GST DRC-10 explained: auction of goods to recover GST dues

When goods are auctioned

Section 79(1)(b) allows the officer to detain and sell goods belonging to a defaulter that are under his control. Before the sale, the officer prepares an inventory and estimates market value. The DRC-10 notice states the goods to be sold and the purpose of the sale.

Goods may be under the officer's control because they were detained, seized, or attached in other proceedings. The officer may also require bidders to make a pre-bid deposit, which is returned to unsuccessful bidders.

Time before auction

The auction cannot be held earlier than 15 days from the date of the DRC-10 notice. Goods that are perishable or hazardous, or whose storage cost is likely to exceed their value, can be sold sooner. For goods detained in transit under Rule 144A, the period can also be shortened if they are likely to lose value.

How to stop the auction

Use the notice period. If the defaulter pays the dues, including recovery expenses, at an early stage, the rule requires the auction to be cancelled and the goods released. Get the outstanding amount confirmed in writing, pay against the demand, and send proof immediately.

• Confirm the demand, interest and expenses being recovered
• Pay against the order in the liability register, or adjust earlier DRC-03 payments through DRC-03A
• If an appeal with pre-deposit is pending, produce the acknowledgement
• Ask in writing for release of goods

If the auction proceeds

The successful bidder receives DRC-11 to pay, and the sale certificate is issued in DRC-12. If no bid is received or bids are non-competitive, the officer can cancel and re-auction. Sale proceeds go first towards the dues and expenses; ask for an account and any surplus.

Get it handled for you

Received a notice like this? Our chartered accountants draft the reply from your records and an authorised representative follows up with the officer, so you do not have to visit the department. Call or WhatsApp +91 63677 44602, or use the form below.

This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.