Section 78 – Initiation of Recovery Proceedings
Section 78 of CGST Act, 2017 – Initiation of Recovery Proceedings Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Objective of Section 78 Section 78 governs the time from which recovery proceedings can be initiated by the GST department after a tax demand is confirmed. This section balances: Revenue interest of the Government, and Reasonable time to the taxpayer to make payment 2. Statutory Provision – Section 78 Section 78: Any amount payable by a taxable person in pursuance of an order passed under this Act shall be paid by such person within a period of three months from the date of service of such order failing which recovery proceedings shall be initiated: Provided that where the proper officer considers it expedient in the interest of revenue, he may require the taxable person to make such payment within such period as may be specified by him in the order. 3. Normal Rule – 3 Months’ Time As a g...