Section 78 of GST – Initiation of recovery proceedings. Everything you want to know about GST Section 78. In this section you may find all details for “Initiation of recovery proceedings” as per GST Act 2017. Detailed Analysis of GST Section 78 of GST Act 2017. This Act may be called the CGST Act, 2017. We Provide Complete Details for All GST Section’s and In this article you may find all details for GST Section 78.
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Section 78 of GST – Initiation of recovery proceedings
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.
Related Provisions of the Statute
| Section or Rule | Description |
| Section 79 | Recovery of tax |
| Section 84 | Continuation and validation of certain recovery proceedings |
Analysis of this section
Introduction -This provision empowers the proper officer to collect any amount which is payable by a taxable person in pursuance of an order passed under the Act.
Analysis
(a) This section enables initiation of proceedings for recovery of the amount from a taxable person.
(b) The amount shall be paid by taxable person within a period of 3 months of the service of order, failing which the Proper Officer shall initiate the recovery proceedings. Note that time to file appeal under section 107 is 3 months and in harmony with that time limit, recovery action is kept in abeyance until that time is passed. Although additional time to file appeal (1 month before Appellate Authority and 3 months before Appellate Tribunal) is permitted. Recovery action need not be kept in abeyance until additional time is passed. Additional time is available not as a right but a remedy if sufficient cause is shown. Care must be taken to avoid delay in filing appeal so that recovery action is not initiated.
(c) If it is in the interest of revenue, the proper officer after recording the reasons in writing, may initiate the recovery proceedings even before the completion of the said period of 3 months. However, this section empowers the Proper Officer in the interest of revenue (after recording the reasons) to initiate recovery proceedings even before the said completion of 3 months.
Comparative review
There is no similar provision under erstwhile Central Indirect Tax laws.
FAQs
1. When shall amount be payable by a taxable person in pursuance of order passed under this Act?
In normal course, any amount payable by a taxable person in pursuance of an order passed under the Act shall be paid by such person within 3 months from the date of service of such order.
2. When can proper officer require the taxable person, to make payment of payable amount within such shorter period as may be specified by him?
When the proper officer considers it necessary in the interest of revenue, he may, after recording reasons in writing, ask the said taxable person, to make such payment within such shorter period as may be specified by him.
Frequently Asked Questions
When is the amount payable by a taxable person in pursuance of order passed under this Act?
In the normal course, any amount payable by a taxable person in pursuance of an order passed under the Act shall be paid by such person within 3 months from the date of service of such order.
When can the proper officer require a taxable person to make payment of the amount specified in the order, within such shorter period as may be specified by him?
When the proper officer considers it necessary in the interest of revenue, he may, after recording reasons in writing, ask the said taxable person, to make the payment within such shorter period as may be specified by him.
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