Rule

Description

Assessment and audit

98.

Provisional Assessments

(1)

Every
registered person requesting for payment of tax on a provisional basis in
accordance with the provisions of sub-section (1) of section 60 shall furnish
an application along with the documents in support of his request,
electronically in FORM GST ASMT-01
on the common portal, either directly or through a Facilitation Centre
notified by the Commissioner.

(2)

The
proper officer may, on receipt of the application under sub-rule (1), issue a
notice in FORM GST ASMT-02
requiring the registered person to furnish additional information or
documents in support of his request and the applicant shall file a reply to
the notice in FORM GST ASMT – 03,
and may appear in person before the said officer if he so desires.

(3)

The
proper officer shall issue an order in FORM
GST ASMT-04
allowing the payment of tax on a provisional basis indicating
the value or the rate or both on the basis of which the assessment is to be
allowed on a provisional basis and the amount for which the bond is to be
executed and security to be furnished not exceeding twenty five per cent. of
the amount covered under the bond.

(4)

The
registered person shall execute a bond in accordance with the provisions of
sub-section (2) of section 60 in FORM
GST ASMT-05
along with a security in the form of a bank guarantee for an
amount as determined under sub-rule (3):

Provided
that a bond furnished to the proper officer under the State Goods and
Services Tax Act or Integrated Goods and Services Tax Act shall be deemed to
be a bond furnished under the provisions of the Act and the rules made
thereunder.

Explanation.-
For the purposes of this rule, the expression “amount” shall include the
amount of integrated tax, central tax, State tax or Union territory tax and cess
payable in respect of the transaction.

(5)

 

The
proper officer shall issue a notice in FORM
GST ASMT-06
, calling for information and records required for
finalization of assessment under sub-section (3) of section 60 and shall
issue a final assessment order, specifying the amount payable by the
registered person or the amount refundable, if any, in FORM GST ASMT-07.

(6)

The
applicant may file an application in FORM
GST ASMT- 08
for the release of the security furnished under sub-rule (4)
after issue of the order under sub-rule (5).

(7)

The
proper officer shall release the security furnished under sub-rule (4), after
ensuring that the applicant has paid the amount specified in sub-rule (5) and
issue an order in FORM GST ASMT–09
within a period of seven working days from the date of the receipt of the
application under sub-rule (6).

99.

Scrutiny of returns

(1)

Where
any return furnished by a registered person is selected for scrutiny, the
proper officer shall scrutinize the same in accordance with the provisions of
section 61 with reference to the information available with him, and in case
of any discrepancy, he shall issue a notice to the said person in FORM GST ASMT-10, informing him of
such discrepancy and seeking his explanation thereto within such time, not
exceeding thirty days from the date of service of the notice or such further
period as may be permitted by him and also, where possible, quantifying the
amount of tax, interest and any other amount payable in relation to such
discrepancy.

(2)

The
registered person may accept the discrepancy mentioned in the notice issued
under sub-rule (1), and pay the tax, interest and any other amount arising
from such discrepancy and inform the same or furnish an explanation for the
discrepancy in FORM GST ASMT-11 to
the proper officer.

(3)

Where
the explanation furnished by the registered person or the information submitted
under sub-rule (2) is found to be acceptable, the proper officer shall inform
him accordingly in FORM GST ASMT-12.

100.

Assessment in certain cases

(1)

The
order of assessment made u/s 62(1) shall be issued in FORM GST ASMT-13.

(2)

The
proper officer shall issue a notice to a taxable person in accordance with
the provisions of section 63 in FORM
GST ASMT-14
containing the grounds on which the assessment is proposed to
be made on best judgment basis and after allowing a time of fifteen days to
such person to furnish his reply, if any, pass an order in FORM GST ASMT-15.

(3)

 

The
order of summary assessment u/s 64(1) shall be issued in FORM GST ASMT-16.

(4)

The
person referred to in section 64(2) may file an application for withdrawal of
the summary assessment order in FORM
GST ASMT–17
.

(5)

The
order of withdrawal or, as the case may be, rejection of the application u/s
64(2) shall be issued in FORM GST
ASMT-18
.

101.

Audit

(1)

The
period of audit to be conducted u/s 65(1) shall be a financial year or
multiples thereof.

(2)

Where it is decided to undertake the audit of a registered
person in accordance with the provisions of section 65, the proper officer
shall issue a notice in FORM GST ADT-01
in accordance with the provisions of sub-section (3) of the said section.

(3)

The proper officer authorised to conduct audit of the records
and the books of account of the registered person shall, with the assistance
of the team of officers and officials accompanying him, verify the documents
on the basis of which the books of account are maintained and the returns and
statements furnished under the provisions of the Act and the rules made
thereunder, the correctness of the turnover, exemptions and deductions
claimed, the rate of tax applied in respect of the supply of goods or
services or both, the input tax credit availed and utilised, refund claimed,
and other relevant issues and record the observations in his audit notes.

(4)

The proper officer may inform the registered person of the
discrepancies noticed, if any, as observed in the audit and the said person
may file his reply and the proper officer shall finalise the findings of the
audit after due consideration of the reply furnished.

(5)

On conclusion of the audit, the proper officer shall inform
the findings of audit to the registered person in accordance with the
provisions of section 65(6) in FORM
GST ADT-02
.

102.

Special
Audit

(1)

Where special audit is required to be conducted in accordance
with the provisions of section 66, the officer referred to in the said
section shall issue a direction in FORM
GST ADT-03
to the registered person to get his records audited by a
chartered accountant or a cost accountant specified in the said direction.

(2)

On conclusion of the special audit, the registered person
shall be informed of the findings of the special audit in FORM GST ADT-04.

Advance ruling

103.

Qualification
and appointment of members of the Authority for Advance Ruling

 

The Government shall appoint officers not below the rank of
Joint Commissioner as member of the Authority for Advance Ruling.

104.

Form
and manner of application to the Authority for Advance Ruling

(1)

An application
for obtaining an advance ruling u/s 97(1) shall be made on the common portal
in FORM GST ARA-01 and shall be
accompanied by a fee of five thousand rupees, to be deposited in the manner
specified in section 49.

(2)

The application referred to in sub-rule (1), the verification
contained therein and all the relevant documents accompanying such
application shall be signed in the manner specified in rule 26.

105.

Certification
of copies of advance rulings pronounced by the Authority

 

A copy of the advance ruling shall be certified to be a true
copy of its original by any member of the Authority for Advance Ruling.

106.

Form
and manner of appeal to the Appellate Authority for Advance Ruling

(1)

An appeal against the advance ruling issued u/s 98(6) shall be
made by an applicant on the common portal in FORM GST ARA-02 and shall be accompanied by a fee of ten thousand
rupees to be deposited in the manner specified in section 49.

(2)

An
appeal against the advance ruling issued u/s 98(6) shall be made by the
concerned officer or the jurisdictional officer referred to in section 100 on
the common portal in FORM GST ARA-03
and no fee shall be payable by the said officer for filing the appeal.

(3)

The
appeal referred to in sub-rule (1) or sub-rule (2), the verification
contained therein and all the relevant documents accompanying such appeal
shall be signed,-

(a)  in the case of the concerned officer or jurisdictional
officer, by an officer authorised in writing by such officer; and

(b)  in the case of an applicant, in the manner specified in rule
26.

107.

Certification
of copies of the advance rulings pronounced by the Appellate Authority

 

A copy of the advance ruling pronounced by the Appellate
Authority for Advance Ruling and duly signed by the Members shall be sent to-

(a)  the applicant and the appellant;

(b)  the concerned officer of central tax and State or Union
territory tax;

(c)  the jurisdictional officer of central tax and State or Union
territory tax; and

(d)  the Authority

in accordance with the provisions of section 101(4) of the
Act.

107A.

Manual
filing and processing

 

Notwithstanding anything contained in this Chapter, in respect
of any process or procedure prescribed herein, any reference to electronic
filing of an application, intimation, reply, declaration, statement or
electronic issuance of a notice, order or certificate on the common portal
shall, in respect of that process or procedure, include manual filing of the
said application, intimation, reply, declaration, statement or issuance of
the said notice, order or certificate in such Forms as appended to these
rules.

Appeals and revision

108.

Appeal to the Appellate Authority

(1)

An
appeal to the Appellate Authority u/s 107(1) shall be filed in FORM GST APL-01, along with the
relevant documents, either electronically or otherwise as may be notified by
the Commissioner and a provisional acknowledgement shall be issued to the
appellant immediately.

(2)

The
grounds of appeal and the form of verification as contained in FORM GST APL- 01 shall be signed in
the manner specified in rule 26.

(3)

A
certified copy of the decision or order appealed against shall be submitted
within seven days of filing the appeal under sub-rule (1) and a final
acknowledgement, indicating appeal number shall be issued thereafter in FORM GST APL-02 by the Appellate Authority
or an officer authorised by him in this behalf:

Provided
that where the certified copy of the decision or order is submitted within
seven days from the date of filing the FORM
GST APL-01
, the date of filing of the appeal shall be the date of the issue
of the provisional acknowledgement and where the said copy is submitted after
seven days, the date of filing of the appeal shall be the date of the
submission of such copy.

Explanation.–
For the provisions of this rule, the appeal shall be treated as filed only
when the final acknowledgement, indicating the appeal number, is issued.

109.

Application to the Appellate Authority

(1)

An
application to the Appellate Authority u/s 107(2) shall be made in FORM GST APL-03, along with the
relevant documents, either electronically or otherwise as may be notified by
the Commissioner.

(2)

A
certified copy of the decision or order appealed against shall be submitted
within seven days of the filing the application under sub-rule (1) and an
appeal number shall be generated by the Appellate Authority or an officer
authorised by him in this behalf.

109A.

Appointment of Appellate Authority

(1)

Any
person aggrieved by any decision or order passed under this Act or the State
Goods and Services Tax Act or the Union Territory Goods and Services Tax Act
may appeal to –

(a)
the Commissioner (Appeals) where such decision or order is passed by the Additional
or Joint Commissioner;

(b)
any officer not below the rank of Joint Commissioner (Appeals)
where such decision or
order is passed by the Deputy or Assistant Commissioner or Superintendent,
within three months from the date on which the said decision or order is
communicated to such person.

(2)

An
officer directed u/s 107(2) to appeal against any decision or order passed
under this Act or the State Goods and Services Tax Act or the Union Territory
Goods and Services Tax Act may appeal to –

(a)
the Commissioner (Appeals) where such decision or order is passed by the
Additional or Joint Commissioner;

(b)
any officer not below the rank of Joint Commissioner (Appeals)
where such decision or
order is passed by the Deputy or Assistant Commissioner or the Superintendent,
within six months from the date of communication of the said decision or
order.

110.

Appeal to the Appellate Tribunal

(1)

An
appeal to the Appellate Tribunal u/s 112(1) shall be filed along with the
relevant documents either electronically or otherwise as may be notified by
the Registrar, in FORM GST APL-05,
on the common portal and a provisional acknowledgement shall be issued to the
appellant immediately.

(2)

A
memorandum of cross-objections to the Appellate Tribunal u/s 112(5) shall be
filed either electronically or otherwise as may be notified by the Registrar,
in FORM GST APL-06.

(3)

The
appeal and the memorandum of cross objections shall be signed in the manner
specified in rule 26.

(4)

A
certified copy of the decision or order appealed against along with fees as
specified in sub-rule (5) shall be submitted to the Registrar within seven
days of the filing of the appeal under sub-rule (1) and a final
acknowledgement, indicating the appeal number shall be issued thereafter in FORM GST APL-02 by the Registrar:
Provided that where the certified copy of the decision or order is submitted
within seven days from the date of filing the FORM GST APL-05, the date of filing of the appeal shall be the
date of the issue of the provisional acknowledgement and where the said copy
is submitted after seven days, the date of filing of the appeal shall be the
date of the submission of such copy.

Explanation.–
For the purposes of this rule, the appeal shall be treated as filed only when
the final acknowledgement indicating the appeal number is issued.

(5)

The
fees for filing of appeal or restoration of appeal shall be one thousand
rupees for every one lakh rupees of tax or input tax credit involved or the
difference in tax or input tax credit involved or the amount of fine, fee or
penalty determined in the order appealed against, subject to a maximum of
twenty five thousand rupees.

(6)

There
shall be no fee for application made before the Appellate Tribunal for
rectification of errors referred to in section 112(10).

111.

Application to the Appellate Tribunal

(1)

An
application to the Appellate Tribunal u/s 112(3) shall be made electronically
or otherwise, in FORM GST APL-07,
along with the relevant documents on the common portal.

(2)

A
certified copy of the decision or order appealed against shall be submitted
within seven days of filing the application under sub-rule (1) and an appeal
number shall be generated by the Registrar.

112.

Production of additional evidence before the Appellate
Authority or the Appellate Tribunal.-

(1)

The appellant shall not be allowed to produce before the
Appellate Authority or the Appellate Tribunal any evidence, whether oral or documentary, other
than the evidence produced by him during the course of the proceedings before the
adjudicating authority or, as the case may be, the Appellate
Authority except in the following circumstances, namely:-

(e)    where the adjudicating authority or, as the case may be, the
Appellate Authority has refused to admit evidence which ought to have been
admitted; or

(f)where the appellant was prevented by sufficient cause from
producing the evidence which he was called upon to produce by the
adjudicating authority or, as the case may be, the Appellate Authority; or

(g)    where the appellant was prevented by sufficient cause from
producing before the adjudicating authority or, as the case may be, the
Appellate Authority any evidence which is relevant to any ground of appeal; or

(h)    where the adjudicating authority or, as the case may be, the
Appellate Authority has made the order appealed against without giving
sufficient opportunity to the appellant to adduce evidence relevant to any
ground of appeal.

(2)

No
evidence shall be admitted under sub-rule (1) unless the Appellate Authority
or the Appellate Tribunal records in writing the reasons for its admission.

(3)

The
Appellate Authority or the Appellate Tribunal shall not take any evidence
produced under sub-rule (1) unless the adjudicating authority or an officer uthorized
in this behalf by the said authority has been allowed a reasonable
opportunity –

to
examine the evidence or document or to cross-examine any witness produced by
the appellant; or to produce any evidence or any witness in rebuttal of the
evidence produced by the appellant under sub-rule (1).

(4)

Nothing
contained in this rule shall affect the power of the Appellate Authority or
the Appellate Tribunal to direct the production of any document, or the
examination of any witness, to enable it to dispose of the appeal.

113.

Order of
Appellate Authority or Appellate Tribunal

(1)

 The Appellate Authority shall, along with
its order u/s 107(11), issue a summary of the order in FORM GST APL-04 clearly indicating the final amount of demand
confirmed.

(2)

The
jurisdictional officer shall issue a statement in FORM GST APL-04 clearly indicating the final amount of demand
confirmed by the Appellate Tribunal.

114.

Appeal to the High Court

(1)

An appeal
to the High Court u/s 117(1) shall be filed in FORM GST APL-08.

(2)

The
grounds of appeal and the form of verification as contained in FORM GST APL-08 shall be signed in
the manner specified in rule 26

115.

Demand confirmed by the Court

 

The
jurisdictional officer shall issue a statement in FORM GST APL-04 clearly indicating the final amount of demand
confirmed by the High Court or, as the case may be, the Supreme Court.

116.

Disqualification for misconduct of an uthorized representative.-

 

Where
an uthorized representative, other than those referred to in section 116(2)(b)
or 116(2)(c) is found, upon an enquiry into the matter, guilty of misconduct
in connection with any proceedings under the Act, the Commissioner may, after
providing him an opportunity of being heard, disqualify him from appearing as
an uthorized representative.

Anti-profiteering

122.

Constitution of the Authority

 

The
Authority shall consist of,-

(i)   a Chairman who holds or has held a post equivalent in rank to
a Secretary to the Government of India; and

(j)   4 Technical Members who are or have been Commissioners of
State tax or central tax for at least one year or have held an equivalent
post under the existing law, to be nominated by the Council.

123.

Constitution of the Standing Committee and Screening Committees

(1)

The
Council may constitute a Standing Committee on Anti-profiteering which shall
consist of such officers of the State Government and Central Government as
may be nominated by it.

 

(2)

A State level Screening Committee shall be constituted in each
State by the State Governments which shall consist of-

(a)      
1 officer
of the State Government, to be nominated by the Commissioner

(b)     
1 officer
of the Central Government, to be nominated by the Chief Commissioner

124.

Appointment, salary, allowances and other terms and conditions
of service of the Chairman and Members of the Authority

(1)

The Chairman and Members of the Authority shall be appointed
by the Central Government on the recommendations of a Selection Committee to
be constituted for the purpose by the Council.

(2)

The
Chairman shall be paid a monthly salary of Rs. 2,25,000 (fixed) and other
allowances and benefits as are admissible to a Central Government officer
holding posts carrying the same pay:

Provided
that where a retired officer is selected as a Chairman, he shall be paid a
monthly salary of Rs. 2,25,000 reduced by the amount of pension.

(3)

 The Technical Member
shall be paid a monthly salary and other allowances and benefits as are
admissible to him when holding an equivalent Group ‘A’ post in the Government
of India:

Provided that where a retired officer is selected as a
Technical Member, he shall be paid a monthly salary equal to his last drawn
salary reduced by the amount of pension in accordance with the
recommendations of the Seventh Pay Commission, as accepted by the Central
Government.

(4)

The Chairman shall hold office for a term of two years from
the date on which he enters upon his office, or until he attains the age of
sixty- five years, whichever is earlier and shall be eligible for
reappointment:

Provided that a person shall not be selected as the Chairman,
if he has attained the age of 62 years.

Provided further that the Central Government with the approval
of the Chairperson of the Council may terminate the appointment of the
Chairman at any time.

(5)

The Technical Member of the Authority shall hold office for a
term of two years from the date on which he enters upon his office, or until
he attains the age of sixty-five years, whichever is earlier and shall be
eligible for reappointment:

Provided that a person shall not be selected as a Technical
Member if he has attained the age of sixty-two years.

Provided further that the Central Government with the approval
of the Chairperson of the Council may terminate the appointment of the
Technical Member at any time.

125.

Secretary to the Authority

 

An officer not below the rank of Additional Commissioner
(working in the Directorate General of Anti-profiteering) shall be the
Secretary to the Authority.

126.

Power to determine the methodology and
procedure

 

The Authority may determine the methodology and procedure for
determination as to whether the reduction in the rate of tax on the supply of
goods or services or the benefit of input tax credit has been passed on by
the registered person to the recipient by way of commensurate reduction in
prices.

127.

Duties of the Authority

 

 It shall be the duty of the
Authority,-

(i)
to
determine whether any reduction in the rate of tax on any supply of goods or services or the benefit
of input tax
credit has been passed on to the recipient
by way of commensurate reduction in prices;

(ii)  
to
identify the registered person who has not passed on the benefit of reduction
in the rate of tax on supply
of goods or services or the benefit
of input tax credit
to the recipient by way of commensurate reduction in prices;

(iii) to order,

(a)   
reduction
in prices;

(b)   
return to the recipient, an amount equivalent to the amount
not passed on by way of
commensurate reduction in prices along with interest at the rate of eighteen
per cent. From the date of collection of the higher amount till the date of
the return of such amount or recovery of the amount not returned, as the case
may be, in case the eligible person does not claim return of the amount or is
not identifiable, and depositing the same in the Fund referred to in section 57;

(c)   
imposition
of penalty as specified in the Act; and

(d)  
cancellation
of registration under the Act.

(iv) to furnish a performance report to the Council by the 10th
day of the close of each quarter.

128.

Examination of application by the
Standing Committee and Screening Committee.-

(1)

 The Standing Committee
shall, within a period of two months from the date of the receipt of a
written application, in such form and manner as may be specified by it, from
an interested party or from a Commissioner or any other person, examine the
accuracy and adequacy of the evidence provided in the application to
determine whether there is prima- facie evidence to support the claim of the
applicant that the benefit of reduction in the rate of tax on any supply of
goods or services or the benefit of input tax credit has not been passed on
to the recipient by way of commensurate reduction in prices.

(2)

All applications from interested parties on issues of local
nature shall first be examined by the State level Screening Committee and the
Screening Committee shall, upon being satisfied that the supplier has
contravened the provisions of section 171, forward the application with its
recommendations to the Standing Committee for further action.

129.

Initiation and conduct of proceedings

(1)

Where the Standing Committee is satisfied that there is a
prima-facie evidence to show that the supplier has not passed on the benefit
of reduction in the rate of tax on the supply of goods or services or the
benefit of input tax credit to the recipient by way of commensurate reduction
in prices, it shall refer the matter to the Director General of Anti-profiteering
for a detailed investigation.

(2)

The Director General of Anti-profiteering shall conduct
investigation and collect evidence necessary to determine whether the benefit
of reduction in the rate of tax on any supply of goods or services or the
benefit of input tax credit has been passed on to the recipient by way of
commensurate reduction in prices.

(3)

The Director General of Anti-profiteering shall, before
initiation of the investigation, issue a notice to the interested parties
containing, inter alia, information on the following, namely:-

(a)   
the
description of the goods or services in respect of which the proceedings have
been initiated;

(b)  
summary of
the statement of facts on which the allegations are based; and

(c)   
the time
limit allowed to the interested parties and other persons who may have
information related to the proceedings for furnishing their reply.

(4)

The Director General of Anti-profiteering may also issue
notices to such other persons as deemed fit for a fair enquiry into the
matter.

(5)

The Director General of Anti-profiteering shall make available
the evidence presented to it by one interested party to the other interested
parties, participating in the proceedings.

(6)

The Director General of Anti-profiteering shall complete the
investigation within a period of three months of the receipt of the reference
from the Standing Committee or within such extended period not exceeding a
further period of three months for reasons to be recorded in writing as may
be allowed by the Authority
and, upon
completion of the investigation, furnish to the Authority, a report of its
findings along with the relevant records.

130.

Confidentiality of information

(1)

Notwithstanding anything contained in sub-rules (3) and (5) of
rule 129 and sub-rule (2) of rule 133, the provisions of section 11 of the
Right to Information Act, 2005 (22 of 2005), shall apply mutatis mutandis to
the disclosure of any information which is provided on a confidential basis.

(2)

The Director General of Anti-profiteering may require the
parties providing information on confidential basis to furnish
non-confidential summary thereof and if, in the opinion of the party
providing such information, the said information cannot be uthorized, such
party may submit to the Director General of Anti-profiteering a statement of
reasons as to why uthorizedon is not possible.

131.

Cooperation with other agencies or
statutory authorities

 

Where the Director General of Anti-profiteering deems fit, he
may seek opinion of any other agency or statutory authorities in the
discharge of his duties.

132.

Power to summon persons to give
evidence and produce documents

(1)

The Director General of Anti-profiteering, or an officer uthorized
by him in this behalf, shall be deemed to be the proper officer to exercise
the power to summon any person whose attendance he considers necessary either
to give evidence or to produce a document or any other thing under section 70
and shall have power in any inquiry in the same manner, as provided in the
case of a civil court under the provisions of the Code of Civil Procedure,
1908 (5 of 1908).

(2)

Every such inquiry referred to in sub-rule (1) shall be deemed
to be a judicial proceedings within the meaning of sections 193 and 228 of
the Indian Penal Code (45 of 1860).

133.

Order of the Authority

(1)

The Authority shall, within a period of three months from the
date of the receipt of the report from the Director General of Anti-profiteering
determine whether a registered person has passed
on the benefit
of the reduction in the rate of tax
on the supply of goods or
services or the benefit of input tax credit to the recipient by way of
commensurate reduction in prices.

(2)

An opportunity of hearing shall
be granted to the interested parties by the Authority where any request is received in writing
from such interested parties.

(3)

Where the Authority determines that a registered person has
not passed on the benefit of the reduction in the rate of tax on the supply
of goods or services or the benefit of input tax credit to the recipient by
way of commensurate reduction in prices, the Authority may order-

(a) reduction in prices;

(b) return to the recipient, an amount equivalent to the
amount not passed on by way of commensurate reduction in prices along with
interest at the rate of 18% from the date of collection of the higher amount
till the date of the return of such amount or recovery of the amount
including interest not returned, as the case may be;

I the deposit of an amount equivalent to 50% of the amount
determined under the above clause in the Fund constituted u/s 57 and the
remaining 50% of the amount in the Fund constituted u/s 57 of the GST Act of
the concerned State, where the eligible person does not claim return of the
amount or is not identifiable;

(d) imposition of penalty as specified under the Act; and

(e) cancellation of registration under the Act. [Notification No.26/2018]

(4)

If the report of the Director General of Anti-profiteering
referred to in rule 129(6) recommends that there is contravention or even
non-contravention of the provisions of section 171 or these rules, but the
Authority is of the opinion that further investigation or inquiry is called
for in the matter, it may, for reasons to be recorded in writing, refer the
matter to the Director General of Anti-profiteering to cause further
investigation or inquiry in accordance with the provisions of the Act and
these rules.

134.

Decision to be taken by the majority

(1)

A minimum of three members of the Authority shall constitute
quorum at its meetings.

(2)

If the Members of the Authority differ in their opinion on any
point, the point shall be decided according to the opinion of the majority of
the members present and voting, and in the event of equality of votes, the
Chairman shall have the second or casting vote.

135.

Compliance by the registered person

 

Any order passed by the Authority under these rules shall be
immediately complied with by the registered person failing which action shall
be initiated to recover the amount in accordance with the provisions of the
Integrated Goods and Services Tax Act or the Central Goods and Services Tax
Act or the Union territory Goods and Services Tax Act or the State Goods and
Services Tax Act of the respective States, as the case may be.

136.

Monitoring of the order

 

The Authority may require any authority of central tax, State
tax or Union territory tax to monitor the implementation of the order passed
by it

137.

Tenure of Authority

 

The Authority shall cease to exist after the expiry of two
years from the date on which the Chairman enters upon his office unless the
Council recommends otherwise.

 

Information to be furnished prior to commencement of movement
of goods and generation of e-way bill

 

E-WAY RULES

 

As per Notification No. 15/2018, following rules shall come into force w.e.f. 01.04.2018. Click here for FAQs on e-way bill.

138.

Information to be furnished prior to
commencement of movement of goods and generation of e-way bill

(1)

Every registered person who causes movement of goods of
consignment value exceeding fifty thousand rupees—

(7)  in relation to a supply; or

(ii) for reasons other than supply; or

(iii)due to inward supply from an unregistered person,

shall, before commencement of such movement, furnish
information relating to the said goods as specified in Part A of FORM GST EWB-01,
electronically, on the common portal along with such other information as may
be required on the common portal and a unique number will be generated on the
said portal:

Provided that the transporter, on an authorization received
from the registered person, may furnish information in Part A of FORM GST EWB-01,
electronically, on the common portal along with such other information as may
be required on the common portal and a unique number will be generated on the
said portal:

Provided further that where the goods to be transported are
supplied through an ecommerce operator or a courier agency, on an
authorization received from the consignor, the information in Part A of FORM GST EWB-01 may be furnished by such e-commerce operator or
courier agency and a unique number will be generated on the said portal:

Provided also that where goods are sent by a principal located
in one State or Union territory to a job worker located in any other State or
Union territory, the e-way bill shall be generated either by the principal or
the job worker, if registered, irrespective of the value of the consignment:

Provided also that where handicraft goods are transported from
one State or Union territory to another State or Union territory by a person
who has been exempted from the requirement of obtaining registration under
clauses (i) and (ii) of section 24, the e-way bill shall be generated by the
said person irrespective of the value of the consignment.

Explanation 1.– For the purposes of this rule, the expression
“handicraft goods” has the meaning as assigned to it in the Government of
India, Ministry of Finance, notification No. 32/2017-Central Tax dated the 15th
September, 2017 published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i), vide number G.S.R 1158 (E) dated the 15th
September, 2017 as amended from time to time.

 Explanation 2.- For the
purposes of this rule, the consignment value of goods shall be the value,
determined in accordance with the provisions of section 15, declared in an
invoice, a bill of supply or a delivery challan, as the case may be, issued
in respect of the said consignment and also includes the central tax, State
or Union territory tax, integrated tax and cess charged, if any, in the
document and shall exclude the value of exempt supply of goods where the
invoice is issued in respect of both exempt and taxable supply of goods.

(2)

Where the goods are transported by the registered person as a
consignor or the recipient of supply as the consignee, whether in his own
conveyance or a hired one or a public conveyance, by road, the said person
shall generate the e-way bill in FORM
GST EWB-01
electronically on the common portal after furnishing
information in Part B of FORM GST EWB-01.

(2A)

Where the goods are transported by railways or by air or
vessel, the e-way bill shall be generated by the registered person, being the
supplier or the recipient, who shall, either before or after the commencement
of movement, furnish, on the common portal, the information in Part B of FORM GST EWB-01:

Provided that where the goods are transported by railways, the
railways shall not deliver the goods unless the e-way bill required under
these rules is produced at the time of delivery.

(3)

Where the e-way bill is not generated under sub-rule (2) and
the goods are handed over to a transporter for transportation by road, the
registered person shall furnish the information relating to the transporter
on the common portal and the e-way bill shall be generated by the transporter
on the said portal on the basis of the information furnished by the
registered person in Part A of FORM GST EWB-01:

Provided that the registered person or, the transporter may,
at his option, generate and carry the e-way bill even if the value of the
consignment is less than fifty thousand rupees:

 Provided further that
where the movement is caused by an unregistered person either in his own
conveyance or a hired one or through a transporter, he or the transporter
may, at their option, generate the e-way bill in FORM GST EWB-01 on the common portal in the manner specified in
this rule:

Provided also that where the goods are transported for a
distance of upto fifty kilometers within the State or Union territory from
the place of business of the consignor to the place of business of the
transporter for further transportation, the supplier or the recipient, or as
the case may be, the transporter may not furnish the details of conveyance in
Part B of FORM GST EWB-01.

Explanation 1.– For the purposes of this sub-rule, where the
goods are supplied by an unregistered supplier to a recipient who is
registered, the movement shall be said to be caused by such recipient if the
recipient is known at the time of commencement of the movement of goods.

Explanation 2.- The e-way bill shall not be valid for movement
of goods by road unless the information in Part-B of FORM GST EWB-01
has been furnished except in the case of movements covered under the third
proviso to sub-rule (3) and the proviso to sub-rule (5).

(4)

Upon generation of the e-way bill on the common portal, a
unique e-way bill number (EBN) shall be made available to the supplier, the
recipient and the transporter on the common portal

(5)

Where the goods are transferred from one conveyance to
another, the consignor or the recipient, who has provided information in Part A of the FORM GST EWB-01, or the transporter shall, before such transfer
and further movement of goods, update the details of conveyance in the e-way
bill on the common portal in Part B
of FORM GST EWB-01: Provided that
where the goods are transported for a distance of upto fifty kilometers
within the State or Union territory from the place of business of the
transporter finally to the place of business of the consignee, the details of
the conveyance may not be updated in the e-way bill.

(5A)

The consignor or the recipient, who has furnished the
information in Part A of FORM GST EWB-01, or the transporter,
may assign the e-way bill number to another registered or enrolled
transporter for updating the information in Part B of FORM GST EWB-01
for further movement of the consignment:

Provided that after the details of the conveyance have been
updated by the transporter in Part B
of FORM GST EWB-01, the consignor
or recipient, as the case may be, who has furnished the information in Part A of FORM GST EWB-01 shall not be allowed to assign the e-way bill
number to another transporter.

(6)

After e-way bill has been generated in accordance with the
provisions of sub-rule (1), where multiple consignments are intended to be
transported in one conveyance, the transporter may indicate the serial number
of e-way bills generated in respect of each such consignment electronically
on the common portal and a consolidated e-way bill in FORM GST EWB-02 maybe generated by him on the said common portal
prior to the movement of goods.

(7)

Where the consignor or the consignee has not generated the
e-way bill in FORM GST EWB-01 and
the aggregate of the consignment value of goods carried in the conveyance is
more than fifty thousand rupees, the transporter, except in case of
transportation of goods by railways, air and vessel, shall, in respect of
inter-State supply, generate the e-way bill in FORM GST EWB-01 on the basis of invoice or bill of supply or
delivery challan, as the case may be, and may also generate a consolidated
e-way bill in FORM GST EWB-02 on
the common portal prior to the movement of goods:

Provided that where the goods to be transported are supplied
through an e-commerce operator or a courier agency, the information in Part A of FORM GST EWB-01 may be furnished by such e-commerce operator or
courier agency.

(8)

The information furnished in Part A of FORM GST EWB-01
shall be made available to the registered supplier on the common portal who
may utilize the same for furnishing the details in FORM GSTR-1:

Provided that when the information has been furnished by an
unregistered supplier or an unregistered recipient in FORM GST EWB-01, he shall be informed electronically, if the
mobile number or the e-mail is available.

(9)

Where an e-way bill has been generated under this rule, but
goods are either not transported or are not transported as per the details
furnished in the e-way bill, the e-way bill may be cancelled electronically
on the common portal within twenty four hours of generation of the e-way
bill:

Provided that an e-way bill cannot be cancelled if it has been
verified in transit in accordance with the provisions of rule 138B:

Provided further that the unique number generated under
sub-rule (1) shall be valid for a period of fifteen days for updation of Part B of FORM GST EWB-01.

(10)

An e-way bill or a consolidated e-way bill generated under
this rule shall be valid for the period as mentioned in column (3) of the
Table below from the relevant date, for the distance, within the country, the
goods have to be transported, as mentioned in column (2) of the said Table:-

Table

Distance

Validity period

Over Dimensional Cargo:

Up to 20 km

One day

For every 20 km or part thereof thereafter

One additional day

Others:

Up to 100 km

One
day

For every 100 km or part thereof thereafter

One
additional day

Provided that the Commissioner may, on the recommendations of
the Council, by notification, extend the validity period of an e-way bill for
certain categories of goods as may be specified therein:

Provided further that where, under circumstances of an exceptional
nature, including trans-shipment, the goods cannot be transported within the
validity period of the e-way bill, the transporter may extend the validity
period after updating the details in Part
B
of FORM GST EWB-01, if
required.

Explanation 1.—For the purposes of this rule, the “relevant
date” shall mean the date on which the e-way bill has been generated and the
period of validity shall be counted from the time at which the e-way bill has
been generated and each day shall be counted as the period expiring at
midnight of the day immediately following the date of generation of e-way
bill.

Explanation 2.— For the purposes of this rule, the expression
“Over Dimensional Cargo” shall mean a cargo carried as a single indivisible
unit and which exceeds the dimensional limits prescribed in rule 93 of the
Central Motor Vehicle Rules, 1989, made under the Motor Vehicles Act, 1988
(59 of 1988).

(11)

The details of the e-way bill generated under this rule shall
be made available to the

(a) supplier, if registered, where the information in Part A of FORM GST EWB-01 has been furnished by the recipient or the
transporter; or

(b) recipient, if registered, where the information in Part A of FORM GST EWB-01 has been furnished by the supplier or the
transporter,

on the common portal, and the supplier or the recipient, as
the case may be, shall communicate his acceptance or rejection of the
consignment covered by the e-way bill.

(12)

Where the person to whom the information specified in sub-rule
(11) has been made available does not communicate his acceptance or rejection
within seventy two hours of the details being made available to him on the
common portal, or the time of delivery of goods whichever is earlier, it
shall be deemed that he has accepted the said details.

(13)

The e-way bill generated under this rule or under rule 138 of
the Goods and Services Tax Rules of any State or Union territory shall be
valid in every State and Union territory.

(14)

Notwithstanding anything contained in this rule, no e-way bill
is required to be generated—

(a) where the goods being transported are specified in
Annexure (refer
Notification No.12/2018 for annexure);

(b) where the goods are being transported by a non-motorised
conveyance;

I where the goods are being transported from the customs port,
airport, air cargo complex and land customs station to an inland container
depot or a container freight station for clearance by Customs;

(d) in respect of movement of goods within such areas as are
notified under clause (d) of sub-rule (14) of rule 138 of the State or Union
territory Goods and Services Tax Rules in that particular State or Union
territory;

(e) where the goods, other than de-oiled cake, being
transported, are specified in the Schedule appended to notification No.
2/2017- Central tax (Rate) dated the 28th June, 2017 published in
the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),
vide number G.S.R 674 (E) dated the 28th June, 2017 as amended
from time to time;

(f) where the goods being transported are alcoholic liquor for
human consumption, petroleum crude, high speed diesel, motor spirit (commonly
known as petrol), natural gas or aviation turbine fuel;

(g) where the supply of goods being transported is treated as
no supply under Schedule III of the Act;

(h) where the goods are being transported—

(i)    
under
customs bond from an inland container depot or a container freight station to
a customs port, airport, air cargo complex and land customs station, or from
one customs station or customs port to another customs station or customs
port, or

(ii)  
 under customs supervision or under customs
seal;

(i) where the goods being transported are transit cargo from
or to Nepal or Bhutan;

(j) where the goods being transported are exempt from tax
under notification No. 7/2017-Central Tax (Rate), dated 28th June
2017 published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (i), vide number G.S.R 679(E)dated the 28th June, 2017
as amended from time to time and notification No. 26/2017- Central Tax
(Rate), dated the 21st September, 2017 published in the Gazette of
India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R
1181(E) dated the 21st September, 2017 as amended from time to
time;

(k) any movement of goods caused by defence formation under
Ministry of defence as a consignor or consignee;

(l) where the consignor of goods is the Central Government,
Government of any State or a local authority for transport of goods by rail;

(m)where empty cargo containers are being transported; and

(n) where the goods are being transported upto a distance of
twenty kilometers from the place of the business of the consignor to a
weighbridge for weighment or from the weighbridge back to the place of the
business of the said consignor subject to the condition that the movement of
goods is accompanied by a delivery challan issued in accordance with rule 55.

(o) where empty cylinders for packing of liquefied petroleum
gas are being moved for reasons other than supply.
[Notification No.26/2018]

Explanation. – The facility of generation, cancellation,
updation and assignment of e-way bill shall be made available through SMS to
the supplier, recipient and the transporter, as the case may be.

138A

Documents and devices to be carried by a person-in-charge of a
conveyance.

(1)

The person in charge of a conveyance shall carry—

(a) the invoice or bill of supply or delivery challan, as the
case may be; and

(b) a copy of the e-way bill in physical form or the e-way
bill number in electronic form or mapped to a Radio Frequency Identification
Device embedded on to the conveyance in such manner as may be notified by the
Commissioner:

Provided that nothing contained in clause (b) of this sub-rule
shall apply in case of movement of goods by rail or by air or vessel.

Provided further that in case of imported goods, the person in
charge of a conveyance shall also carry a copy of the bill of entry filed by
the importer of such goods and shall indicate the number and date of the bill
of entry in Part A of FORM GST EWB-01.
[Notification No. 39/2018]

(2)

A registered person may obtain an Invoice Reference Number
from the common portal by uploading, on the said portal, a tax invoice issued
by him in FORM GST INV-1 and
produce the same for verification by the proper officer in lieu of the tax
invoice and such number shall be valid for a period of thirty days from the
date of uploading.

(3)

Where the registered person uploads the invoice under sub-rule
(2), the information in Part A of FORM GST EWB-01 shall be
auto-populated by the common portal on the basis of the information furnished
in FORM GST INV-1.

(4)

The Commissioner may, by notification, require a class of
transporters to obtain a unique Radio Frequency Identification Device and get
the said device embedded on to the conveyance and map the e-way bill to the
Radio Frequency Identification Device prior to the movement of goods
.

(5)

Notwithstanding anything contained in clause (b) of sub-rule
(1), where circumstances so warrant, the Commissioner may, by notification,
require the person-in-charge of the conveyance to carry the following
documents instead of the e-way bill

(a) tax invoice or bill of supply or bill of entry; or

(b) a delivery challan, where the goods are transported for
reasons other than by way of supply.

138B

Verification of documents and
conveyances

(1)

The Commissioner or an officer empowered by him in this behalf
may authorize the proper officer to intercept any conveyance to verify the
e-way bill in physical or electronic form for all inter-State and intra-State
movement of goods.

(2)

The Commissioner shall get Radio Frequency Identification
Device readers installed at places where the verification of movement of
goods is required to be carried out and verification of movement of vehicles
shall be done through such device readers where the e-way bill has been
mapped with the said device.

(3)

The physical verification of conveyances shall be carried out
by the proper officer as uthorized by the Commissioner or an officer
empowered by him in this behalf:

Provided that on receipt of specific information on evasion of
tax, physical verification of a specific conveyance can also be carried out
by any other officer after obtaining necessary approval of the Commissioner
or an officer uthorized by him in this behalf.

138C

Inspection and verification of goods

(1)

A summary report of every inspection of goods in transit shall
be recorded online by the proper officer in Part A of FORM GST EWB-03
within twenty four hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such
inspection.

Provided that where the circumstances so warrant, the
Commissioner, or any other officer uthorized by him, may, on sufficient cause
being shown, extend the time for recording of the final report in Part B of FORM EWB-03, for a further period not exceeding three days.

Explanation- The period of twenty four hours or, as the case
may be, three days shall be counted from the midnight of the date on which
the vehicle was intercepted.

(2)

Where the physical verification of goods being transported on
any conveyance has been done during transit at one place within the State or
Union territory or in any other State or Union territory, no further physical
verification of the said conveyance shall be carried out again in the State
or Union territory, unless a specific information relating to evasion of tax
is made available subsequently.

138D

Facility for uploading information
regarding detention of vehicle.-

 

Where a vehicle has been intercepted and detained for a period
exceeding thirty minutes, the transporter may upload the said information in FORM GST EWB-04 on the common portal.

Explanation – For the
purposes of this Chapter, the expressions ‘transported by railways’,
‘transportation of goods by railways’, ‘transport of goods by rail’ and
‘movement of goods by rail’ does not include cases where leasing of parcel
space by Railways takes place.

Inspection, search and seizure

139.

Inspection, search and seizure

(1)

Where the proper officer not below the rank of a Joint Commissioner has reasons to
believe that a place of business or any other place is to be visited for the
purposes of inspection or search or, as the case may be, seizure in
accordance with the provisions of section 67, he shall issue an uthorizedon
in FORM GST INS-01 authorising any
other officer subordinate to him to conduct the inspection or search or, as
the case may be, seizure of goods, documents, books or things liable to confiscation.

(2)

Where any goods, documents, books or things are liable for
seizure under sub-section (2) of section 67, the proper officer or an uthorized
officer shall make an order of seizure in FORM GST INS-02.

(3)

The proper officer
or an uthorized officer may entrust upon the the owner or the custodian of goods, from whose custody
such goods or things are seized, the custody of such goods or things for safe
upkeep and the said person shall not remove, part with, or otherwise deal
with the goods or things except with the previous permission of such officer.

(4)

Where it is not practicable to seize any such goods, the
proper officer or the uthorized officer may serve
on the owner
or the custodian of the goods,
an order of prohibition in FORM GST
INS-03
that he shall
not remove, part with, or otherwise deal
with the goods except
with the previous permission of such
officer.

(5)

The officer seizing the goods, documents, books or things
shall prepare an inventory of such goods or documents or books or things
containing, inter alia,
description, quantity or unit, make, mark
or model, where
applicable, and get it signed
by the person
from whom such goods or
documents or books or things are seized.

140.

Bond and
security for release of seized goods

(1)

The seized goods may be released on a provisional basis upon execution of a bond
for the value
of the goods
in FORM GST INS-04 and furnishing of a security in the form of a
bank guarantee equivalent to the amount of applicable tax, interest and
penalty payable.

Explanation.- For the purposes of the rules under the provisions of this
Chapter, the “applicable tax” shall include central tax and State tax or
central tax and the Union territory tax, as the case may be and the cess, if
any, payable under the Goods and Services Tax (Compensation to States) Act,
2017 (15 of 2017).

(2)

In case the person to whom the goods were released
provisionally fails to produce the
goods at the appointed date and place indicated by the proper officer, the
security shall be encashed and adjusted against the tax,
interest and penalty
and fine, if any, payable
in respect of such goods.

141.

Procedure
in respect of seized goods

(1)

Where the goods or things seized are of perishable or
hazardous nature, and if the taxable person pays an amount equivalent to the
market price of such goods or things or the amount of tax, interest and
penalty that is or may become payable by the taxable
person, whichever is lower, such
goods or, as the case
may be, things shall be
released forthwith, by an order in FORM
GST INS-05
, on proof of payment.

(2)

Where the taxable person fails to pay the amount referred to
in sub-rule (1) in respect of the said goods or things, the Commissioner may
dispose of such goods or things and the amount realized thereby shall be
adjusted against the tax, interest, penalty, or any other amount payable in
respect of such goods or things.

Demands and recovery

142.

Notice and
order for demand of amounts payable under the Act

(1)

 

The proper officer shall serve, along with the

(k)   notice u/s 73(1), 74(1)
or 76(2), a summary thereof electronically in FORM GST DRC-01,

 (b) statement u/s 73(3)
or 74(3), 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
section 73(5) or, as the case may be, tax, interest and penalty in accordance
with the provisions of section 74(5), 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 u/s 73(8)
or, as the case may be, tax, interest and penalty u/s 74(8) 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 section 73(9), 74(9) or 76(3) shall be in FORM GST DRC-06.

(5)

A
summary of the order issued u/s 73(9), 74(9), 76(3), 125, 129 or 130 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.

142A

Procedure
for recovery of dues under existing laws

(1)

A summary of order issued under any of the existing laws
creating demand of tax, interest, penalty, fee or any other dues which
becomes recoverable consequent to proceedings launched under the existing law
before, on or after the appointed day shall, unless recovered under that law,
be recovered under the Act and may be uploaded in FORM GST DRC-07A electronically on the common portal for recovery
under the Act and the demand of the order shall be posted in Part II of
Electronic Liability Register in FORM
GST PMT-01
.

(2)

Where the demand of an order uploaded under sub-rule (1) is
rectified or modified or quashed in any proceedings, including in appeal,
review or revision, or the recovery is made under the existing laws, a
summary thereof shall be uploaded on the common portal in FORM GST DRC-08A and Part II of
Electronic Liability Register in FORM
GST PMT-01
shall be updated accordingly.
[Notification No. 60/2018]

143.

Recovery
by deduction from any money owed

 

Where any amount payable by a person (hereafter referred to in
this rule as “the defaulter”) to the Government under any of the provisions
of the Act or the rules made thereunder is not paid, the proper officer may
require, in FORM GST DRC-09, a
specified officer to deduct the amount from any money owing to such defaulter
in accordance with the provisions section 79(1)(a).

Explanation:
For the purposes of this rule, “specified officer” shall mean any officer of
the Central Government or a State Government or the Government of a Union
territory or a local authority, or of a Board or Corporation or a company
owned or controlled, wholly or partly, by the Central Government or a State
Government or the Government of a Union territory or a local authority.

144.

Recovery
by sale of goods under the control of proper officer

(1)

Where any amount due from a defaulter is to be recovered by
selling goods belonging to such person in accordance with the provisions of section 79(1)(b), the proper officer 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 incurred on the recovery process.

(2)

The said goods shall be sold through a process of auction,
including e-auction, for which a notice shall be issued in FORM GST DRC-10 clearly indicating
the goods to be sold and the purpose of sale.

(3)

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 (2):

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. On payment of the full bid amount, the proper officer shall transfer
the possession of the said goods to the successful bidder and issue a
certificate in FORM GST DRC-12.

(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.

145.

Recovery from a third person

(1)

The proper officer may serve upon a person referred to in
section 79(1)(c) (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.

146.

Recovery through execution of a decree, etc

 

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.

147.

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-

(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.

(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:

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.

148.

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.

149.

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.

150.

Assistance by police

 

The proper officer may seek such assistance from 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.

151.

Attachment
of debts and shares, etc.

(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.

152.

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.

153.

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.

(2)

The
other partners shall be at liberty at any time to redeem the interest charged
or, in the case of a sale being directed, to purchase the same.

154.

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;

(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; and

(d)     
any
balance, be paid to the defaulter.

155.

Recovery through land revenue authority

 

Where an amount is to be recovered in accordance with
the provisions of section 79(1)(e), 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.

156.

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 section 79(1)(f) in FORM
GST DRC- 19
to recover from the person concerned, the amount specified
thereunder as if it were a fine imposed by him.

157.

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.

158.

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.

159.

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.

160.

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
.

161.

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
.

Offences and
penalties

162.

Procedure for compounding of offences

(1)

An applicant may, either before
or after the institution of
prosecution, make an application u/s 138(1) in FORM GST CPD-01 to the Commissioner for compounding of an offence

(2)

On receipt of the application, the Commissioner shall call for
a report from the concerned officer with reference to the particulars
furnished in the application, or any other information, which may be
considered relevant for the examination of such application

(3)

The Commissioner, after
taking into account
the contents of the said application, may, by order in FORM GST CPD-02, on being satisfied that the applicant has
co-operated in the proceedings
before him and has made full and true disclosure of facts relating to the
case, allow the application indicating the compounding amount and grant him
immunity from prosecution or reject such application within ninety days of
the receipt of the application

(4)

The application shall not be decided under sub-rule (3)
without affording an opportunity of being heard to the applicant and
recording the grounds of such rejection

(5)

The application shall not be allowed unless the tax, interest
and penalty liable to be paid have been paid in the case for which the
application has been made

(6)

The applicant shall, within a period of thirty days from the
date of the receipt of the order under sub-rule (3), pay the compounding
amount as ordered by the Commissioner and shall furnish the proof of such
payment to him

(7)

In case the applicant fails to pay the compounding amount
within the time specified in sub-rule (6), the order made under sub-rule (3)
shall be vitiated and be void

(8)

Immunity granted to a person under sub-rule (3) may, at any
time, be withdrawn by the Commissioner, if he is satisfied that such person
had, in the course of the compounding proceedings, concealed any material particulars or had given
false evidence. Thereupon such person may be tried for the offence
with respect to which immunity was granted or for any other offence that
appears to have been committed by him in connection with the compounding proceedings
and the provisions the Act shall apply as if no such immunity had been granted

Reference:

Notification No. 34/2017

Notification
No.12/2018

Notification No. 14/2018

Notification No. 29/2018