Rule 151 - Attachment of debts and shares, etc
CGST Rules, 2017
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Finin2min Summary - Rule in 2 Minutes
Attachment of debts, shares and securities follows prescribed prohibitory orders and payment/transfer mechanics.
Exact operative text
151. Attachment of debts and shares, etc.- (1) A debt not secured by a negotiable instrument, a share in a
corporation, or other movable property not in the possession of the defaulter except for property deposited
in, or in the custody of any court shall be attached by a written order in FORM GST DRC-16prohibiting.- (a)
in the case of a debt, the creditor from recovering the debt and the debtor from making payment thereof until
the receipt of a further order from the proper officer; (b) in the case of a share, the person in whose name
the share may be standing from transferring the same or receiving any dividend thereon; (c) in the case of
any other movable property, the person in possession of the same from giving it to the defaulter. (2) A copy
of such order shall be affixed on some conspicuous part of the office of the proper officer, and another copy
shall be sent, in the case of debt, to the debtor, and in the case of shares, to the registered address of the
corporation and in the case of other movable property, to the person in possession of the same. (3) A debtor,
prohibited under clause (a) of sub-rule (1), may pay the amount of his debt to the proper officer, and such
payment shall be deemed as paid to the defaulter.
Paragraph-wise decode
Attachment of debts, shares and securities follows prescribed prohibitory orders and payment/transfer mechanics.
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 151 regulate?
- It regulates attachment of debts and shares, etc. 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.