Section 80 gives a taxpayer facing a large demand a way to pay over time. The Commissioner may extend time or allow monthly instalments, with interest, but self-assessed tax shown in a return must be paid in full.
Key points
- Under section 80 of the CGST Act, 2017 the Commissioner may, on application and for recorded reasons, extend time or allow payment in monthly instalments not exceeding twenty-four, with interest under section 50.
- Self-assessed tax due under a return is excluded.
- If one instalment is missed, the whole outstanding balance becomes payable at once and may be recovered without further notice (proviso).
- Rule 158 sets conditions: the application is in Form DRC-20; instalments are not allowed where the amount is below Rs. 25,000, or where the person has already defaulted on an amount for which recovery is in progress, among other conditions.
The provisions
80Payment in instalments
Statutory text
On an application filed by a taxable person, the Commissioner may, for reasons to be recorded in writing, extend the time for payment or allow payment of any amount due under this Act, other than the amount due as per the liability self-assessed in any return, by such person in monthly instalments not exceeding twenty four, subject to payment of interest under section 50 and subject to such conditions and limitations as may be prescribed:
Provided that where there is default in payment of any one instalment on its due date, the whole outstanding balance payable on such date shall become due and payable forthwith and shall, without any further notice being served on the person, be liable for recovery.
*Enforced w.e.f. 1st July, 2017.
- Rule 158, CGST Rules; Forms GST DRC-20, DRC-21
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
- Can a GST demand be paid in instalments?
- Yes. Under section 80 of the CGST Act the Commissioner may allow up to twenty-four monthly instalments with interest, except for self-assessed tax in a return; missing one instalment makes the whole balance due.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The Commissioner considers the taxpayer's financial position and may require security. The order is in Form DRC-21. Interest continues on the unpaid balance.