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FORM DRC-22- Provisional attachment of Property order

FORM DRC-22

FORM DRC-22- Automatic restoration of provisional attached property

The Goods and Services Tax Council’s Fifty Two meeting was held under chairpersonship of the Nirmala Sitharaman (Union Finance & Corporate Affairs Minister) in Delhi on October 07, 2023.

Goods and Services Tax Council recommended amendment in Rule 159(2) of the CGST Rules, 2017 and Goods and Services Tax FORM DRC-22 by stipulating that any order for provisional attachment in Goods and Services Tax FORM DRC-22 will no longer remain valid after the passage of 1 year from the date of the started or initial order.

GST Council amendment recommended in Rule 159(2) simplifies the process and facilitates automatic release of provisionally attached properties after completion of 1 year, eliminating the need for a specific written order or separate written order from the Goods & Services Tax Commissioner to affect the release.

The GST Council has suggested after a long 6 year delay. The provisionally attached property should be automatically restored after a year without the requirement for a particular and separate order from the GST Authorities,

The lifting of provisional attachments, which the GST Authorities initially imposed as a temporary measure for a limited duration of one year, has consumed a lot of taxpayer time and resources over the past six years.

Since the implementation of GST, a clause in Section 83(2) of the CGST Act, 2017 states that a provisional attachment will no longer be valid when one year has passed since the date of the order. But still there was no automatic restoration of provisional attached property.

Specific & A formal order of release is needed from the Goods and Services Tax Authorities to get property or bank account released by the taxpayer.

The above amendment recommended may streamlines procedure for release of provisionally attached assets, offering more clarity & efficiency in compliance with Goods and Services Tax Rules & regulations as the CGST Rules, 2017.

GST Press Release are attached here:  https://www.pib.gov.in/PressReleasePage.aspx?PRID=1965431

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