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GST · Notices & appealsRecovery of GST demand: Section 79 and available remedies
Once a GST demand is confirmed, the department can recover it from your bank account, customers, goods and property. Here is how Section 79 recovery works, when it can start, and the remedies available – stay, appeal, instalments and writs.
Recovery provisions in GST are strong. Section 78 sets the timeline; Section 79 lists recovery modes; Section 80 allows instalments; Section 83 permits provisional attachment during proceedings.
When recovery starts
- Amount payable under an order must be paid within 3 months of service of the order.
- If not paid, recovery proceedings begin.
- The officer may recover earlier if satisfied that it is expedient in the interest of revenue, recording reasons.
Recovery modes under Section 79
| Mode | Form / action |
|---|---|
| Deduct from any money owed to the taxpayer by the department (refunds) | Adjustment |
| Detain and sell goods under the control of the officer | Detention / auction |
| Require any person (bank, debtor, customer) to pay amounts due to the taxpayer | DRC-13 (garnishee); DRC-14 certificate |
| Distrain and sell movable or immovable property | DRC-16 (attachment), auction |
| Certificate to District Collector for recovery as arrears of land revenue | DRC-18 |
| Recovery through Magistrate | Application |
| Recovery from another State's GSTIN of the same person | Inter-State recovery |
Provisional attachment – Section 83
During proceedings (audit, inspection, SCN), the Commissioner can provisionally attach property including bank accounts (DRC-22) if necessary to protect revenue. It lapses after one year. The taxpayer can file objections within 7 days (Rule 159(5)) and seek release. Courts have held that this is a drastic power to be used only with tangible material (Radha Krishan Industries, Supreme Court, 2021).
Worked example
Example: Shree Ganesh Traders has a confirmed demand of ₹9,00,000 from an order dated 15 May 2026. No appeal was filed. On 20 August 2026, its bank receives DRC-13 and freezes ₹9,00,000.
Options:
- Appeal with condonation: the 3-month limit expired on 15 August; with the one-month extension, file by 15 September 2026 with 10% pre-deposit (₹90,000) and a condonation application. Once admitted, request withdrawal of DRC-13 citing deemed stay.
- Instalments: apply in DRC-20 for up to 24 instalments if the demand is accepted.
- Rectification: if there are apparent errors, apply under Section 161 – but it does not stop recovery by itself.
- Writ petition: where recovery violates law (e.g. before 3 months without reasons), approach the High Court.
Instalments under Section 80
- Application in DRC-20; order in DRC-21.
- Up to 24 monthly instalments.
- Interest under Section 50 applies.
- Not available if the taxpayer has defaulted on earlier instalments, or for amounts below the notified limit, or for self-assessed tax in returns (as per Rule 158).
- Default in any instalment makes the balance immediately recoverable.
Protecting your business
- Never ignore an order – calendar the 3-month appeal deadline.
- Keep the demand ledger reconciled; get stays recorded in the portal after appeals.
- Respond quickly to DRC-13 by showing proof of appeal and pre-deposit.
- For provisional attachment, file objections within 7 days.
Common mistakes
- Assuming recovery cannot happen while "talking to the officer".
- Not updating the portal about appeals, leading to automatic adjustments.
- Paying under protest without recording it.
- Missing the 7-day window for Section 83 objections.
Key takeaway
GST recovery can freeze bank accounts and attach property. The best protection is timely appeal with pre-deposit, which stays recovery, or instalments where the demand is accepted. Our GST litigation team handles recovery notices, stay applications and appeals.
Official references
Provisions discussed (summaries in our Law Library):
- CGST Act, 2017 – Section 79: Recovery of tax
Official sources to verify the current text, notifications and circulars:
Frequently asked questions
When can the department start recovery of a GST demand?
Generally after three months from the date of service of the order (Section 78). Earlier recovery is possible if the officer records reasons that it is in the interest of revenue.
Can the department attach my bank account?
Yes. Under Section 79(1)(c), the officer can issue DRC-13 to a bank (or any debtor) directing payment of the amount due from money held for you.
Does filing an appeal stop recovery?
Yes. Once the appeal is filed with the required pre-deposit, recovery of the balance is deemed stayed (Section 107(7) / 112(9)).
Can I pay a GST demand in instalments?
Yes. Under Section 80, the Commissioner may allow payment in up to 24 monthly instalments on application (DRC-20), subject to conditions and interest.
Can the department recover from my customers?
Yes. Through DRC-13, customers or debtors can be directed to pay amounts owed to you directly to the government.
Can recovery be made during the 3-month appeal period?
Normally recovery starts after three months, unless the officer records reasons for earlier recovery in the interest of revenue.
How do I get a bank attachment released after filing appeal?
Submit proof of appeal and pre-deposit to the officer and request withdrawal of DRC-13, citing deemed stay under Section 107(7).
This article is general information on the law as on 10 November 2026, written for educational purposes. It is not professional advice for your case. Section numbers under the Income-tax Act, 2025 should be confirmed with the official section mapping on the Income Tax Department website before use in filings.
Have a tax, GST or business question?
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