{"id":10773,"date":"2020-06-15T16:40:56","date_gmt":"2020-06-15T11:10:56","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=10773"},"modified":"2020-06-15T16:46:21","modified_gmt":"2020-06-15T11:16:21","slug":"provisional-attachment-of-property-under-gst","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/provisional-attachment-of-property-under-gst\/","title":{"rendered":"Insights on the Provisional Attachment of Property under GST"},"content":{"rendered":"\n

Provisional attachment of property under GST is mainly concerned with the\nprotection\nof the interests<\/em><\/strong> of the revenue<\/em><\/strong>. All the legal proceedings\nunder several tax laws (Also comprising goods and service tax) might require a\nsubstantial amount of time. Delay could take place in the earning of revenue by\nthe government due to the state of pending or awaiting settlement of all the\nproceedings.<\/p>\n\n\n\n

Before the proceedings come to an end, the taxpayer can take a step ahead and transfer his property<\/em><\/strong> to another person. The government can utilize its power of provisional attachment of property under GST<\/strong><\/a> (Properties of the taxpayer) <\/em><\/strong>for protecting the interests of the revenue in the period of pending or awaiting settlement of any of the proceedings. <\/p>\n\n\n\n

Meaning of\nProvisional Attachment of Property under GST- As per Section 83 of the GST Act,\n2017 <\/h2>\n\n\n\n

Knowing the meaning of provisional attachment of property under GST is essential before moving ahead on Section 83 of CGST Act.\u00a0 The person cannot make the transfer of his property to any other person in case if the government attaches the property of that person. However, if somehow he does manage to make the transfer of his attached property, then such a kind of transfer won’t get recognized by law, and also, the transfer would get assumed as void. Although the bank account would get attached, transfer of funds to other accounts won’t get allowed.<\/p>\n\n\n\n

Systematic\nExposition of Section 83 of the CGST Act<\/h3>\n\n\n\n

An order concerning attachment of property including taxpayers\u2019 bank accounts for protection of the interests of the revenue would get passed from the Commissioner end at the time of pendency of some specified proceedings under CGST Act, 2017<\/strong><\/em>[1]<\/strong><\/a><\/sup>. <\/em><\/strong><\/p>\n\n\n\n

In case if no action is taken, such order would likely remain in effect\ntill one year time. The concerned Transport Authority, Revenue\nAuthority<\/em><\/strong>, or any related authority would put an impediment on the said property<\/em><\/strong>\nafter receiving a copy of the order passed by Commissioner<\/em><\/strong>. Without\ngetting instructions from the Commissioner, there is no provision for removal\nof the impediment.<\/p>\n\n\n\n

State of\nAffairs in Which Section 83 can be put into effect<\/h3>\n\n\n\n

At the time of the pendency of the proceedings given below, Section 83 could get invoked-\u00a0<\/em><\/p>\n\n\n\n

\"time<\/figure><\/div>\n\n\n\n