Section 78 gives the taxpayer three months after an order to pay — or to appeal and obtain the stay that comes with the pre-deposit — before recovery proceedings can begin.
Key points
- Under section 78 of the CGST Act, 2017 an amount payable under an order must be paid within three months of its service; recovery proceedings follow if it is not.
- The proper officer may require payment within a shorter period if he considers it expedient in the interest of revenue, for reasons recorded in writing (proviso).
- An appeal with the pre-deposit under section 107(6) stays recovery of the balance (section 107(7)).
The provisions
78Initiation of recovery proceedings
Statutory text
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.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- How long after a GST demand order does recovery start?
- Three months from service of the order (section 78 CGST), unless the officer records reasons to require earlier payment. An appeal with the pre-deposit stays recovery of the balance.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The three months match the time for appeal under section 107(1). Recovery before that period ends needs specific recorded reasons, communicated to the taxpayer; a general apprehension is not enough. Recovery methods are in section 79.