Guidelines for Initiation of Recovery Proceedings
Government has issued Guidelines for Initiation of Recovery Proceedings before 3 months from the date of service of demand order.Summary of the Instruction are as under:
- This Guidelines has been issued by CBIC , GST Policy wing, Government of India dated 30-05-2024.
- The Guidelines is for Intiating recovery proceedings before 3 months from the date of service of demand order.
- The Base of Guidelines is Section 79 (1) of CGST Act,2017 and section 78 of CGST Act,2017. Section 79(1) says if a person owes taxes and does not pay the tax the government can start recovery actions. Section 78 says Generally the person has 3 months to pay after receiving the demand order. If they dont pay with in 3 months , recovery actions will begin.
- As per General rule, the government will start recovery actions only after 3 months from the date the demand order is given, if the person has not paid
- In case of revenue reasons, if an officer can require the payment before end of 3 months. The decision must be in written.
- Proper officers must follow these guidelines for initiating recovery proceedings to ensure compliance with CGST Act.
