Let us look at chapter 18 of CGST rules – Demands and Recovery. This text is taken from http://www.cbec.gov.in/resources//htdocs-cbec/gst/cgst-rules-01july2017%20.pdf
Notice and Order for Demand of Amounts Payable Under the Act
section 74, a summary thereof electronically in FORM GST DRC-02,
specifying therein the details of the amount payable.
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 subsection
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.
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.
sub-section (9) of section 74 or sub-section (3) of section 76 shall be in FORM GST DRC-06.
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 tax.
for recovery.
section 161, shall be made by the proper officer in FORM GST DRC-08.
Recovery by Deduction From Any Money Owed
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.
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,
Union territory or a local authority.
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 process.
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 sale.
earlier than fifteen days from the date of issue of the notice referred to in sub-rule (2):
where the expenses of keeping them in custody are likely to exceed their value, the proper officer may sell them forthwith.
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 be.
FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of auction.
possession of the said goods to the successful bidder and issue a certificate in FORM GST DRC-12.
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 goods.
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.
Recovery From a Third Person
“the third person”), a notice in FORM GST DRC-13 directing him to deposit the amount specified in the notice.
Recovery through Execution of a Decree, etc
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 recoverable.
Recovery by Sale of Movable or Immovable Property
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:
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.
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.
sub-rule (1) is-
affixed on the said property and shall remain affixed till the confirmation of sale;
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 him.
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 sale.
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
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 share.
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 be.
shall not be earlier than fifteen days from the date of issue of the notice referred to in sub-rule (4):
where the expenses of keeping them in custody are likely to exceed their value, the proper officer may sell them forthwith.
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.
(9) 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 distraint.
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
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.
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
proceed with the process of sale through auction.
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.
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 transferred.
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 goods.
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.
Prohibition Against Bidding or Purchase by Officer
Prohibition Against Sale on Holidays
holiday for the area in which the sale is to take place.
Assistance by Police
discharge of his duties and the said officer-in-charge shall depute sufficient number of police officers for providing such assistance.
Attachment of Debts and Shares, etc
shall be attached by a written order in FORM GST DRC-16 prohibiting.-
debtor from making payment thereof until the receipt of a further order from the proper officer;
standing from transferring the same or receiving any dividend thereon;
the same from giving it to the defaulter.
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 same.
amount of his debt to the proper officer, and such payment shall be deemed as paid to the defaulter.
Attachment of Property in Custody of Courts or Public Officer
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.
Attachment of Interest in Partnership
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 require.
interest charged or, in the case of a sale being directed, to purchase the same.
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,-
process;
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
Recovery Through Land Revenue Authority
Recovery Through Court
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 him.
Recovery From Surety
Payment of Tax and Other Amounts in Instalments
the Commissioner shall call for a report from the jurisdictional officer about the financial ability of the taxable person to pay the said amount.
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 fit.
(a) 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;
(b) 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;
twenty–five thousand rupees.
Provisional Attachment of Property
details of property which is attached.
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.
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.
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.
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
GST DRC- 23.
or is no longer liable for attachment, release such property by issuing an order in FORM GST DRC- 23.
Recovery from Company in Liquidation
under the Act in FORM GST DRC -24.