CGST Rule 159: Provisional Attachment of Property

Provisions under Rule 159 of CGST Rules, 2017 relating to “Provisional Attachment of Property”:

CGST Rule 159: Provisional Attachment of Property (Chapter XVIII: DEMANDS AND RECOVERY) [*1]

(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 [*2(a)] 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 or on expiry of a period of one year from the date of issuance of order under sub-rule (1),  whichever is earlier, [*3] and a copy of such order shall also be sent to the person whose property is being attached under section 83 [*2(b)].

(3) Where the property attached is of perishable or hazardous nature, and if the person, whose property has been attached [*2(c)], pays an amount equivalent to the market price of such property or the amount that is or may become payable by such person [*2(d)], whichever is lower, then such property shall be released forthwith, by an order in FORM GST DRC 23, on proof of payment.

(4) Where such person [*2(e)] 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 such person [*2(e)].

(5) Any person whose property is attached may, file an objection in FORM GST DRC-22A [*2(f)], 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.

(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.

Notes (History of Amendments in Bare Text):

1. CGST Rule 159 introduced vide Notification 15/2017, effective 01/07/2017.

2. Amendments from 01/01/2022 vide Notification 40/2021:

(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 “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” occurring at both the places substituted 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”.

3. In sub-rule (2), the text “or on expiry of a period of one year from the date of issuance of order under sub-rule (1), whichever is earlier,” inserted after the text “Commissioner to that effect” from 26/10/2023 vide Notification 52/2023.