What to do in case gst department has freeze the bank account of the registered taxpayer for just 15000 input

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What to do in case gst department has freeze the bank account of the registered taxpayer for just 15000 input 

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advotalk.com

In India, freezing of a bank account by the GST department for a small amount (e.g., ₹15,000 of ITC) is generally considered disproportionate, unless there is a larger alleged tax liability or investigation. Below is the correct and practical course of action.

1. Understand the Legal Basis of Account Freezing

Bank accounts are usually frozen under Section 83 of the CGST Act, 2017 (Provisional Attachment).

Key legal points:

  • Section 83 can be invoked only when proceedings are pending under Sections 62, 63, 64, 67, 73, or 74.
  • Attachment must be necessary to protect government revenue.
  • Attachment should be proportionate to the alleged liability.

For ₹15,000 ITC, courts have repeatedly held such attachment to be arbitrary and excessive.

2. Immediately Ask for the Attachment Order

Request in writing:

  • Copy of Provisional Attachment Order (Form GST DRC-22)
  • Details of pending proceedings under which Section 83 was invoked
  • Calculation sheet showing how ₹15,000 justifies bank attachment

If DRC-22 is not issued, the freeze itself is illegal.

3. File Objection Under Rule 159(5)

Under Rule 159(5) of CGST Rules, the taxpayer has a right to object.

What to do:
  • File written objection to the Commissioner/Proper Officer within 7 days
  • Mention:
    • Amount involved is only ₹15,000
    • Business operations are severely affected
    • Attachment is disproportionate
    • Willingness to pay / reverse ITC if required
Relief you can seek:
  • Immediate de-freezing of bank account
  • Alternatively, restriction limited only to the disputed amount

4. Offer Reversal or Payment (Fastest Practical Solution)

If the dispute is only about ₹15,000 ITC:

  • Voluntarily reverse the ITC in GSTR-3B OR
  • Pay ₹15,000 via DRC-03

Many officers lift the attachment immediately once payment/reversal is done.

5. Cite High Court Judgments (Very Effective)

You or your advocate can rely on these principles (no need to quote full cases):

  • Bank attachment for small amounts is arbitrary
  • Attachment should not paralyze business
  • Section 83 is an extraordinary power, to be used sparingly
  • Proportionality is mandatory

Courts have repeatedly ordered immediate de-freezing in such cases.

6. If Officer Does Not Cooperate → Legal Remedy

If objection is ignored:

  • File representation to the Principal Commissioner
  • As a last resort, file a Writ Petition in High Court

For ₹15,000, courts usually grant relief quickly.

7. Practical Advice (Based on Experience)

For such a small amount:

  • First preference: Reverse ITC / Pay under protest → Get account de-frozen
  • Second: Rule 159(5) objection
  • Third: Legal notice / Writ (if harassment continues)

 

Disclaimer:
This information is provided for general guidance and educational purposes only and does not constitute legal, tax, or professional advice. The applicability of GST laws may vary based on specific facts and circumstances. Readers are advised to consult a qualified tax professional or legal advisor before taking any action based on this information.

 

sandeep.kataria08's profile picture

sandeep.kataria08

यदि किसी व्यक्ति ka roka दिनांक 29 octo 2025को हुई हो और विवाह की तिथि 23-03-2026 निर्धारित हो, लेकिन सगाई के बाद लड़का इस रिश्ते से खुश नहीं है क्योंकि लड़की शुरू से ही झूठ बोल रही है, तो ऐसी स्थिति में लड़के को क्या करना चाहिए?

क्या सगाई या विवाह तोड़ने पर लड़के या उसके परिवार के विरुद्ध कोई कानूनी, आपराधिक या पुलिस मामला बन सकता है?
यदि लड़की या उसके परिवार वाले झूठा मामला दर्ज कराने की धमकी देकर शादी के लिए दबाव बना रहे हों, तो लड़के को क्या कदम उठाने चाहिए?