GST DRC-16 explained: attachment of movable or immovable property for recovery

What the order does

The officer prepares a list of the defaulter's property, estimates its market value, and issues DRC-16 attaching it. The order prohibits you from transferring or creating any charge on the property. For immovable property, the order is affixed on the property and stays until the sale is confirmed; it is also sent to the registering authority so that no transfer is registered.

Shares and securities can also be attached, and the depository or company can be asked to record the attachment. Movable property may be physically seized under the provisions of the Act dealing with inspection, search and seizure.

Why it is serious

DRC-16 is followed by an e-auction notice in DRC-17. Transfers made to defraud the revenue after dues arise can be treated as void under Section 81. Act quickly while the property can still be released.

What to do

Respond in writing and keep acknowledgements. If the attached property is worth far more than the dues, ask that attachment be limited or that a single asset be released on suitable security.

• Identify the demand being recovered and check it is final and unpaid
• Show any payment, DRC-03A adjustment or appeal with pre-deposit
• Pay the dues if correct, or seek instalments under DRC-20 where eligible
• If the property does not belong to you or is jointly owned, put this on record with documents
• Ask in writing for release once dues are paid or stayed

After payment

Once dues and expenses are paid, request a written order lifting the attachment and ensure the registering authority, bank or depository is informed. Keep copies of the release order with your title documents. A professional can prepare the submissions and follow up with each authority involved.

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.