Rule 159 of ‘Central Goods and Services Tax (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 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.
(3) Where the property attached is of perishable or hazardous nature, and if the taxable person pays an amount equivalent to the market price of such property or the amount that is or may become payable by the taxable person, whichever is lower, then such property shall be released forthwith, by an order in FORM GST DRC-23, on proof of payment.
(4) Where the taxable 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.
(5) Any person whose property is attached may, within seven days of the attachment under sub-rule (1), file an objection 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.
It may be noted that the above information is based on Updated CGST Rules 2017 (amended upto 18 July 2019), as compiled/ shared by CBIC (i.e. as notified/ amended upto 18 July 2019 by the CBIC). However, for detailed/ official information and/or subsequent updates, please refer relevant Notifications. E&OE
Further, it may be noted that Rules 139 to 162 (pertaining to various Chapters) of the Central Goods and Services Tax (CGST) Rules, 2017 were initially notified by CBIC (CBEC) vide CGST (3rd Amendment) Rules, 2017 Notification No. 15/2017 Central Tax dt. 1 July 2017, applicable w.e.f. 1 July 2017.
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