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Rule 141 of the CGST Rules, 2017

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GST›CGST Rules, 2017›Chapter XVII, Inspection, Search and Seizure

At a glance

Entitlement and conditions

141(1)Release requires payment of the lower of market price or the tax, interest and penalty that is or may become due. On proof, the goods or things must be released forthwith through FORM GST INS-05.

Procedure, powers and definitions

141(2)If the taxable person fails to pay, the proper officer may dispose of the goods or things and adjust the proceeds against tax, interest, penalty or other amounts relating to them.
141(1)The law does not settle the interval after proof of payment that satisfies forthwith release.

Rule 141 provides a payment-based release route for seized goods or things that are perishable or hazardous. The relevant payment is the lower of market price and the specified tax, interest and penalty amount. Proof of payment requires prompt release through the prescribed order. If the taxable person fails to pay, the proper officer may dispose of the items and adjust the proceeds.^[1]

Quick facts

Rule 141, CGST Rules, 2017

Procedure in respect of seized goods

Provision
Act	Central Goods and Services Tax Rules, 2017
Chapter	XVII, Inspection, Search and Seizure
Rule title	Procedure in respect of seized goods
Amendments
Amendments	1 footnote in the CBIC text (table)
Related provisions
Other rules	Rule 140
Forms named	FORM GST INS-05
Structure 141(1)Perishable or hazardous seized goods 141(1)Lower release amount 141(1)Payment proof and release order 141(1)Forthwith release timing 141(2)Disposal after failure to pay
Source
Law text	CBIC tax information portal, served on 17 September 2026^[1]

Text

The text below is the rule as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.^[1] The Rules as published in the Gazette of India is the legal source.

Rule 141, verbatim (show)

Rule 141. 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 ¹[proper officer] 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.

1.Substituted vide Notification No. 16/2020-CT dated 23.03.2020 for the word "Commissioner".

Questions to answer on the file

Questions a reviewer answers from the engagement file, grouped by the part of the rule they come from. They describe what the rule asks; they do not decide it.

Perishable or hazardous seized goods 141(1)

Questions to answer on the file3 questions

Were the goods or things seized?
Are the seized goods or things perishable?
Are the seized goods or things hazardous?

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Lower release amount 141(1)

Questions to answer on the file4 questions

What is the market price of the goods or things?
What tax is or may become payable by the taxable person for these goods?
What interest is or may become payable for these goods?
What penalty is or may become payable for these goods?

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Payment proof and release order 141(1)

Questions to answer on the file8 questions

What amount was paid by the taxable person for this release?
What is the market price of the goods or things?
What tax is or may become payable by the taxable person for these goods?
What interest is or may become payable for these goods?
What penalty is or may become payable for these goods?
Was proof of this payment produced?
Was the release ordered in FORM GST INS-05?
Were the goods or things released?

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Forthwith release timing 141(1)

Questions to answer on the file2 questions

Were the goods or things released?
Does the reserved statutory test hold on the evidence?

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Disposal after failure to pay 141(2)

Questions to answer on the file8 questions

What amount was paid by the taxable person for this release?
What is the market price of the goods or things?
What tax is or may become payable by the taxable person for these goods?
What interest is or may become payable for these goods?
What penalty is or may become payable for these goods?
Is the disposing officer the proper officer for this disposal?
Were those goods or things disposed of?
Were the proceeds adjusted against amounts payable in respect of those goods or things?

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Amendment history

The CBIC text carries 1 footnote. The table gives each in the source's own terms. Effective dates are as the footnotes state them.^[1]

Amendments to Rule 141 as footnoted in the CBIC text
Note	Change
1	Substituted vide Notification No. 16/2020-CT dated 23.03.2020 for the word "Commissioner".^[2]

Circulars and notifications

Circulars and notifications in the CBIC repository that cite this rule, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.

Notifications (2)

Number	Date	Subject
Notification No. 16/2020-Central Tax	23 March 2020	Seeks to make third amendment (2020) to CGST Rules.
Notification No. 15/2017-Central Tax	1 July 2017	Amending CGST Rules notification 10/2017-CT dt 28.06.2017

Unsettled questions

The words of Rule 141 do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.

What interval after proof of the applicable payment satisfies forthwith release under Rule 141(1) or159(3)?

See also

Rule 140 of the CGST Rules, 2017: bond and security for release of seized goods

References

Central Board of Indirect Taxes and Customs. "Rule 141. Procedure in respect of seized goods". Central Goods and Services Tax Rules, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.
Notification No. 16/2020-Central Tax, dated 23 March 2020: Seeks to make third amendment (2020) to CGST Rules. Cited in CBIC footnote 1.

External links

CGST Rules, 2017, Rule 141 on the CBIC tax information portal