Section 83 of CGST Act - Provisional Attachment to Protect Government Revenue
Section 83 of the Central Goods and Services Tax Act, 2017 empowers the Commissioner, subject to statutory conditions, to provisionally attach property, including a bank account, where such action is considered necessary to protect Government revenue. The provision is preventive and temporary; it is not a final recovery mechanism.
Updated: 15 September 2026
Current text and meaning of Section 83
Section 83(1) - Provisional attachment: Where, after initiation of a proceeding under Chapter XII (Assessment), Chapter XIV (Inspection, Search, Seizure and Arrest) or Chapter XV (Demands and Recovery), the Commissioner forms the opinion that provisional attachment is necessary to protect the interest of Government revenue, the Commissioner may, by a written order and in the prescribed manner, provisionally attach property, including a bank account, belonging to the taxable person or a person covered by Section 122(1A).
Section 83(2) - Time limit: A provisional attachment ceases to have effect after one year from the date of the order made under Section 83(1).
The official statutory materials should always be checked for the text applicable to the relevant tax period. See the CBIC GST Acts page.
What does "provisional attachment" mean?
Provisional attachment is a temporary protective measure intended to preserve assets so that a potential GST demand is not defeated before proceedings reach their conclusion. Property may include a bank account and, depending on the facts and the order passed, other movable or immovable property. Because attachment can seriously affect business operations and property rights, the statutory preconditions and prescribed procedure are important.
Conditions for invoking Section 83
| Requirement | Practical meaning |
|---|---|
| Relevant proceeding initiated | There must be initiation of a proceeding under Chapter XII, XIV or XV of the CGST Act. |
| Commissioner's opinion | The Commissioner must form an opinion that attachment is necessary for protecting Government revenue. The power is not intended to be automatic merely because proceedings exist. |
| Written order | The attachment must be made by an order in writing and in the manner prescribed by the CGST Rules. |
| Eligible property/person | The provision covers property, including bank accounts, belonging to the taxable person or a person specified in Section 122(1A). |
| Temporary duration | Under Section 83(2), the attachment ceases after one year from the date of the Section 83(1) order. |
Section 122(1A): person whose property may also be attached
Section 122(1A) broadly addresses a person who retains the benefit of specified transactions covered by Section 122(1) clauses (i), (ii), (vii) or (ix), and at whose instance such transaction is conducted. The reference in Section 83 means that provisional attachment is no longer confined only to property belonging to the taxable person where the statutory conditions concerning Section 122(1A) are satisfied.
Rule 159 procedure: FORM GST DRC-22, objection and release
Section 83 operates with Rule 159 of the CGST Rules. The prescribed process includes an attachment order in FORM GST DRC-22. A person whose property is attached may file an objection that the property attached was or is not liable to attachment. The prescribed authority must provide an opportunity of being heard. Where the property is no longer liable to attachment, release is ordered in FORM GST DRC-23. Taxpayers should verify the current rule and forms on the CBIC GST portal.
Supreme Court guidance: Radha Krishan Industries
In Radha Krishan Industries v. State of Himachal Pradesh (judgment dated 20 April 2021), the Supreme Court treated provisional attachment as a stringent power and emphasized that the statutory requirements governing its exercise must be observed. The case concerned the earlier version of Section 83, so its factual and statutory setting should be distinguished from the substituted provision now in force. The judgment remains important for principles concerning formation of opinion, material supporting the exercise of power, proportionality and procedural safeguards. Read the Supreme Court judgment.
How long can a Section 83 attachment continue?
Section 83(2) expressly provides that every provisional attachment ceases to have effect after one year from the date of the order under Section 83(1). This statutory outer limit is central to the temporary nature of the power. An attachment should also be examined in light of any earlier lawful release, court order or other development affecting its validity.
What to check when a bank account or property is attached
Review the attachment order, the proceeding said to have been initiated, the authority issuing the order, the property covered, the reasons or material relied upon where available, the date of attachment and the Rule 159 remedy. A prompt objection should clearly identify why the particular property is not liable to attachment and should include supporting records. Where attachment is challenged judicially, the precise facts, statutory stage and current wording of Section 83 are material.
Related CGST Act provisions
For connected provisions, see Section 73 - determination of tax in specified non-fraud cases, Section 74 - fraud, wilful misstatement or suppression cases, Section 79 - recovery of tax, Section 82 - tax to be first charge on property, and Section 84 - continuation and validation of certain recovery proceedings.
Frequently asked questions
Can a bank account be provisionally attached under Section 83?
Yes. Section 83 expressly includes a bank account within property that may be provisionally attached, provided the statutory conditions are met.
Is provisional attachment the same as final recovery?
No. Section 83 is a temporary protective power. Final recovery is governed by the applicable demand and recovery provisions of the CGST Act and Rules.
Does a Section 83 attachment last indefinitely?
No. Section 83(2) provides that it ceases to have effect after one year from the date of the attachment order.
Can an affected person object?
Yes. Rule 159 provides a mechanism for objection to provisional attachment and for release where the property is found not liable to attachment.