The CBIC has stated that the Principal Commissioner or commissioner-level officers posited to have jurisdiction can issue directions for collection of GST dues before the expiry of the three months from the date the demand order is served.
That is, if a taxable person fails to pay the amount specified under an order issued under subsection (1) of Section 64 of the CGST Act after three months of the service of such order, a tax officer cannot take any recovery proceedings till the expiry of such a period of three months.
But in special circumstances, which can be justified in the context of revenue collection, the proper officer may, by writing, request that a taxable person deposit the amount within any period exceeding three months.
The CBIC stated that they have been informed that some field formations have been undertaking recovery before the set period of three months from the date of serving of the order, regardless of the scenarios where the taxable personality has not been ordered under intimation by the proper officer about reasons for payment to be made in a shorter period in writing.
“Thus, for the purpose of bringing uniformity in the extent of variation in implementation of the provisions of these laws by the field formations, it is issued hereunder the instructions to be followed in cases where it is necessary where, in view of the interest of revenue, it is proposed to start recovery before the expiry of a period of three months from the date of service of the order,” CBIC added.
As a rule, recovery proceedings are initiated by the Deputy or Assistant Commissioner of Central Tax of the relevant jurisdiction.
Whenever early recovery is considered appropriate, the jurisdictional Deputy or Assistant Commissioner of Central Tax shall present the reasons for early recovery along with the case to the jurisdictional Principal Commissioner or Commissioner of Central Tax as per the Central Board of Indirect Taxes and Customs.
