Section 80 – Payment of Tax and Other Amounts in Instalments

- February 07, 2026

Section 80 of CGST Act, 2017 – Payment of Tax and Other Amounts in Instalments

Updated on: February 2026 (as applicable till date)
Prepared by: Yours Tax Consultant

1. Objective of Section 80

Section 80 provides relief to taxpayers by allowing them to pay tax, interest, and penalty due under the CGST Act in instalments. It balances the Government’s interest in collection with the taxpayer’s financial capacity.

2. Applicability of Section 80

Section 80 applies when:

The taxpayer is unable to pay the total amount immediately
The amount is due under an order passed under Sections 73, 74, 76, or 77
The proper officer is satisfied that instalment payment is necessary in the interest of the taxpayer and revenue

3. Statutory Provision – Section 80 (Overview)

Section 80(1):
The proper officer may, on an application by the taxable person or on his own motion, allow the taxpayer to pay the amount due in instalments within such period and in such manner as may be prescribed.

Section 80(2):
Interest shall be payable on the remaining unpaid amount in accordance with Section 50.

This ensures compliance while offering financial flexibility.

4. Conditions for Allowing Instalments

Proper officer must be satisfied about the genuineness of the request
Taxpayer must have made a full disclosure of their financial situation
Payment schedule must be clearly defined in the order
Interest continues to accrue on outstanding amounts

5. Procedure for Application

Taxpayer submits written application to the proper officer
Officer may seek financial documents, statements, or other proofs
Order specifying number of instalments, amount, and due dates is issued
Payment is monitored by the proper officer

6. Interest on Instalments

Interest continues to be charged on the remaining amount as per Section 50. Partial payment reduces principal, and interest is recalculated accordingly.

7. Instalments & Penalty

Penalty may also be paid in instalments if allowed by the officer
Failure to adhere to instalment schedule may trigger recovery proceedings under Section 79

8. Legal Safeguards

Instalment facility does not absolve taxpayer from liability
Proper officer must record reasons for allowing instalments
Instalments must comply with interest provisions and timelines

9. Practical Considerations

Useful in cases of large demands under Sections 73/74
Prevents immediate coercive recovery
Ensures continued compliance with CGST obligations
Improves relationship between taxpayer and department

10. Related Provisions

11. Professional Insight

Section 80 is a key relief provision. Taxpayers facing genuine financial difficulty can leverage instalment payments to avoid coercive recovery. Proper documentation and timely compliance with instalment schedule are essential to prevent penalties or recovery actions.

Disclaimer: This article is prepared based on the CGST Act, notifications, Rules, and prevailing legal position as applicable till date. Instalment facility is subject to proper officer’s discretion and adherence to prescribed procedure.

Search This Blog

Tax Consultant