Rule 140 - Bond and security for release of seized goods
CGST Rules, 2017
ACTIVECONSOLIDATED_BASE_WITH_CURRENT_CONTROLindex,follow
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Finin2min Summary - Rule in 2 Minutes
Provisional release requires INS-04 bond for value and bank guarantee equal to applicable tax, interest and penalty; security may be encashed on non-production.
Exact operative text
140. Bond and security for release of seized goods.-(1) The seized goods may be released on a provisional
basis upon execution of a bond for the value of the goods in FORM GST INS-04 and furnishing of a security
in the form of a bank guarantee equivalent to the amount of applicable tax, interest and penalty payable.
Explanation.- For the purposes of the rules under the provisions of this Chapter, the ―applicable tax‖ shall
include central tax and State tax or central tax and the Union territory tax, as the case may be and the cess,
if any, payable under the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017). (2) In
case the person to whom the goods were released provisionally fails to produce the goods at the appointed
date and place indicated by the proper officer, the security shall be encashed and adjusted against the tax,
interest and penalty and fine, if any, payable in respect of such goods.
Paragraph-wise decode
Provisional release requires INS-04 bond for value and bank guarantee equal to applicable tax, interest and penalty; security may be encashed on non-production.
Section-Rule-Form-Notification bridge
No direct Rule certified in Phase 1. Check notifications, circulars, forms and corresponding State law.
The mapping is a legal concordance, not a round-robin related-link list. It is limited to instruments certified in this phase.
Practical example
Apply the rule to the relevant form, period, portal event and evidence trail before reaching a compliance conclusion.
Professional alert
Verify the latest official active Rule page, amending Gazette and portal version before filing or advising.
Implementation checklist
- Fix the transaction, taxable period and jurisdiction.
- Read every subsection, proviso, explanation and omission marker.
- Open the mapped Rule, form, notification and circular.
- Test State/UT variation and portal version.
- Preserve evidence, approvals, working papers and acknowledgements.
- Record the conclusion, assumptions, source date and reviewer.
Evidence and retention checklist
- Contract, purchase order, invoice or underlying transaction document.
- Registration, return, ledger, challan and portal acknowledgement.
- Official Act/Rule/notification version used and effective date.
- Internal tax position paper, computation and management approval.
- Correspondence, notices, replies, orders and appeal papers where applicable.
Practical Q&A
- What does rule 140 regulate?
- It regulates bond and security for release of seized goods. Read the exact text, conditions, exceptions and transaction date together.
- Which subordinate law should be checked?
- No direct CGST Rule has been certified in this phase. Notifications, circulars, forms and the corresponding SGST/UTGST layer may also apply.
- What evidence should be retained?
- Preserve the contract or transaction record, invoice or form, portal acknowledgement, payment/ledger evidence, correspondence, legal working and the official source version used.
- Can portal behaviour override the statute?
- No. Portal functionality is operational evidence; legal entitlement and liability remain controlled by the Act, Rules, notifications and binding decisions.