DRC-16 — Certificate for Attachment of Immovable Property

DRC-16 is issued when the GST department formally attaches immovable property belonging to a taxpayer for recovery of outstanding dues. It acts as an official attachment certificate, legally restricting the taxpayer from selling, transferring, or creating any interest in the property. This attachment is a recovery safeguard to secure government revenue before initiating sale proceedings.

When DRC-16 Is Issued

The form is used whenever immovable property is identified as recoverable asset and needs to be secured before sale.

• Issued when land, building, or fixed assets need to be attached for recovery.
• Triggered when the taxpayer does not pay dues despite demand and reminders.
• Applied during recovery under Section 79, before issuing DRC-15.
• Used to publicly declare restriction on dealing with the property.

Legal Framework

DRC-16 follows the statutory recovery mechanism which allows the department to attach immovable property to prevent disposal or concealment.

• Governed by Rule 147(1) of the CGST Rules.
• Supported by recovery authority under Section 79(1)(b) of the CGST Act.
• Must be issued by the Proper Officer who is executing the recovery.
• Creates a legal encumbrance on the property until dues are paid or sale is completed.

Information Mentioned in DRC-16

The form records all details needed to identify and secure the immovable property.

• Contains GSTIN, taxpayer name, and recovery reference number.
• Specifies the description of property—location, boundaries, measurements, identifiers.
• Mentions the amount due that the attachment seeks to secure.
• States prohibition on sale, transfer, lease, or mortgage by the taxpayer.
• Directs the local authorities or registry office to record the attachment.

Practical Importance

DRC-16 is a powerful recovery tool because it legally freezes the taxpayer’s immovable assets until recovery is completed.

• Prevents the taxpayer from disposing of property to avoid recovery.
• Puts third parties on notice that the property cannot be transferred.
• Protects the government’s interest before initiating sale.
• Provides documentary evidence of lawful attachment in any future dispute.

Action After Issuance

The taxpayer must either clear the outstanding dues or negotiate for instalments or relief. The property remains attached until dues are paid or further recovery steps—such as sale under DRC-15—are completed.