
CBIC GST Instructions: 2022, 2021, 2020, 2019, 2018, 2017
CBIC CGST Notifications: 2022, 2021, 2020, 2019, 2018, 2017
CBIC CGST Rate Notifications: 2021, 2020, 2019, 2018, 2017
CBIC IGST Notifications: 2022, 2021, 2020, 2019, 2018, 2017
CBIC IGST Rate Notifications: 2020, 2019, 2018, 2017
CBIC UT Tax/ UTGST Notifications: 2022, 2021, 2020, 2019, 2018, 2017
CBIC UT Tax/ UTGST Rate Notifications: 2020, 2019, 2018, 2017
CBIC Compensation Cess Notifications: 2022, 2021, 2020, 2019, 2018, 2017
CBIC Compensation Cess Rate Notifications: 2022, 2021, 2020, 2019, 2018, 2017
CBIC Orders (CGST/ IGST/ UTGST): 2020, 2019, 2018, 2017
CBIC Press Releases: 2020, 2019, 2018, 2017
GST Portal/ Network (GSTN) Updates
Note: For Official/ updated copy, please visit the CBIC website.

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