Section 83 lets the Commissioner freeze a taxpayer's property — most often bank accounts and receivables — while proceedings are pending, so that any eventual demand can be collected. The Supreme Court has called it a draconian power and laid down strict conditions for its use.
Key points
- Under section 83(1) of the CGST Act, 2017, from 01.01.2022, after initiation of any proceeding under Chapter XII (assessment), XIV (inspection, search, seizure, arrest) or XV (demands and recovery), the Commissioner may provisionally attach any property, including a bank account, of the taxable person or of a person liable to penalty under section 122(1A), if he is of the opinion that it is necessary to protect the revenue.
- The attachment ceases after one year from the order (section 83(2)).
- In Radha Krishan Industries v State of Himachal Pradesh (2021) the Supreme Court held that the opinion must rest on tangible material showing the taxpayer is likely to defeat the demand; proceedings must be pending against that person; and the objection and hearing under Rule 159(5) are mandatory.
- An attachment may be challenged by writ petition, since no appeal lies against it.
The provisions
83(1)Provisional attachment
Statutory text
1[(1) Where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue it is necessary so to do, he may, by order in writing, attach provisionally, any property, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122, in such manner as may be prescribed.]
*Enforced w.e.f. 1st July, 2017.
1. Substituted (w.e.f. 1st January, 2022 vide Notification No. 39/2021-C.T., dated 21st December, 2021) by s. 115 of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021 for
"(1) Where during the pendency of any proceedings under section 62 or section 63 or section 64 or section 67 or section 73 or section 74, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the taxable person in such manner as may be prescribed."
- Rule 159, CGST Rules; Forms GST DRC-22, DRC-23
Case on this provision
Radha Krishan Industries v State of Himachal Pradesh
(2021) 6 SCC 771 · 20.04.2021 · Supreme Court, 2 Judges (D.Y. Chandrachud, M.R. Shah JJ.)
- Facts
- A manufacturer had bought from a supplier whose directors were later arrested for passing fake credit, and against whom a demand of about Rs. 39.48 crore was raised. The Joint Commissioner, as delegate of the Commissioner, provisionally attached the manufacturer's receivables on 28.10.2020 — before proceedings under section 74 were initiated against it on 27.11.2020. An identical attachment in 2019 had been withdrawn after the manufacturer objected. The High Court declined to interfere, citing the alternative remedy.
- Held
- Appeal allowed and the attachment set aside. The power is draconian and must be exercised strictly in terms of the statute. The Commissioner's opinion must be formed on tangible material showing that the taxable person is likely to defeat the eventual demand; proceedings under the specified sections must be pending against that person when the order is made; the right to object and to be heard under Rule 159(5) is mandatory; and a withdrawn attachment cannot be reissued on the same grounds. Because no appeal lies against an attachment made by a delegate of the Commissioner, the writ petition was maintainable.
- Since then
- From 01.01.2022 section 83 applies after initiation of "any proceeding" under Chapters XII, XIV or XV, which includes an inspection or search. The requirements of tangible material, proportionality and a hearing on objections remain.
- Here
- An attachment order must record the material showing a risk to collection, must follow the initiation of proceedings, and must be followed by a real hearing on objections. Attaching the account through which business runs requires particular justification.
83(2)Lapse after one year
Statutory text
(2) Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (1).
What it means
The attachment ends automatically one year after the order. It cannot be renewed on the same grounds. If a demand is confirmed, recovery proceeds under section 79.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- Can GST authorities freeze a bank account?
- Yes, by provisional attachment under section 83 of the CGST Act after proceedings have begun, for up to one year. The Supreme Court in Radha Krishan Industries (2021) required tangible material showing a risk to collection and a hearing on the taxpayer's objections.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The attachment order is in Form DRC-22 (Rule 159). The person may file objections within seven days, and must be heard; the Commissioner may release the property on being satisfied that it is not liable to attachment (DRC-23). The 2021 substitution widened the trigger from pending proceedings under specified sections to "any proceeding" under three chapters, and extended the power to persons liable to penalty under section 122(1A) — those who retain the benefit of, or cause, fake-invoice transactions.