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Section 78 of the CGST Act, 2017

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GST›CGST Act, 2017›Chapter XV, Demands and Recovery

At a glance

Bars, duties and time limits

78Pay an amount under an order within three months of service; failure triggers recovery proceedings.

Procedure, powers and definitions

78 provisoFor reasons recorded in writing, the proper officer may require payment within a specified shorter period where expedient in the interest of revenue.
78Section 80 provides for extending payment time or allowing monthly instalments and can alter the ordinary period.
78 provisoThe law does not settle whether a shorter period must be specified in the order or can be required after service and before the ordinary period expires.

A taxable person must pay an amount under an order within three months of its service; recovery follows a failure to pay. The proper officer can require an earlier payment for revenue protection, giving reasons in writing. Section 80 separately provides for extending payment time or allowing monthly instalments, which can alter the ordinary payment period under this section.^[1]

Quick facts

Section 78, CGST Act, 2017

Initiation of recovery proceedings

Provision
Act	Central Goods and Services Tax Act, 2017
Chapter	XV, Demands and Recovery
Section title	Initiation of recovery proceedings
In force from	1 July 2017^[1]
Amendments
Last amendment	1 July 2017: Enforced the section. There is no later amendment footnote on this section. (—)
Amendments	1 footnote in the CBIC text (table)
Related provisions
Rules	Rule 142 of the CGST Rules, 2017
Sections	2, 62, 63, 64, 73, 74, 74A, 76, 79, 80, 169
Structure 78 main limb, opening wordsThe amount payable in pursuance of an order 78 main limb, the periodPayment within three months of service 78 main limb, closing wordsFailure to pay and the initiation of recovery proceedings the provisoA period less than three months specified by the proper officer
Source
Law text	CBIC tax information portal, served on 17 September 2026^[1]
Questions reviewed	Prashant Prakash, 22 September 2026

Text

The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.^[1] The Act as published in the Gazette of India is the legal source.

Section 78, verbatim (show)

*

Section

78.

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.

*Enforced w.e.f. 1st July, 2017.

Questions to answer on the file

Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.

Scope the section as a whole

Questions to answer on the file1 question

What is the matter about?

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The amount payable in pursuance of an order 78 main limb, opening words

Questions to answer on the file4 questions

Is the person from whom the amount is claimed a taxable person?
Has an order been passed under this Act against that person?
Is the amount payable in pursuance of that order?
What amount is payable in pursuance of that order?

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Payment within three months of service 78 main limb, the period

Questions to answer on the file4 questions

Has the order been served on the taxable person?
On what date was the order served on the taxable person?
Has the amount payable in pursuance of the order been paid by that person?
On what date was that amount paid?

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Failure to pay and the initiation of recovery proceedings 78 main limb, closing words

Questions to answer on the file3 questions

Did the taxable person fail to pay the amount within the period this section allows?
Have recovery proceedings been initiated against the taxable person?
On what date were recovery proceedings initiated?

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A period less than three months specified by the proper officer the proviso

Questions to answer on the file5 questions

Has an officer required the taxable person to make the payment within a period less than three months?
Is the officer who made that requirement the proper officer?
Did that officer consider it expedient in the interest of revenue to require the shorter period?
Were the reasons for requiring the shorter period recorded in writing?
What period did that officer specify for the payment?

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Amendment history

The CBIC text carries 1 footnote. The table gives each in the source's own terms. Effective dates are as the footnotes state them.^[1]

Amendments to section 78 as footnoted in the CBIC text
Note	Change	Instrument	Effective from
	Enforced the section. There is no later amendment footnote on this section.	—	1st July, 2017

Provisions connected to Section 78
Provision	Connection	Words that tie them
Section 73	this provision requires an order passed under this Act (Section 73,:S74,:S74A,:S62,:S63,:S64,:S76 among others)	78 "in pursuance of an order passed under this Act"
Section 169	this provision requires Section 169	78 "from the date of service of such order"
Section 2	this provision defined by Section 2 at 2(107)	78 "Any amount payable by a taxable person"
Section 2	this provision defined by Section 2 at 2(91)	proviso "where the proper officer considers it expedient in the interest of revenue"
Section 79	this provision requires Section 79	78 "failing which recovery proceedings shall be initiated", section 79 laying down the modes of that recovery
Section 80	Section 80 overridden by this provision	80 "extend the time for payment or allow payment of any amount due under this Act... in monthly instalments"

Circulars and notifications

Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.

Circulars (4)

Number	Date	Subject
Circular No. 224/18/2024-GST	11 July 2024	Guidelines for recovery of outstanding dues, in cases wherein first appeal has been disposed of, till Appellate Tribunal comes into operation.
Circular No. 129/48/2019-GST	24 December 2019	Standard Operating Procedure to be followed in case of non-filers of returns-reg.
Circular No. 117/36/2019-GST	11 October 2019	Clarification on applicability of GST exemption to the DG Shipping approved maritime courses conducted by Maritime Training Institutes of India.
Circular No. 3/03/2017-GST	5 July 2017	Proper officer relating to provisions other than Registration and Composition under the Central Goods and Services Tax Act, 2017-Reg.

Unsettled questions

The words of section 78 do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.

When may the proper officer require payment within a period less than three months: only in the order itself, or at any time after the order has been served and before the three months expire? The proviso fixes no time for the requirement and says only that the officer "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".

See also

Section 80 of the CGST Act, 2017: payment of tax and other amount in instalments
Section 79 of the CGST Act, 2017: recovery of tax
Section 169 of the CGST Act, 2017: service of notice in certain circumstances

References

Central Board of Indirect Taxes and Customs. "Section 78. Initiation of recovery proceedings". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.

External links

CGST Act, 2017, Section 78 on the CBIC tax information portal