DRC-22 — Order for Provisional Attachment of Property

DRC-22 is issued when the GST Commissioner decides to provisionally attach property, bank accounts, or assets of a taxpayer to protect revenue during ongoing proceedings. It is a precautionary measure used when the department believes the taxpayer may dispose of assets, reduce value of property, or obstruct recovery. This attachment is temporary but powerful and remains in force until the conclusion of proceedings under Section 83.

When DRC-22 Is Issued

DRC-22 is issued only during active proceedings and not after adjudication is completed.

• Used during investigation, audit, inspection, intelligence enquiry, or summons proceedings.
• Applied when the taxpayer is suspected of diverting funds or hiding assets.
• Triggered when large unpaid liability is anticipated based on early findings.
• Issued when immediate action is needed to secure government revenue.

Legal Framework

Provisional attachment under DRC-22 is one of the strongest powers available to the department but is strictly controlled by law.

• Issued under Section 83 of the CGST Act.
• Implemented as per Rule 159(1) of the CGST Rules.
• Ordered only by the Commissioner or authorised senior officer.
• Attachment continues until lifted by order in DRC-23 or expiry of the statutory period.

Details Mentioned in DRC-22

The form identifies the property being attached and formally prohibits dealing with it.

• States GSTIN, name of taxpayer, and the ongoing proceeding reference.
• Specifies the property provisionally attached—bank account, cash credit, land, building, vehicles, stock, etc.
• Instructs banks or authorities not to allow withdrawal, transfer, or disposal.
• Mentions legal authority and purpose of preserving revenue interest.
• Notifies the taxpayer that attachment is temporary and reviewable.

Practical Importance

DRC-22 is impactful because it immediately freezes assets and prevents the taxpayer from moving funds, reducing property value, or transferring ownership.

• Protects government revenue during investigations involving suspected evasion.
• Prevents the taxpayer from liquidating or concealing assets.
• Alerts banks and registries to stop transactions linked to attached property.
• Acts as a deterrent for fraudulent or evasive conduct.

Action After Receiving DRC-22

The taxpayer may request modification or removal of the attachment by submitting objections to the Commissioner. If the Commissioner finds the attachment unnecessary or excessive, it may be lifted through FORM DRC-23. Until lifted, the taxpayer must not deal with the attached property.