Last updated: January 27th, 2020 1:48 PM

Rule 155 of GST - Recovery through Revenue Authorities

Rule 155 of the CGST Act deals with the recovery of GST dues by way of issuing a certificate to the concerned land revenue authorities to hold or seize property. This rule is applicable in case of recovery of GST dues from a person on account of default in payment. Application of Rule 155 of the GST Act is one of the final recovery measures of the Government. Prior to initiating action as per Rule 155, the GST Department would provide sufficient notice and opportunity for all taxpayers to pay the overdue GST amount.

Rule 155 of GST

Rules 155 of CGST Act states as under: "Where an amount is to be recovered in accordance with the provisions of clause (e) of sub-section (1) of section 79, 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." Hence, a GST officer is empowered to initiate the recovery of GST payment due through a Collector or Deputy Commissioner of the district or any other officer in the land revenue department. To authorise a land revenue officer to collect dues, the GST department must issue a certificate to the concerned officer in the following format:

Recovery of GST Dues

In addition to the above, the GST Department would also initiate the following recovery proceedings to collect any overdue GST amount:

• Issue of notice in writing requiring the person who is indebted to make any payments.
• Hold GST refund of a taxpayer until remitting any overdue payment.
• Classify a person who not paid GST dues in response to a GST notice as a defaulter to the amount mentioned in the notice.
• Fils an application to the appropriate Magistrate and the Magistrate to takes steps to recover the amount from that person.
• Detains any property belonging to the person until the person pays the amount. 30 days is the limit to pay the amount, if not the property will be sold.