TaxTMI 
TaxTMI 
Guidelines for provisional attachment of property under Section 83 of the CGST Act, 2017
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....CGST Rules. The said guidelines issued by the CBIC are adopted under the OGST Act and may be followed scrupulously. Yours faithfully, Special Commissioner CT & GST (Policy) CBEC-20/16/05/2021-GST/359 GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS GST POLICY WING New Delhi, dated: 23.02.2021 To, The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All) The Principal Director Generals Director Generals (All) Subject: Guidelines for provisional attachment of property under section 83 of the CGST Act, 2017 - Reg. I am directed to refer to the section 83 of the ....
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....f the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the taxable person in such manner as may be prescribed (2) Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (1)." 3.1.2 Perusal of the above provision of the law suggests that the followings grounds must exist for resorting to provisional attachment of property under the provisions of section 83 of the Act: (i) There must be pendency of a proceeding against a taxable person under the sections mentioned in section 83 of the Act. (ii) The Commission....
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....ty 3.2.1 In case, the Commissioner forms an opinion to attach any property, including bank account, of the taxable person in terms of section 83, he should duly record on file the basis, on which he has formed such an opinion. He should, thereafter, pass an order in FORM GST DRC-22 with proper Document Identification Number (DIN) mentioning therein the details of property being attached. 3.2.2 A copy of the order of attachment should be sent to the concerned Revenue Authority or Transport Authority or Bank or the relevant Authority to place encumbrance on the said movable or immovable property. The property, thus attached, shall be removed only on the written instructions from the Commissioner. 3.2.3 A copy of such a....
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....ature, then such property shall be released to the taxable person by issuing order in FORM GST DRC-23, after 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, and submits proof of payment. In case the taxable person fails to pay the said amount, then the said property of perishable / hazardous nature may be disposed of and the amount recovered from such disposal of property shall be adjustable against the tax, interest, penalty, fee or any other amount payable by the taxable person. Further, the sale proceeds thus obtained must be deposited in the nearest Government Treasury or branch of any nationalised bank in fixed depo....
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....vernment beyond a period of three months from the date on which such payment becomes due; or e. fraudulently obtained refund; or f. passed on input tax credit fraudulently to the recipients but has not paid the commensurate tax 3.3.2 The above list is illustrative only and not exhaustive. The Commissioner, may examine the specific facts of the case and take a reasoned view in the matter. 3.4 Types of property that can be attached 3.4.1 It should be ensured that the value of property attached provisionally is not excessive. The provisional attachment of property shall be to the extent it is required to protect the interest of revenue, that is to say, the value of attached property should be as near as possible to t....
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....ncumbrances, property tax fully paid up to date and not involved in any legal dispute. The taxable person must produce the original title deeds and other necessary information relating to the property, for the satisfaction of the concerned officer. 3.5 Attachment Period 3.5.1 Every provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the provisional attachment order. 3.5.2 Besides, the provisional attachment order shall also cease to have effect if an order in FORM GST DRC-23 for release of such property is made by the Commissioner. 3.6 Investigation and Adjudication As the provisional attachment of property is resorted to protect the interests of the revenue an....