What does Section 83 of the CGST Act, 2017 provide?

Section 83 empowers the Commissioner, after initiation of proceedings under Chapter XII, XIV or XV, to provisionally attach any property, including bank accounts, belonging to the taxable person or persons specified in section 122(1A), to protect the interest of Government revenue.

For how long does a provisional attachment under Section 83 remain in effect?

A provisional attachment under Section 83 ceases to have effect after one year from the date of the order made under sub-section (1).

From when is Section 83 of the CGST Act enforced?

Section 83 is enforced with effect from July 1, 2017, as per Notification No. G.S.R. 658(E) dated 28.06.2017.

How was sub-section (1) of Section 83 amended by the Finance Act, 2021?

Sub-section (1) of Section 83 was substituted by the Finance Act, 2021 with effect from 01.01.2022, widening its scope to proceedings under Chapter XII, XIV or XV and to property of persons specified in section 122(1A), as notified by Notification No. 39/2021–Central Tax dated 21.12.2021.

Section 83 of CGST Act, 2017 – Provisional attachment to protect revenue in certain cases

The Central Goods and Services Tax Act, 2017

Chapter-XV Demands and Recovery

Section 83: Provisional attachment to protect revenue in certain cases.

83. ¹[(1) Where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue it is necessary so to do, he may, by order in writing, attach provisionally, any property, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122, in such manner as may be prescribed.]

(2) Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (1).

References

Enforcement:

Enforced w.e.f. July 01, 2017 [Notification No. G.S.R. 658(E) dated 28.06.2017].

Amendments:

1. Substituted by Finance Act, 2021, w.e.f. 01.01.2022 [vide Notification No. 39/2021–Central Tax dated 21.12.2021], for the sub-section:

“(1) Where during the pendency of any proceedings under section 62 or section 63 or section 64 or section 67 or section 73 or section 74, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the taxable person in such manner as may be prescribed.”

Circulars:

c1. No separate notice is required to be issued for best judgment assessment under section 62 and in case of failure to file return within 15 days of issuance of FORM GSTR-3A, the best judgment assessment in FORM ASMT-13 can be issued without any further communication. The Commissioner may resort to provisional attachment to protect revenue under section 83 of the CGST Act before issuance of FORM GST ASMT-13. the proper officer would initiate action under sub-section (2) of section 29 of the CGST Act for cancellation of registration in cases where the return has not been furnished for the period specified in section 29. For guidelines, refer Circular No. 129/48/2019-GST dated 24.12.2019.