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:

1. This Guidelines has been issued by CBIC , GST Policy wing, Government of India dated 30-05-2024.
2. The Guidelines is for Intiating recovery proceedings before 3 months from the date of service of demand order.
3. 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.
4. 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
5. In case of revenue reasons, if an officer can require the payment before end of 3 months. The decision must be in written.
6. Proper officers must follow these guidelines for initiating recovery proceedings to ensure compliance with CGST Act.

Download-Instruction No 01/2024