DRC-10 – Notice for Auction of Goods under Recovery

DRC-10 is issued when the department decides to recover unpaid GST dues by auctioning goods that have already been attached under Section 79. It informs the taxpayer and the public about the proposed auction, the goods involved, and the date, time, and conditions of sale. This form begins the auction process for recovery of tax arrears.

When DRC-10 Is Issued

DRC-10 is used only after prior attachment of goods and when the taxpayer still fails to pay the outstanding demand.

• Issued when goods have been attached under recovery proceedings.
• Used when the taxpayer does not clear dues even after attachment.
• Generated to notify auction for recovery of tax, interest, or penalty.
• Applied when movable goods (stock, vehicles, machinery, etc.) need to be sold.

Legal Provision

DRC-10 is part of the statutory mechanism enabling the GST department to sell attached property to realise unpaid dues.

• Governed by Rule 144(2) of the CGST Rules.
• Follows recovery authority under Section 79(1)(b) of the CGST Act.
• Must be issued by the Proper Officer authorised to conduct recovery and auction.
• Auction proceeds are adjusted against the taxpayer’s liability.

Details Contained in DRC-10

The form provides full transparency about the items to be auctioned and the auction process.

• Shows GSTIN, name of taxpayer, and reference to the order of attachment.
• Lists the goods to be sold, describing quantity, quality, and location.
• Specifies the date, time, and venue of the auction.
• States the reserve price or minimum bid, if fixed.
• Indicates terms of sale, deposit conditions, and payment timeline for the highest bidder.

Why DRC-10 Matters

This form is crucial because it alerts both the taxpayer and the public that the department is proceeding with auction to recover dues.

• Gives taxpayer one last chance to pay before auction takes place.
• Ensures transparency and fairness in the auction process.
• Allows third parties to participate legally in auction of seized goods.
• Helps department realise dues when other recovery measures fail.

Action Required After Receiving DRC-10

The taxpayer may prevent the auction by immediately paying the outstanding dues along with any expenses incurred. If payment is not made, the auction proceeds as scheduled, and the goods are sold to recover the dues. Any balance amount, if left after adjusting liability, will be returned to the taxpayer.