GST DRC-12 explained: sale certificate for goods or property sold in recovery

When it is issued

After the successful bidder pays the full amount following DRC-11, the officer transfers possession and issues DRC-12. It is used for goods sold under Section 79(1)(b), property sold under Section 79(1)(d), and goods sold under Section 129(6) after detention in transit.

The certificate typically records the date of auction, the description of what was sold, the sale price, and the purchaser's name. Keep it safe, because a duplicate may be difficult to obtain later.

For the purchaser

• Check description, quantity, identification numbers and the price
• Keep it with the auction notice, bid record and payment proof
• For vehicles or immovable property, use it with the registration authorities as required under the relevant law
• Check whether any other dues or encumbrances were disclosed in the sale terms

For the defaulter

DRC-12 marks completion of the sale. The proceeds are applied to the dues and recovery expenses. Ask the officer in writing for the account: sale price, expenses, amount adjusted against each demand, and the balance still due or any surplus refundable. Check that the liability register reflects the adjustment.

Looking ahead

If dues remain after the sale, recovery can continue through other modes. If the underlying demand is later reduced in appeal, Section 84 and Rule 161 require the department to give effect to the reduced demand, and any excess recovered becomes refundable; see DRC-25. Keep all auction documents for that purpose.

Ask for the account in writing soon after the sale, while the officer's records are fresh, and check that recovery expenses deducted are supported by details rather than a lump sum.

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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.