Notices, Demands & Recovery

Disposal of proceeds of sale of goods or conveyance and movable or immovable property

Rule 154 of the CGST Rules

Chapter 18 – Demands and Recovery Text as on 2026-09-05 Source CBIC

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Sale proceeds are applied first to the administrative cost of the sale, then to the dues recovered, then to any other amount owed under the Act or the State Acts, and the balance is returned to the person whose property was sold.

How this provision is built

The skeleton, clause by clause — useful when a notice cites a specific sub-clause.

(1) The amounts so realised from the sale of goods or conveyance, movable or immovable property, for the recovery of dues from a defaulter or for recovery of penalty payable under sub-section (3) of section 129 shall,- (a) f…
(2) where it is not possible to pay the balance of sale proceeds, as per clause (d) of sub-rule (1), to the person concerned within a period of six months from the date of sale of such goods or conveyance or such further per…
(3) of section 129 shall,- (a) first, be appropriated against the administrative cost of the recovery process; (b) next, be appropriated against the amount to be recovered or to the payment of the penalty payable under sub-s…

The exact words of the law

1,508 characters, unedited

Reproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.

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1 [Rule 154. Disposal of proceeds of sale of goods or conveyance and movable or immovable property. –

(1) The amounts so realised from the sale of goods or conveyance, movable or immovable property, for the recovery of dues from a defaulter or for recovery of penalty payable under sub-section

(3) of section 129 shall,-
(a) first, be appropriated against the administrative cost of the recovery process;
(b) next, be appropriated against the amount to be recovered or to the payment of the penalty payable under sub-section

(3) of section 129 , as the case may be;
(c) next, be appropriated against any other amount due from the defaulter under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017 and the rules made thereunder; and
(d) the balance, if any, shall be credited to the electronic cash ledger of the owner of the goods or conveyance as the case may be, in case the person is registered under the Act, and where the said person is not required to be registered under the Act, the said amount shall be credited to the bank account of the person concerned;

(2) where it is not possible to pay the balance of sale proceeds, as per clause
(d) of sub-rule (1), to the person concerned within a period of six months from the date of sale of such goods or conveyance or such further period as the proper officer may allow, such balance of sale proceeds shall be deposited with the Fund;]

What changed, and when

The amendment trail, newest first — because the version that applies to your case depends on the period.

2022-01-01 · Inserted

40/2021-CTdated

Inserted (w.e.f. 01.01.2022) vide Notification No. 40/2021 – CT dated 29.12.2021 for "Rule 154. Disposal of proceeds of sale of goods and movable or immovable property . – The amounts so realised from the sale of goods, movable or immovable property, for the recovery of dues from a defaulter shall,-

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Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.

rule 154disposal of proceeds of sale of goods or conveyance and movable or immovable property

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