Recovery of Tax Under GST (Happy gst series 16) by CA Rajender Arora
Section 79 of the CGST Act, 2017 read with Rule 143, 144, 145, 147, 155, 156, 157 of the CGST
Rules, 2017 governs the provisions for Recovery of Tax.
1. When recovery proceedings can be initiated?
As per sub-section (1) of section 79 of the CGST Act, 2017, where any amount payable by a
person to the Government under any of the provisions of this Act or the rules made thereunder
is not paid, the proper officer shall proceed to recover the amount by various modes.
2. What are the various modes for recovery u/s 79 of the CGST Act, 2017?
The various modes of recovery u/s 79 of the CGST Act, 2017 are as follows:-
Name Section Relevant
Rule
Description
Recovery
by
deduction
from any
money
owed
clause (a)
of sub-
section (1)
of section
79
143 The proper officer (PO) or may require any other specified
officer in FORM GST DRC-09 to deduct the money
payable which is under their control.
Recovery
by sale of
goods
under the
control of
proper
officer
clause (b)
of sub-
section (1)
of section
79
144 The PO 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
through a process of auction, including e-auction, for
which a notice shall be issued in FORM GST DRC-10
clearly indicating the goods and the purpose. The PO 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 PO shall transfer the
possession of the said goods to the successful bidder and
issue a certificate in FORM GST DRC-12.
Recovery
from a
third
person
clause (c)
of sub-
section (1)
of section
79
145 The PO may serve upon a notice in FORM GST DRC-13
directing any person from whom money is due or may
become due to such person or who holds or may
subsequently hold money for or on account of such person
and includes post office, banking company or an insurer
i.e. third person to deposit the amount specified in the
notice. The PO shall issue a certificate in FORM GST
DRC-14 to him clearly indicating details of liability so
discharged.
Recovery
by sale of
movable
or
clause (d)
of sub-
section (1)
of section
147 The PO shall prepare a list of movable and immovable
property, estimate their market value 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
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immovable
property
79 movable and immovable property and shall send a copy of
the order of attachment or distraint to the concerned
Authority. 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. The PO
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. Where the defaulter pays the
amount under recovery, including any expenses incurred
on the process of recovery, before the issue of the notice,
the PO shall cancel the process of auction and release the
goods.
Recovery
through
land
revenue
authority
clause (e)
of sub-
section (1)
of section
79
155 The PO shall send a certificate to the Collector or Deputy
Commissioner of the district in which such person owns
any property or resides or carries on his business 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
clause (f)
of sub-
section (1)
of section
79
156 N otwithstanding anything contained in the Code of
Criminal Procedure, 1973 (2 of 1974), the PO may file an
application in FORM GST DRC- 19 to the appropriate
Magistrate and such Magistrate shall proceed to recover
from such person the amount specified thereunder as if it
were a fine imposed under the Code of Criminal
Procedure, 1973.
Recovery
from
surety
sub-
section (2)
of section
79
157 Where the terms of any bond or other instrument executed
under this Act or any rules or regulations made thereunder
and 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
