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 154, verbatim (show)
1[Rule 154. Disposal of proceeds of sale of goods or conveyance and movable or immovable property. -
(1) The amounts so realised from the sale of goods or conveyance, movable or immovable property, for the recovery of dues from a defaulter or for recovery of penalty payable under sub-section (3) of section 129 shall,-
(a) first, be appropriated against the administrative cost of the recovery process;
(b) next, be appropriated against the amount to be recovered or to the payment of the penalty payable under sub-section (3) of section 129, as the case may be;
(c) next, be appropriated against any other amount due from the defaulter under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017 and the rules made thereunder; and (d) the balance, if any, shall be credited to the electronic cash ledger of the owner of the goods or conveyance as the case may be, in case the person is registered under the Act, and where the said person is not required to be registered under the Act, the said amount shall be credited to the bank account of the person concerned;
(2) where it is not possible to pay the balance of sale proceeds, as per clause (d) of sub-rule (1), to the person concerned within a period of six months from the date of sale of such goods or conveyance or such further period as the proper officer may allow, such balance of sale proceeds shall be deposited with the Fund;]
1. Inserted (w.e.f. 01.01.2022) vide Notification No. 40/2021 - CT dated 29.12.2021 for "Rule 154. Disposal of proceeds of sale of goods and movable or immovable property . - The amounts so realised from the sale of goods, movable or immovable property, for the recovery of dues from a defaulter shall,- (a) first, be appropriated against the administrative cost of the recovery process; (b) next, be appropriated against the amount to be recovered; (c) next, be appropriated against any other amount due from the defaulter under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017 and the rules made thereunder; and (d) any balance, be paid to the defaulter."
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.
Sale-proceeds subject 154(1)
Questions to answer on the file2 questions
First appropriation to administrative cost 154(1)(a)
Questions to answer on the file2 questions
Next appropriation to primary dues or penalty 154(1)(b)
Questions to answer on the file3 questions
Next appropriation to other statutory dues 154(1)(c)
Questions to answer on the file4 questions
Residual after the statutory priorities 154(1)(d)
Questions to answer on the file4 questions
Goods or conveyance positive residual destination 154(1)(d)
Questions to answer on the file5 questions
Unpayable goods or conveyance residual transferred to Fund 154(2)
Questions to answer on the file6 questions
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]
| Note | Change |
|---|---|
| 1 | Inserted (w.e.f. 01.01.2022) vide Notification No. 40/2021 - CT dated 29.12.2021 for "Rule 154. Disposal of proceeds of sale of goods and movable or immovable property. - The amounts so realised from the sale of goods, movable or immovable property, for the recovery of dues from a defaulter shall,- (a) first, be appropriated against the administrative cost of the recovery process; (b) next, be appropriated against the amount to be recovered; (c) next, be appropriated against any other amount due from the defaulter under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017 and the rules made thereunder; and (d) any balance, be paid to the defaulter."[2] |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 129 of the CGST Act, 2017 | this provision requires Section 129 of the CGST Act, 2017 | 154(1) "penalty payable under sub-section (3) of section 129" |
| Section 2 of the CGST Act, 2017 | this provision defined by Section 2 of the CGST Act, 2017 | 154(2) "the Fund"; statutory defined term |
| Section 57 of the CGST Act, 2017 | this provision requires Section 57 of the CGST Act, 2017 | 154(2) "deposited with the Fund" |
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 (1)
| Number | Date | Subject |
|---|---|---|
| Notification No. 40/2021-Central Tax | 29 December 2021 | Seeks to make amendments (Tenth Amendment, 2021) to the CGST Rules, 2017. |
See also
- Section 129 of the CGST Act, 2017: detention, seizure and release of goods and conveyances in transit
- Section 57 of the CGST Act, 2017: consumer Welfare Fund
References
- Central Board of Indirect Taxes and Customs. "Rule 154. Disposal of proceeds of sale of goods or conveyance and movable or immovable property". Central Goods and Services Tax Rules, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.
- Notification No. 40/2021-Central Tax, dated 29 December 2021: Seeks to make amendments (Tenth Amendment, 2021) to the CGST Rules, 2017. Cited in CBIC footnote 1.
External links
- CGST Rules, 2017, Rule 154 on the CBIC tax information portal