Demands And Recovery Rules under CGST Rules 2017

 

1. Notice and order for demand of amounts payable under the Act.- (1) The prop­er offi­cer shall serve, along with the 
   • notice under sub-sec­tion (1) of sec­tion 73 or sub-sec­tion (1) of sec­tion 74 or sub- sec­tion (2) of sec­tion 76, a sum­ma­ry there­of elec­tron­i­cal­ly in FORM GST DRC-01,
   • state­ment under sub-sec­tion (3) of sec­tion 73 or sub-sec­tion (3) of sec­tion 74, a sum­ma­ry there­of elec­tron­i­cal­ly in FORM GST DRC-02,

spec­i­fy­ing there­in the details of the amount payable.

• Where, before the ser­vice of notice or state­ment, the per­son charge­able with tax makes pay­ment of the tax and inter­est in accor­dance with the pro­vi­sions of sub-sec­tion (5) of sec­tion 73 or, as the case may be, tax, inter­est and penal­ty in accor­dance with the pro­vi­sions of sub- sec­tion (5) of sec­tion 74, he shall inform the prop­er offi­cer of such pay­ment in FORM GST DRC-03 and the prop­er offi­cer shall issue an acknowl­edge­ment, accept­ing the pay­ment made by the said per­son in FORM GST DRC–04.
• Where the per­son charge­able with tax makes pay­ment of tax and inter­est under sub-section

(8) of sec­tion 73 or, as the case may be, tax, inter­est and penal­ty under sub-sec­tion (8) of sec­tion 74 with­in thir­ty days of the ser­vice of a notice under sub-rule (1), he shall inti­mate the prop­er offi­cer of such pay­ment in FORM GST DRC-03 and the prop­er offi­cer shall issue an order in FORM GST DRC-05 con­clud­ing the pro­ceed­ings in respect of the said notice.

• The rep­re­sen­ta­tion referred to in sub-sec­tion (9) of sec­tion 73 or sub-sec­tion (9) of sec­tion 74 or sub-sec­tion (3) of sec­tion 76 shall be in FORM GST DRC-06.
• A sum­ma­ry of the order issued under sub-sec­tion (9) of sec­tion 73 or sub-sec­tion (9) of sec­tion 74 or sub-sec­tion (3) of sec­tion 76 shall be uploaded elec­tron­i­cal­ly in FORM GST DRC-07, spec­i­fy­ing there­in the amount of tax, inter­est and penal­ty payable by the per­son charge­able with
• The order referred to in sub-rule (5) shall be treat­ed as the notice for
• Any rec­ti­fi­ca­tion of the order, in accor­dance with the pro­vi­sions of sec­tion 161, shall be made by the prop­er offi­cer in FORM GST DRC-08.

2. Recov­ery by deduc­tion from any mon­ey owed.- Where any amount payable by a per­son (here­after referred to in this rule as “the default­er”) to the Gov­ern­ment under any of the pro­vi­sions of the Act or the rules made there­un­der is not paid, the prop­er offi­cer may require, in FORM GST DRC-09, a spec­i­fied offi­cer to deduct the amount from any mon­ey owing to such default­er in accor­dance with the pro­vi­sions of clause (a) of sub-sec­tion (1) of sec­tion 79.

Expla­na­tion.- For the pur­pos­es of this rule, “spec­i­fied offi­cer” shall mean any offi­cer of the Cen­tral Gov­ern­ment or a State Gov­ern­ment or the Gov­ern­ment of a Union ter­ri­to­ry or a local author­i­ty, or of a Board or Cor­po­ra­tion or a com­pa­ny owned or con­trolled, whol­ly or part­ly, by the Cen­tral Gov­ern­ment or a State Gov­ern­ment or the Gov­ern­ment of a Union ter­ri­to­ry or a local authority.

 

3. Recov­ery by sale of goods under the con­trol of prop­er offi­cer.- (1) Where any amount due from a default­er is to be recov­ered by sell­ing goods belong­ing to such per­son in accor­dance with the pro­vi­sions of clause (b) of sub-sec­tion (1) of sec­tion 79, the prop­er offi­cer shall pre­pare an inven­to­ry and esti­mate the mar­ket val­ue of such goods and pro­ceed to sell only so much of the goods as may be required for recov­er­ing the amount payable along with the admin­is­tra­tive expen­di­ture incurred on the recovery

• The said goods shall be sold through a process of auc­tion, includ­ing e‑auction, for which a notice shall be issued in FORM GST DRC-10 clear­ly indi­cat­ing the goods to be sold and the pur­pose of
• The last day for sub­mis­sion of bid or the date of auc­tion shall not be ear­li­er than fif­teen days from the date of issue of the notice referred to in sub-rule (2):

Pro­vid­ed that where the goods are of per­ish­able or haz­ardous nature or where the expens­es of keep­ing them in cus­tody are like­ly to exceed their val­ue, the prop­er offi­cer may sell them forthwith.

• The prop­er offi­cer may spec­i­fy the amount of pre-bid deposit to be fur­nished in the man­ner spec­i­fied by such offi­cer, to make the bid­ders eli­gi­ble to par­tic­i­pate in the auc­tion, which may be returned to the unsuc­cess­ful bid­ders, for­feit­ed in case the suc­cess­ful bid­der fails to make the pay­ment of the full amount, as the case may
• The prop­er offi­cer shall issue a notice to the suc­cess­ful bid­der in FORM GST DRC-11 requir­ing him to make the pay­ment with­in a peri­od of fif­teen days from the date of auc­tion. On pay­ment of the full bid amount, the prop­er offi­cer shall trans­fer the pos­ses­sion of the said goods to the suc­cess­ful bid­der and issue a cer­tifi­cate in FORM GST DRC-12.
• Where the default­er pays the amount under recov­ery, includ­ing any expens­es incurred on the process of recov­ery, before the issue of the notice under sub-rule (2), the prop­er offi­cer shall can­cel the process of auc­tion and release the
• The prop­er offi­cer shall can­cel the process and pro­ceed for re-auc­tion where no bid is received or the auc­tion is con­sid­ered to be non-com­pet­i­tive due to lack of ade­quate par­tic­i­pa­tion or due to low

4. Recov­ery from a third per­son.- (1) The prop­er offi­cer may serve upon a per­son referred to in clause © of sub-sec­tion (1) of sec­tion 79 (here­after referred to in this rule as “the third per­son”), a notice in FORM GST DRC-13 direct­ing him to deposit the amount spec­i­fied in the

(2) Where the third per­son makes the pay­ment of the amount spec­i­fied in the notice issued under sub-rule (1), the prop­er offi­cer shall issue a cer­tifi­cate in FORM GST DRC-14 to the third per­son clear­ly indi­cat­ing the details of the lia­bil­i­ty so discharged.

5. Recov­ery through exe­cu­tion of a decree, etc.- Where any amount is payable to the default­er in the exe­cu­tion of a decree of a civ­il court for the pay­ment of mon­ey or for sale in the enforce­ment of a mort­gage or charge, the prop­er offi­cer shall send a request in FORM GST DRC- 15 to the said court and the court shall, sub­ject to the pro­vi­sions of the Code of Civ­il Pro­ce­dure, 1908 (5 of 1908), exe­cute the attached decree, and cred­it the net pro­ceeds for set­tle­ment of the amount

 

6. Recov­ery by sale of mov­able or immov­able prop­er­ty.- (1) The prop­er offi­cer shall pre­pare a list of mov­able and immov­able prop­er­ty belong­ing to the default­er, esti­mate their val­ue as per the preva­lent mar­ket price and issue an order of attach­ment or dis­traint and a notice for sale in FORM GST DRC- 16 pro­hibit­ing any trans­ac­tion with regard to such mov­able and immov­able prop­er­ty as may be required for the recov­ery of the amount due:

Pro­vid­ed that the attach­ment of any prop­er­ty in a debt not secured by a nego­tiable instru­ment, a share in a cor­po­ra­tion, or oth­er mov­able prop­er­ty not in the pos­ses­sion of the default­er except for prop­er­ty deposit­ed in, or in the cus­tody of any Court, shall be attached in the man­ner pro­vid­ed in rule 151.

• The prop­er offi­cer shall send a copy of the order of attach­ment or dis­traint 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 prop­er offi­cer to that effect.
• Where the prop­er­ty sub­ject to the attach­ment or dis­traint under sub-rule (1) is- 
  • an immov­able prop­er­ty, the order of attach­ment or dis­traint shall be affixed on the said prop­er­ty and shall remain affixed till the con­fir­ma­tion of sale;
  • a mov­able prop­er­ty, the prop­er offi­cer shall seize the said prop­er­ty in accor­dance with the pro­vi­sions of chap­ter XIV of the Act and the cus­tody of the said prop­er­ty shall either be tak­en by the prop­er offi­cer him­self or an offi­cer autho­rised by
• The prop­er­ty attached or dis­trained shall be sold through auc­tion, includ­ing e‑auction, for which a notice shall be issued in FORM GST DRC- 17 clear­ly indi­cat­ing the prop­er­ty to be sold and the pur­pose of
• Notwith­stand­ing any­thing con­tained in the pro­vi­sion of this Chap­ter, where the prop­er­ty to be sold is a nego­tiable instru­ment or a share in a cor­po­ra­tion, the prop­er offi­cer may, instead of sell­ing it by pub­lic auc­tion, sell such instru­ment or a share through a bro­ker and the said bro­ker shall deposit to the Gov­ern­ment so much of the pro­ceeds of such sale, reduced by his com­mis­sion, as may be required for the dis­charge of the amount under recov­ery and pay the amount remain­ing, if any, to the own­er of such instru­ment or a
• The prop­er offi­cer may spec­i­fy the amount of pre-bid deposit to be fur­nished in the man­ner spec­i­fied by such offi­cer, to make the bid­ders eli­gi­ble to par­tic­i­pate in the auc­tion, which may be returned to the unsuc­cess­ful bid­ders or, for­feit­ed in case the suc­cess­ful bid­der fails to make the pay­ment of the full amount, as the case may
• The last day for the sub­mis­sion of the bid or the date of the auc­tion shall not be ear­li­er than fif­teen days from the date of issue of the notice referred to in sub-rule (4):

Pro­vid­ed that where the goods are of per­ish­able or haz­ardous nature or where the expens­es of keep­ing them in cus­tody are like­ly to exceed their val­ue, the prop­er offi­cer may sell them forthwith.

• Where any claim is pre­ferred or any objec­tion is raised with regard to the attach­ment or dis­traint of any prop­er­ty on the ground that such prop­er­ty is not liable to such attach­ment or dis­traint, the prop­er offi­cer shall inves­ti­gate the claim or objec­tion and may post­pone the sale for such time as he may deem fit.

 

• The per­son mak­ing the claim or objec­tion must adduce evi­dence to show that on the date of the order issued under sub-rule (1) he had some inter­est in, or was in pos­ses­sion of, the prop­er­ty in ques­tion under attach­ment or
• Where, upon inves­ti­ga­tion, the prop­er offi­cer is sat­is­fied that, for the rea­son stat­ed in the claim or objec­tion, such prop­er­ty was not, on the said date, in the pos­ses­sion of the default­er or of any oth­er per­son on his behalf or that, being in the pos­ses­sion of the default­er on the said date, it was in his pos­ses­sion, not on his own account or as his own prop­er­ty, but on account of or in trust for any oth­er per­son, or part­ly on his own account and part­ly on account of some oth­er per­son, the prop­er offi­cer shall make an order releas­ing the prop­er­ty, whol­ly or to such extent as he thinks fit, from attach­ment or distraint.
• Where the prop­er offi­cer is sat­is­fied that the prop­er­ty was, on the said date, in the pos­ses­sion of the default­er as his own prop­er­ty and not on account of any oth­er per­son, or was in the pos­ses­sion of some oth­er per­son in trust for him, or in the occu­pan­cy of a ten­ant or oth­er per­son pay­ing rent to him, the prop­er offi­cer shall reject the claim and pro­ceed with the process of sale through
• The prop­er offi­cer shall issue a notice to the suc­cess­ful bid­der in FORM GST DRC-11 requir­ing him to make the pay­ment with­in a peri­od of fif­teen days from the date of such notice and after the said pay­ment is made, he shall issue a cer­tifi­cate in FORM GST DRC-12 spec­i­fy­ing the details of the prop­er­ty, date of trans­fer, the details of the bid­der and the amount paid and upon issuance of such cer­tifi­cate, the rights, title and inter­est in the prop­er­ty shall be deemed to be trans­ferred to such bidder:

Pro­vid­ed that where the high­est bid is made by more than one per­son and one of them is a co-own­er of the prop­er­ty, he shall be deemed to be the suc­cess­ful bidder.

• Any amount, includ­ing stamp duty, tax or fee payable in respect of the trans­fer of the prop­er­ty spec­i­fied in sub-rule (12), shall be paid to the Gov­ern­ment by the per­son to whom the title in such prop­er­ty is
• Where the default­er pays the amount under recov­ery, includ­ing any expens­es incurred on the process of recov­ery, before the issue of the notice under sub-rule (4), the prop­er offi­cer shall can­cel the process of auc­tion and release the
• The prop­er offi­cer shall can­cel the process and pro­ceed for re-auc­tion where no bid is received or the auc­tion is con­sid­ered to be non-com­pet­i­tive due to lack of ade­quate par­tic­i­pa­tion or due to low bids.

 

7. Pro­hi­bi­tion against bid­ding or pur­chase by offi­cer.- No offi­cer or oth­er per­son hav­ing any duty to per­form in con­nec­tion with any sale under the pro­vi­sions of this Chap­ter shall, either direct­ly or indi­rect­ly, bid for, acquire or attempt to acquire any inter­est in the property

 

8. Pro­hi­bi­tion against sale on hol­i­days.- No sale under the rules under the pro­vi­sion of this chap­ter shall take place on a Sun­day or oth­er gen­er­al hol­i­days rec­og­nized by the Gov­ern­ment or on any day which has been noti­fied by the Gov­ern­ment to be a hol­i­day for the area in which the sale is to take

 

9. Assis­tance by police.- The prop­er offi­cer may seek such assis­tance from the offi­cer- in-charge of the juris­dic­tion­al police sta­tion as may be nec­es­sary in the dis­charge of his duties and the said offi­cer-in-charge shall depute suf­fi­cient num­ber of police offi­cers for pro­vid­ing such

 

10. Attach­ment of debts and shares, etc.- (1) A debt not secured by a nego­tiable instru­ment, a share in a cor­po­ra­tion, or oth­er mov­able prop­er­ty not in the pos­ses­sion of the default­er except for prop­er­ty deposit­ed in, or in the cus­tody of any court shall be attached by a writ­ten order in FORM GST DRC-16 -
    • in the case of a debt, the cred­i­tor from recov­er­ing the debt and the debtor from mak­ing pay­ment there­of until the receipt of a fur­ther order from the prop­er officer;
    • in the case of a share, the per­son in whose name the share may be stand­ing from trans­fer­ring the same or receiv­ing any div­i­dend thereon;
    • in the case of any oth­er mov­able prop­er­ty, the per­son in pos­ses­sion of the same from giv­ing it to the defaulter.

• A copy of such order shall be affixed on some con­spic­u­ous part of the office of the prop­er offi­cer, and anoth­er copy shall be sent, in the case of debt, to the debtor, and in the case of shares, to the reg­is­tered address of the cor­po­ra­tion and in the case of oth­er mov­able prop­er­ty, to the per­son in pos­ses­sion of the
• A debtor, pro­hib­it­ed under clause (a) of sub-rule (1), may pay the amount of his debt to the prop­er offi­cer, and such pay­ment shall be deemed as paid to the

 

11. Attach­ment of prop­er­ty in cus­tody of courts or Pub­lic — Where the prop­er­ty to be attached is in the cus­tody of any court or Pub­lic Offi­cer, the prop­er offi­cer shall send the order of attach­ment to such court or offi­cer, request­ing that such prop­er­ty, and any inter­est or div­i­dend becom­ing payable there­on, may be held till the recov­ery of the amount payable.

 

12. Attach­ment of inter­est in part­ner­ship.- (1) Where the prop­er­ty to be attached con­sists of an inter­est of the default­er, being a part­ner, in the part­ner­ship prop­er­ty, the prop­er offi­cer may make an order charg­ing the share of such part­ner in the part­ner­ship prop­er­ty and prof­its with pay­ment of the amount due under the cer­tifi­cate, and may, by the same or sub­se­quent order, appoint a receiv­er of the share of such part­ner in the prof­its, whether already declared or accru­ing, and of any oth­er mon­ey which may become due to him in respect of the part­ner­ship, and direct accounts and enquiries and make an order for the sale of such inter­est or such oth­er order as the cir­cum­stances of the case may

(2) The oth­er part­ners shall be at lib­er­ty at any time to redeem the inter­est charged or, in the case of a sale being direct­ed, to pur­chase the same.

 

13. Dis­pos­al of pro­ceeds of sale of goods and mov­able or immov­able prop­er­ty.- The amounts so realised from the sale of goods, mov­able or immov­able prop­er­ty, for the recov­ery of dues from a default­er shall,- 
    • first, be appro­pri­at­ed against the admin­is­tra­tive cost of the recov­ery process;
    • next, be appro­pri­at­ed against the amount to be recovered;
    • 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
    • any bal­ance, be paid to the

 

 

14. Recov­ery through land rev­enue author­i­ty.- Where an amount is to be recov­ered in accor­dance with the pro­vi­sions of clause (e) of sub-sec­tion (1) of sec­tion 79, the prop­er offi­cer shall send a cer­tifi­cate to the Col­lec­tor or Deputy Com­mis­sion­er of the dis­trict or any oth­er offi­cer autho­rised in this behalf in FORM GST DRC-18 to recov­er from the per­son con­cerned, the amount spec­i­fied in the cer­tifi­cate as if it were an arrear of land
15. Recov­ery through court.- Where an amount is to be recov­ered as if it were a fine imposed under the Code of Crim­i­nal Pro­ce­dure, 1973, the prop­er offi­cer shall make an appli­ca­tion before the appro­pri­ate Mag­is­trate in accor­dance with the pro­vi­sions of clause (f) of sub-sec­tion (1) of sec­tion 79 in FORM GST DRC- 19 to recov­er from the per­son con­cerned, the amount spec­i­fied there­un­der as if it were a fine imposed by

 

16. Recov­ery from sure­ty.- Where any per­son has become sure­ty for the amount due by the default­er, he may be pro­ceed­ed against under this Chap­ter as if he were the

 

17. Pay­ment of tax and oth­er amounts in instal­ments.- (1) On an appli­ca­tion filed elec­tron­i­cal­ly by a tax­able per­son, in FORM GST DRC- 20, seek­ing exten­sion of time for the pay­ment of tax­es or any amount due under the Act or for allow­ing pay­ment of such tax­es or amount in instal­ments in accor­dance with the pro­vi­sions of sec­tion 80, the Com­mis­sion­er shall call for a report from the juris­dic­tion­al offi­cer about the finan­cial abil­i­ty of the tax­able per­son to pay the said

• Upon con­sid­er­a­tion of the request of the tax­able per­son and the report of the juris­dic­tion­al offi­cer, the Com­mis­sion­er may issue an order in FORM GST DRC- 21 allow­ing the tax­able per­son fur­ther time to make pay­ment and/or to pay the amount in such month­ly instal­ments, not exceed­ing twen­ty-four, as he may deem
• The facil­i­ty referred to in sub-rule (2) shall not be allowed where- 
  • the tax­able per­son has already default­ed on the pay­ment of any amount 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, for which the recov­ery process is on;
  • the tax­able per­son has not been allowed to make pay­ment in instal­ments in the pre­ced­ing finan­cial year 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;
  • the amount for which instal­ment facil­i­ty is sought is less than twenty–five thou­sand rupees.

 

18. Pro­vi­sion­al attach­ment of — (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.

• 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
• 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
• 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
• 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.

 

• 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.

 

 

19. Recov­ery from com­pa­ny in liq­ui­da­tion.- Where the com­pa­ny is under liq­ui­da­tion as spec­i­fied in sec­tion 88, the Com­mis­sion­er shall noti­fy the liq­uida­tor for the recov­ery of any amount rep­re­sent­ing tax, inter­est, penal­ty or any oth­er amount due under the Act in FORM GST DRC ‑24.

Con­tin­u­a­tion of cer­tain recov­ery pro­ceed­ings.- The order for the reduc­tion or enhance­ment of any demand under sec­tion 84 shall be issued in FORM GST DRC- 25.