Rule 144 of CGST Rules – Recovery by sale of goods under the control of proper officer

Rule 144 of CGST Rules – Recovery by sale of goods under the control of proper officer

(updated as on 15.11.2017)

(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 clause (b) of sub-section (1) of section 79, 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.



Chapter XVIII of CGST Rules,2017 consists of twenty rules relating to Demand & Recovery Rules under the GST regime. All this rules are available for your ready reference.
Rule 142 : Notice and order for demand of amounts payable under the Act
Rule 143 : Recovery by deduction from any money owed
Rule 144 : Recovery by sale of goods under the control of proper officer
Rule 145 : Recovery from a third person
Rule 146 : Recovery through execution of a decree, etc.
Rule 147 : Recovery by sale of movable or immovable property
Rule 148 : Prohibition against bidding or purchase by officer
Rule 149 : Prohibition against sale on holidays
Rule 150 : Assistance by police
Rule 151 : Attachment of debts and shares, etc.
Rule 152 : Attachment of property in custody of courts or Public Officer
Rule 153 : Attachment of interest in partnership
Rule 154 : Disposal of proceeds of sale of goods and movable or immovable property
Rule 155 : Recovery through land revenue authority
Rule 156 : Recovery through court
Rule 157 : Recovery from surety
Rule 158 : Payment of tax and other amounts in installments
Rule 159 : Provisional attachment of property
Rule 160 : Recovery from company in liquidation
Rule 161 : Continuation of certain recovery proceedings

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Click here to download the CGST Rules as updated on 15th November, 2017


Ankita Khetan


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