The 52nd Goods and Services Tax (GST) Council Meeting, presided by Union Finance Minister, held on October 7th, 2023. The minister was accompanied by Revenue Secretary Sanjay Malhotra, State Finance Minister Pankaj Chaudhary, CBIC chairman ..etc.
The Council has recommended an amendment in sub-rule (2) of Rule 159 of CGST Rules, 2017 and FORM GST DRC-22 to provide that the order for provisional attachment in FORM GST DRC-22 shall not be valid after expiry of one year from the date of the said order. This will facilitate release of provisionally attached properties after expiry of a period of one year, without need for separate specific written order from the Commissioner.
Read More: 52nd GST Council Meeting: Key Highlights
Regarding the legal background, the Commissioner has the power to provisionally attach the property of the taxpayer to protect the interests of the Revenue under section 83 of the CGST Act, 2017. This order for provisional attachment is passed in Form GST DRC-22.
After the order in Form GST DRC-22 is passed, the taxpayer can respond to the same by filing an objection within 7 days from the date of passing of the order. He will be given an opportunity to explain why the said property should not be attached.
In case the property attached is of a perishable or hazardous nature, the taxpayer will have to either settle the relevant tax dues or pay the market price for the property, whichever is lower. Upon settlement, the Commissioner will release such property by passing an order in DRC-23. If the taxpayer does not agree to either pay the market price of the property or settle the relevant tax dues, the Commissioner may dispose of the property and apply the proceeds against the dues of the taxpayer.
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