Chapter XV - Demands and recovery
Section 78
Section 78: Initiation of recovery proceedings
Section 78 ordinarily allows three months after service of a CGST order to pay before recovery, with a reasoned shorter period when revenue protection requires it.
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Need advice on Section 78?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
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, for reasons to be recorded in writing, require the said taxable person to make such payment within such period less than a period of three months as may be specified by him.
Introduction
Recovery of an amount payable under a GST order normally follows a payment window measured from service of the order.
Key takeaways
Ordinary payment window
The taxable person ordinarily has three months after service of the order to pay.
Earlier recovery
A proper officer may require a shorter period in the interest of revenue, but must record reasons in writing.
After non-payment
Failure to pay within the applicable period leads to recovery proceedings under the Act.
Ordinary payment window
The taxable person ordinarily has three months after service of the order to pay.
Earlier recovery
A proper officer may require a shorter period in the interest of revenue, but must record reasons in writing.
After non-payment
Failure to pay within the applicable period leads to recovery proceedings under the Act.
Practical checklist
Do
- Record the order service date.
- Calculate the stated payment period and review any written shorter-period reasons.
- Reconcile payment or appeal/stay status before the recovery stage.
Avoid
- Assume recovery or attachment is valid without checking the statutory prerequisites.
Frequently asked questions
Does recovery always wait exactly three months?
No. The proper officer can specify a shorter reasoned period in the interest of revenue.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026