Custody determines the procedural route
CGST Rule 152 applies where property to be attached is in the custody of a court or public officer. The proper officer sends the attachment order to that custodian, requesting that the property and interest or dividend becoming payable on it be held until recovery of the amount payable. This is a custody-specific procedure. It is not permission to treat every sum held by a court as belonging to the taxpayer or as money already paid to the Government. ICAI April 2026 GST bare law: CGST Rule 152.
Identify the asset and the taxpayer's interest
Obtain the relevant court or public-officer custody record, asset description, account or deposit reference and evidence of the taxpayer's interest. Separate the taxpayer's beneficial entitlement from third-party property and contested claims. The simple numerical illustrations assume those entitlement questions are resolved as stated. A claimant's gross assertion and an established ownership interest are different inputs; disclose the unresolved issue rather than assuming the full deposit is available for GST recovery. ICAI April 2026 GST bare law: CGST Rule 152.
Send the order to the actual custodian
Match the attachment order with its dispatch, receipt and custodian response. Rule 152 itself states this communication route rather than a direct instruction to the taxpayer to withdraw property from judicial custody. Check the legal authority and underlying recoverable dues in the actual file. The rule does not itself prescribe a named DRC form in its text, so do not invent one or substitute a form from a different recovery procedure without a legal basis. ICAI April 2026 GST bare law: CGST Rule 152.
Preserve income arising on the held property
The rule expressly includes interest and dividends becoming payable. Maintain an opening balance, additions, separately identified returns, authorised movements and closing held amount. Use actual custodian statements; a hypothetical interest percentage in a working paper is not a statutory GST yield or an entitlement to interest. Interest held on an asset is also distinct from interest charged on the tax demand. Mixing those two meanings of interest can obscure both the asset and the liability. ICAI April 2026 GST bare law: CGST Rule 152.
A hold is not automatically a payment
Keep columns for property held, amounts actually realised or remitted, and credits posted to the demand. Prevent the same bank remittance from being credited once from the custodian statement and again from the taxpayer's payment ledger. If other recovery channels are operating, reconcile confirmed credits against the same liability reference. Rule 152 does not, by itself, make the mere attachment a discharge of tax or create an automatic release mechanism for every surplus. ICAI April 2026 GST bare law: CGST Rule 152.
Close through supported communication
Where the underlying recoverable amount or ownership position changes, bring the supported order, payment evidence or adjudication to the proper officer and custodian and seek appropriate consequential action. Do not direct unilateral withdrawal from a controlled account. Preserve the final communications and distinguish a proposed release from an effective release. These controls help review an attachment file without promising that every ownership objection or payment claim will succeed. ICAI April 2026 GST bare law: CGST Rule 152.
Applicable primary references
ICAI April 2026 GST bare law: CGST Rule 152
Six worked illustrations
All facts and amounts below are fictional. Assumptions describe the model, not additional statutory rules.
Illustrative example 1: Held principal and later return
Assume identified property is a ₹10 lakh deposit and ₹0.40 lakh interest becomes payable during the hold. The controlled balance is ₹10.40 lakh. Without a remittance or credit, this does not mean ₹10.40 lakh of tax has been paid.
Illustrative example 2: Property below the demand
The established recoverable balance is ₹12 lakh and identified held property is ₹8 lakh. The difference is ₹4 lakh. This is an asset-coverage gap, not a rule that only ₹8 lakh remains legally payable.
Illustrative example 3: Actual recovery changes the ledger
Assume ₹7 lakh is due and ₹3 lakh is lawfully remitted and credited from the held property. The remaining demand is ₹4 lakh. A ₹5 lakh asset still held must not also be treated as a payment of that remaining demand.
Illustrative example 4: Do not duplicate one credit
An actual ₹2 lakh remittance appears in both the custodian statement and taxpayer's reconciliation. Against a ₹6 lakh demand, count it once, leaving ₹4 lakh; counting twice would wrongly show ₹2 lakh remaining.
Illustrative example 5: Resolved partial entitlement
A court-held fund is ₹15 lakh; assume the established taxpayer entitlement is ₹9 lakh and another person's entitlement is ₹6 lakh. Reconcile ₹9 lakh plus ₹6 lakh to ₹15 lakh. The model does not treat the third party's ₹6 lakh as the taxpayer's property.
Illustrative example 6: Dividend and interest are separate assets
Assume controlled securities have an identified ₹20 lakh value, with ₹0.60 lakh dividend and ₹0.10 lakh interest becoming payable. The tracked aggregate is ₹20.70 lakh, subject to valuation and entitlement. None of these figures automatically offsets the tax demand merely because it is tracked.
Ten-step verification table
| Step | Action | Evidence |
|---|---|---|
| 1 | Identify underlying dues | Reconcile the demand reference and confirmed recoverable amount. |
| 2 | Identify custodian | Obtain the court or public-officer custody record. |
| 3 | Describe property | Match deposit, account or security identifiers. |
| 4 | Check taxpayer entitlement | Separate resolved ownership from third-party claims. |
| 5 | Verify attachment order | Record authority, scope and covered property. |
| 6 | Confirm communication | Retain dispatch, delivery and custodian acknowledgment. |
| 7 | Track asset returns | Record interest and dividends separately from demand interest. |
| 8 | Verify actual realisation | Match remittances and demand credits with evidence. |
| 9 | Deduplicate credits | Reconcile other recovery and payment channels. |
| 10 | Document consequential action | Retain supported release or modification communications. |
Sixteen practitioner FAQs
1. When does Rule 152 apply?
Where property to be attached is in court or public-officer custody.
2. Who sends the attachment order?
The proper officer sends it to the court or public officer.
3. What does the request cover?
The property and interest or dividend becoming payable on it.
4. Does every court deposit belong to the taxpayer?
No. Establish the actual entitlement and competing claims.
5. Is the full held balance automatically recovered tax?
No. Distinguish a hold from realisation and liability credit.
6. Does Rule 152 itself name a DRC form?
Its text does not prescribe a named form for this request.
7. Can another recovery form be substituted casually?
No. Verify the actual legal route and applicable requirements.
8. Can the taxpayer withdraw despite the hold?
Do not assume unilateral withdrawal is permitted; examine the controlling orders.
9. Is asset interest the same as interest on tax?
No. Keep those figures in separate schedules.
10. Should dividends be tracked?
Yes, the rule expressly mentions dividends becoming payable.
11. Can estimated security value equal realised proceeds?
Not necessarily. Preserve the distinction between value and realisation.
12. How should duplicate remittance evidence be handled?
Match it to one transaction and credit the demand once.
13. What if the property covers less than the demand?
Record the gap without treating asset insufficiency as debt discharge.
14. What if ownership is contested?
Preserve the competing evidence and obtain appropriate determination or directions.
15. Does payment automatically authorise withdrawal of every asset?
Do not assume that; obtain and retain the consequential action required in the actual case.
16. What is the main closing control?
A bridge from identified property and returns to actual recoveries, credits and effective release records.
Conclusion
Rule 152 routes an attachment request to the court or public officer holding property. Reconcile the held asset and accruing returns separately from money actually credited against GST dues.