DEMANDS AND RECOVER
Notice and Order for Demand of Amounts Payable Under the Act
(1) Under Section 2(91) of the
CGST Act, 2017 defines “proper officer” in
relation to any function to be performed under this Act, means
the Commissioner or the officer of the
Central tax who is assigned that function by the Commissioner in the Board.The proper officer
shall serve, along with the:
(a) notice under sub-section (1) of section
73 or sub-section (1) of section 74 or subsection (2) of section 76, a summary
thereof electronically in FORM GST DRC-01,
(b) 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.
(2) 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 subsection (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.
(3) 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.
(4) 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.
(5) 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
tax.
(6) The order referred to in sub-rule (5)
shall be treated as the notice for recovery.
(7) 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.
Recovery by Deduction
From Any Money Owed
Recovery by Sale of Goods
Under the Control of Proper Officer
(2) 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(3)
(3)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.
(4) 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 be.
(5) 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.
(6) 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 goods.
(7) 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.
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
(1) The proper officer may serve upon
a person referred to in clause (c) 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
notice.
(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.
Recovery through Execution of a Decree
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 recoverable.
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.
(2) 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.
(3) Where the property subject to the
attachment or distraint under
sub-rule (1) is-
sub-rule (1) is-
(a) 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;
(b) 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 him.
(4) 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 sale.
(5) 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 share.
(6) 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 be.
(7) 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.
(8) 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.
(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.
(10) 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.
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.
(11) 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 auction.
(12) 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:
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.
(13) 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
transferred.
(14) 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 goods.
(15) 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.
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 sold.
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 place.
Assistance by Police
The proper officer may seek such assistance
rom 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
assistance.
Attachment of Debts and Shares
(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 prohibiting.-
(a) 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;
(b) 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
(c) in the case of any other movable
property, the person in possession of the same from giving it to the
defaulter.
(2) 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 same.
(3) 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 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
(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 require.
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,
(a) first, be appropriated against the
administrative cost of the recovery
process.
process.
(b) next, be appropriated against the
amount to be recovered.
(c) 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.
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.
(d) Any balance, be paid to the defaulter.
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
revenue.
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 him.
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 defaulter.
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 amount.
(2) 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 fit.
(3) The facility referred to in sub-rule
(2) shall not be allowed where-
(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;
(c) the amount for which instalment
facility is sought is less than twenty–five thousand rupees.
Provisional Attachment of Property
(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.
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.
Let us look at chapter 18 of CGST rules:- http://www.cbic.gov.in/
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