Guidelines for initiation of recovery proceedings before three months from the date of service of demand order

Early tax recovery: Principal Commissioner must record written reasons before ordering payment within a shorter period to protect revenue.

The instruction clarifies that recovery proceedings generally commence only after three months from service of a GST demand order, but a Principal Commissioner/Commissioner may, for reasons recorded in writing and where expedient in the interest of revenue, require payment within a shorter period. The jurisdictional Deputy or Assistant Commissioner referring a case for early action must provide justifications; the Principal Commissioner/Commissioner must record specific reasons based on credible evidence of revenue risk and issue written directions for early payment. Failure to comply permits recovery by the Deputy or Assistant Commissioner under the prescribed enforcement procedure.