Rule 159 of CGST Rules 2017: Provisional Attachment of Property

Provisions under Rule 159 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Provisional Attachment of Property”, are as under:

CGST Rule 159: Provisional Attachment of Property (Chapter-XVIII: DEMANDS AND RECOVERY) 

(1) Where the Commissioner decides to attach any property, including bank account in accordance with the provisions of section 83, he shall pass an order in FORM GST DRC 22 to that effect mentioning therein, the details of property which is attached.

(2) The Commissioner shall send a copy of the order of attachment in FORM GST DRC-22 to the concerned Revenue Authority or Transport Authority or any such Authority to place encumbrance on the said movable or immovable property, which shall be removed only on the written instructions from the Commissioner to that effect and a copy of such order shall also be sent to the person whose property is being attached under section 83. [Note 1(a) & (b)]

(3) Where the property attached is of perishable or hazardous nature, and if the taxable person and if the person, whose property has been attached, pays an amount equivalent to the market price of such property or the amount that is or may become payable by the taxable person by such person, whichever is lower, then such property shall be released forthwith, by an order in FORM GST DRC 23, on proof of payment. [Note 1(c) & (d)]

(4) Where the taxable person such person fails to pay the amount referred to in sub-rule (3) in respect of the said property of perishable or hazardous nature, the Commissioner may dispose of such property and the amount realized thereby shall be adjusted against the tax, interest, penalty, fee or any other amount payable by the taxable person such person. [Note 1(e)]

(5) Any person whose property is attached may, within seven days of the attachment under sub-rule (1), file an objection file an objection in FORM GST DRC-22A, to the effect that the property attached was or is not liable to attachment, and the Commissioner may, after affording an opportunity of being heard to the person filing the objection, release the said property by an order in FORM GST DRC 23. [Note 1(f)]

(6) The Commissioner may, upon being satisfied that the property was, or is no longer liable for attachment, release such property by issuing an order in FORM GST DRC 23.

Amendments History:

1. Amendments in CGST Rule 159, w.e.f. 01/01/2022, vide Central Tax Notification 40/2021 dt. 29/12/2021:

(a) In sub-rule (2), the text “in FORM GST DRC-22” inserted after the text “copy of the order of attachment”;

(b) In sub-rule (2), the text “and a copy of such order shall also be sent to the person whose property is being attached under section 83” inserted after the text “Commissioner to that effect”;

(c) In sub-rule (3), the text “and if the taxable person” substituted with the text “and if the person, whose property has been attached,”;

(d) In sub-rule (3), the text “by the taxable person” substituted with the text “by such person”;

(e) In sub-rule (4), the text “the taxable person” substituted at both the places with the text “such person”;

(f) In sub-rule (5), the text “within seven days of the attachment under sub-rule (1), file an objection” substituted with the text “file an objection in FORM GST DRC-22A”.

Above amendments have been made to provide that the Commissioner shall send the Attachment Order in Form GST DRC-22 to the Revenue Authorities with a copy to the person whose property is being attached u/s 83, who can file Objection to the Order in prescribed time/ Form GST DRC-22A. Commissioner may release the attached property in Form GST DRC-23, after hearing objections from the owner of property.

—–

Note: The CGST Rules 2017 along with the prescribed Forms were initially notified vide Central Tax Notifications 3/2017 dated 19/06/2017 (Rule 1 to 26), 10/2017 dated 28/06/2017 (Rules 27 to 138) and 15/2017 dated 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 the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.