Chapter VI - Demands and recovery
Section 13
Section 13: Recovery of tax
Section 13 allows the proper central-tax officer recovering central-tax arrears to also recover unpaid UTGST tax, interest or penalty and credit the recovery to the appropriate UTGST account.
On this page
Need advice on Section 13?
This article is for general information. Refer to the Union Territory 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
(1) Where any amount of tax, interest or penalty is payable by a person to the Government under any of the provisions of this Act or the rules made thereunder and which remains unpaid, the proper officer of central tax, during the course of recovery of said tax arrears, may recover the amount from the said person as if it were an arrear of central tax and credit the amount so recovered to the account of the Government under the appropriate head of Union territory tax.
(2) Where the amount recovered under sub-section (1) is less than the amount due to the Government under this Act and the Central Goods and Services Tax Act, the amount to be credited to the account of the Government shall be in proportion to the amount due as Union territory tax and central tax.
Key takeaways
Recovery mechanism
The proper central-tax officer may recover an unpaid UTGST amount as if it were a central-tax arrear during central-tax recovery.
Correct tax account
Recovered UTGST is credited under the appropriate Union territory tax head.
Partial recovery
If recovery is less than the combined UTGST and CGST dues, allocation must be proportional to the amounts due under the two Acts.
Recovery mechanism
The proper central-tax officer may recover an unpaid UTGST amount as if it were a central-tax arrear during central-tax recovery.
Correct tax account
Recovered UTGST is credited under the appropriate Union territory tax head.
Partial recovery
If recovery is less than the combined UTGST and CGST dues, allocation must be proportional to the amounts due under the two Acts.
Practical checklist
Do
- Reconcile the amount demanded separately under CGST and UTGST.
- Check whether each amount remains unpaid before recovery.
- If recovery is partial, verify the proportional allocation under Section 13(2).
Frequently asked questions
Does a central-tax recovery turn UTGST into CGST?
No. The officer may use the recovery route, but the amount recovered for UTGST must be credited under the UTGST head.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026