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TaxTMI 
The following rules of CGST Rules, 2017 are applicable for recovery under section 79 of CGST Act, 2017:
Rule | Relating to |
Procedure for recovery of dues under existing laws | |
Intimation of certain amounts liable to be recovered under section 79 of the Act | |
Recovery by deduction from any money owed | |
Recovery by sale of goods under the control of proper officer | |
Recovery of penalty by sale of goods and conveyance detained or seized in transit | |
Recovery from a third person | |
Recovery through execution of a decree, etc. | |
Recovery by sale of movable or immovable property | |
Prohibition against bidding or purchase by officer | |
Prohibition against sale on holidays | |
Assistance by police | |
Attachment of property in custody of courts or Public Officer | |
Disposal of proceeds of sale of goods and movable or immovable property | |
Recovery through land revenue authority | |
Recovery through court | |
Recovery from surety | |
Recovery from company in liquidation |
Recovery of penalty from sale (Rule 144A)
- Rule 144A has been inserted w.e.f. 01.01.2022 vide Notification No. 40/2021-CT, darted 20.12.2021 to provide for manner of recovery of penalty by sale of goods or conveyance detained or seized by the tax authorities while in transit. This rule stipulates that in the event of owner of goods or transporter of goods failing to pay the amount of penalty levied under section 129(1) of CGST Act, 2017 within 15 days of the communication of the order, the proper officer shall effect sale or disposal of the goods or conveyance detained or seized after preparing an inventory of the sale and determining the estimated market value of the subject goods or conveyance.
- It may be noted that section 129 is an over-riding provision providing for detention, seizure and release of goods and conveyance in transit.
- It further provides for levy of penalty but only after issuing a notice of seven days and providing opportunity of being heard. The goods shall be released only after payment of penalty.
- These goods shall be disposed off through a process of auction including e-auction. Rule 144A provides the manner of auction, timelines for billing, declaration of successful bidder, payment of bid amount and transfer of ownership to the successful bidder.
- Rule 144A does not apply in respect of perishable goods and goods of hazardous nature.
Intimation of certain amounts liable to be recovered under section 79 of the Act, 2017 (Rule 142B)
(1) Where, in accordance with section 75 read with rule 88C, or otherwise, any amount of tax or interest has become recoverable under section 79 and the same has remained unpaid, the proper officer shall intimate, electronically on the common portal, the details of the said amount in FORM GST DRC-01D, directing the person in default to pay the said amount, along with applicable interest, or, as the case may the amount of interest, within seven days of the date of the said intimation and the said amount shall be posted in Part-II of Electronic Liability Register in FORM GST PMT-01.
(2) The intimation referred to in sub-rule (1) shall be treated as the notice for recovery.
(3) Where any amount of tax or interest specified in the intimation referred to in sub-rule (1) remains unpaid on the expiry of the period specified in the said intimation, the proper officer shall proceed to recover the amount that remains unpaid in accordance with the provisions of rule 143 or rule 144 or rule 145 or rule 146 or rule 147 or rule 155 or rule 156 or rule 157 or rule 160.
Rule 142B provides for the manner of intimation of amounts liable to be recovered under section 79 of the CGST Act, 2017.
- Where any amount of tax or interest becomes recoverable under section 79 which has remained unpaid, proper officer is required to intimate to the taxpayer the amount due electronically on the portal.
- The details of amount due shall be uploaded in FORM GST DRC-01D directing him to pay the amount of tax or interest or both within seven days of such intimation.
- The amount shall be posted in Part-II of electronic liability register in form GST PMT-01.
- This intimation shall be treated as notice of recovery.
- If the amount due as per intimation is not paid within stipulated time, proper officer shall proceed to recover the unpaid amount in accordance with Rules 143 or 144 or 145 or 146 or 147 or 155 or 156 or 157 or 160 of the CGST Rules, 2017.