Seized Goods under GST

What is Seized Goods under GST


This post explains about Seized goods under GST.  


  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 authorisation 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 authorised officer shall make an order of seizure in FORM GST INS-02.
  3. The proper officer or an authorised officer may entrust upon 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 authorised 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.

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).

  1. 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.

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.

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