As per the GST law, if a person who is taxable does not pay the amount as mentioned in an order issued under the CGST Act within three months from the date such order is served, the tax officer can recover by initiating proceedings only after the expiry of this period.
But in certain cases the tax officers have been initiating the recovery before the laps of the three months period.
To ensure a uniform procedure is followed in the implementation of the law across the field formations, the CBIC has issued instructions to be followed in cases where it is necessary, in the interest of revenue collection, to initiate recovery before the period of three months from the date of service of the order.
In cases where early recovery is deemed necessary, the jurisdictional Deputy or Assistant Commissioner must present the case, to the jurisdictional Principal Commissioner or Commissioner of Central Tax, specifying the reasons for early recovery.
The Principal Commissioner or Commissioner must record these reasons in writing and can issue directions to the taxable person to pay the specified amount in less than three months from the order’s service date.
