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 144, verbatim (show)
Rule 144. Recovery by sale of goods under the control of proper officer . -
(1) Where any amount due from a defaulter is to be recovered by selling goods belonging to such person in accordance with the provisions of clause (b) of sub-section (1) of section 79, the proper officer shall prepare an inventory and estimate the market value of such goods and proceed to sell only so much of the goods as may be required for recovering the amount payable along with the administrative expenditure incurred on the recovery process.
(2) The said goods shall be sold through a process of auction, including e-auction, for which a Notice shall be issued in FORM GST DRC-10 clearly indicating the goods to be sold and the purpose of sale.
(3) The last day for submission of bid or the date of auction shall not be earlier than fifteen days from the date of issue of the Notice referred to in sub-rule (2):
Provided that where the goods are of perishable or hazardous nature or where the expenses of keeping them in custody are likely to exceed their value, the proper officer may sell them forthwith.
(4) The proper officer may specify the amount of pre-bid deposit to be furnished in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be.
(5) The proper officer shall issue a Notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of auction. On payment of the full bid amount, the proper officer shall transfer the possession of the said goods to the successful bidder and issue a certificate in FORM GST DRC-12.
(6) Where the defaulter pays the amount under recovery, including any expenses incurred on the process of recovery, before the issue of the Notice under sub-rule (2), the proper officer shall cancel the process of auction and release the goods.
(7) The proper officer shall cancel the process and proceed for re-auction where no bid is received or the auction is considered to be non-competitive due to lack of adequate participation or due to low bids.
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.
Goods recovery inventory and valuation 144(1)
Questions to answer on the file4 questions
Extent of goods sale 144(1)
Questions to answer on the file4 questions
Auction and sale notice 144(2)
Questions to answer on the file4 questions
Earliest bid or auction day 144(3)
Questions to answer on the file6 questions
Specified pre-bid deposit eligibility 144(4)
Questions to answer on the file4 questions
Unsuccessful bidder deposit return 144(4)
Questions to answer on the file2 questions
Successful bidder deposit forfeiture 144(4)
Questions to answer on the file3 questions
Bidder payment notice period 144(5)
Questions to answer on the file3 questions
Paid bidder possession and certificate 144(5)
Questions to answer on the file3 questions
Pre-notice payment cancellation 144(6)
Questions to answer on the file4 questions
Cancellation and re-auction 144(7)
Questions to answer on the file7 questions
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 79 of the CGST Act, 2017 | this provision requires Section 79 of the CGST Act, 2017 | 144(1) "clause (b) of sub-section (1) of section 79" |
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.
Circulars (1)
| Number | Date | Subject |
|---|---|---|
| Circular No. 3/03/2017-GST | 5 July 2017 | Proper officer relating to provisions other than Registration and Composition under the Central Goods and Services Tax Act, 2017-Reg. |
Notifications (3)
| Number | Date | Subject |
|---|---|---|
| Notification No. 38/2023-Central Tax | 4 August 2023 | Seeks to make amendments (Second Amendment , 2023) to the CGST Rules, 2017. |
| Notification No. 40/2021-Central Tax | 29 December 2021 | Seeks to make amendments (Tenth Amendment, 2021) to the CGST Rules, 2017. |
| 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 144 do not answer these questions. Where one decides a matter on the file, the answer depends on the position taken on it.
- How should the officer identify only so much of an indivisible or variable-value lot as is required to recover the amount payable and incurred administrative expenditure under Rule 144(1)?
- When does participation or the level of bids make the auction non-competitive under Rules 144(7), 144A(7) and 147(15)?
See also
- Section 79 of the CGST Act, 2017: recovery of tax
- Rule 144A of the CGST Rules, 2017: recovery of penalty by sale of goods or conveyance detained or seized in transit
References
- Central Board of Indirect Taxes and Customs. "Rule 144. Recovery by sale of goods under the control of proper officer". Central Goods and Services Tax Rules, 2017, CBIC tax information portal. Retrieved 17 September 2026.
External links
- CGST Rules, 2017, Rule 144 on the CBIC tax information portal