GST
Recovery started before the three-month window ended
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Facts
Sec 78 gives three months to pay. Its proviso allows the officer to require payment earlier if he thinks it is in the interest of revenue, but he must record reasons in writing.
Provisions and law
- Sec 78, CGST Act 2017Amount in an order is payable within three months, after which recovery starts
- Sec 79, CGST Act 2017Recovery of dues, including from bank accounts and third parties
- Sec 107(7), CGST Act 2017Recovery of the balance is stayed once the pre-deposit is paid
Analysis
Ask for the recorded reasons. Early recovery without reasons can be challenged, often in a writ petition. The quickest practical protection is to file the appeal with pre-deposit, which stays recovery of the balance under Sec 107(7).
Conclusion
- Ask the officer in writing for the recorded reasons
- File APL-01 with pre-deposit quickly
- Send the acknowledgement to the officer and the bank
- Consider a writ petition if recovery continues without reasons
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