What does section 79 regulate?

It regulates recovery of tax. Read the exact text, conditions, exceptions and transaction date together.

Which subordinate law should be checked?

No direct CGST Rule has been listed in this repository. Notifications, circulars, forms and the corresponding SGST/UTGST layer may also apply.

What evidence should be retained?

Preserve the contract or transaction record, invoice or form, portal acknowledgement, payment/ledger evidence, correspondence, legal working and the official source version used.

Can portal behaviour override the statute?

No. Portal functionality is operational evidence; legal entitlement and liability remain controlled by the Act, Rules, notifications and binding decisions.

Section 73, 74 or 74A — which GST demand provision applies?

Fix the tax period, provision, allegation, limitation/service position and computation before deciding whether to pay, reply or appeal.

How long can GST reopen an old tax period?

Apply section 79 to the exact facts and period, then verify the linked delegated law and official implementation material before concluding.

What should I check first in a GST show-cause notice?

Start with the transaction/tax period and the exact wording of section 79; then open the linked Rules, forms, notifications/circulars and State/UT layer.

Can GST recovery start while I am preparing an appeal?

Identify the order, service date, forum, limitation and statutory payment/pre-deposit requirements before filing.

Section 79 - Recovery of tax

Reviewed by CA Nikhil Gupta and Kajri Singh · Last reviewed 30 August 2026

Chapter XV - Demands and Recovery

ACTIVE

Official source: The controlling wording and amendment notes are maintained by India Code and CBIC. Open consolidated Act PDF.

Finin2min Summary - Section in 2 Minutes

Lists coercive recovery modes including deduction, third-party garnishee, detention/sale of goods, property sale, land-revenue and magistrate recovery. Rules 143-157 prescribe forms and sale process. Government officers may recover SGST/UTGST dues and vice versa under statutory coordination. Third-party notices create direct compliance obligations.

Provision position

Present in current consolidated Act

CGST chapter

Chapter XV — Demands and Recovery

Legal source control

India Code + CBIC official repositories

Law checked

27 July 2026

How to use this page: Application remains transaction-date sensitive: check commencement, amendment history, Rules, notifications and State/UT overlay before reliance. The official consolidated Act controls the statutory wording; the Finin2min layers explain how to apply and evidence it.

Why Section 79 matters

Section 79 (Recovery of tax) is the section-level control point within Chapter XV — Demands and Recovery. Demand and recovery provisions decide how alleged short payment, wrong credit, erroneous refund and recovery are quantified, notified, adjudicated and collected.

Current-law and amendment control

validation 1 — controlling consolidated Act

India Code — Central Goods and Services Tax Act, 2017. Used for the current chapter/section inventory and consolidated provision status.

validation 2 — independent official cross-check

CBIC Tax Information Portal. Use the Act HTML/PDF and amendment history together with current notifications/circulars.

Transaction-date rule: Never treat today’s consolidated wording, a portal screen or an enacted-but-uncommenced amendment as proof of the law that applied on another date. Fix the relevant tax period first.

Official statutory text

The authoritative provision, footnotes and amendment notes are maintained in the official consolidated Act. This analytical page does not re-typeset amendment markers into the running statutory sentence.

Official-source reference reviewed on 2026-07-28. Apply the version and commencement position relevant to the transaction period.

Clause-by-clause / paragraph-wise decode

Section–Rule–Form–Notification–Circular bridge

No direct Rule certified in Repository module. Check notifications, circulars, forms and corresponding State law.

The mapping is a legal concordance, not a round-robin related-link list. It is limited to instruments listed in this repository.

Practical example

A bank receives DRC-13 and remits the specified amount; DRC-14 evidences discharge.

Professional alert

Recovery must follow an enforceable demand and correct ledger; challenge duplicate/incorrect posting promptly.

Finin2min decision path

Fix the financial year and issue before choosing the demand provision.
Separate tax, interest, penalty and factual allegations.
Check notice limitation, service and relied-upon material.
Reconcile the demand to books/returns and prepare the legal response.
Track payment options, order, recovery protection and appeal.

Practical case studies

Case 1 — Section-specific application — A taxpayer encounters an issue involving recovery of tax. The working paper should identify the exact subsection/proviso, linked Rule/Form/instrument, tax period and evidence before recording the conclusion.

Case 2 — A notice concerns FY 2023-24. Determine whether section 73 or 74 applies based on the allegation; do not use section 74A merely because it is the newer provision.

Case 3 — A notice concerns FY 2024-25 onward. Start with section 74A and then apply the general procedural provisions.

Accounting, ERP & portal touchpoints

Demand management should freeze notice-wise tax-period data, disputed amounts, payments, interest and appeal status with document links.

Control: keep the legal conclusion separate from system configuration; document every tax-code/master change and its effective date.

Notice, litigation & evidence risk

Wrong period mapping or missed limitation/service points can materially affect the case. Preserve the notice, relied-upon documents, reply, hearing record and order.

Evidence hierarchy: source transaction → books/ERP → statutory return/form → portal acknowledgement → legal working → correspondence/order.

Judicial position — how to read precedent

Start with binding Supreme Court authority, then the jurisdictional High Court, other High Courts and GSTAT where applicable. AAR/AAAR rulings are fact- and jurisdiction-sensitive and should not be presented as universal law. Always check whether a decision has been stayed, reviewed, distinguished or overtaken by amendment.

Open the Finin2min provision citator · Open the connected GST case-law module

Common mistakes to avoid

Using section 73/74 for FY 2024-25 onward without checking section 74A.
Assuming every mismatch implies fraud/suppression.
Paying or appealing without reconciling the demand computation.
Ignoring recovery timelines after an order.

Questions professionals actually ask

Section 73, 74 or 74A — which GST demand provision applies?: Fix the tax period, provision, allegation, limitation/service position and computation before deciding whether to pay, reply or appeal.
How long can GST reopen an old tax period?: Apply section 79 to the exact facts and period, then verify the linked delegated law and official implementation material before concluding.
What should I check first in a GST show-cause notice?: Start with the transaction/tax period and the exact wording of section 79; then open the linked Rules, forms, notifications/circulars and State/UT layer.
Can GST recovery start while I am preparing an appeal?: Identify the order, service date, forum, limitation and statutory payment/pre-deposit requirements before filing.

Related law and practical resources

Chapter XV guide Practical GST pathways CGST Rules GST Forms Notifications Circulars Provision citator Case law GST Portal controls State/UT overlays

Finin2min takeaway: Section 79 should never be applied alone. Read the exact provision, the connected Rules/forms/instruments, the transaction date, the State/UT overlay and the binding judicial position together.

Implementation checklist

Fix the transaction, taxable period and jurisdiction.
Read every subsection, proviso, explanation and omission marker.
Open the mapped Rule, form, notification and circular.
Test State/UT variation and portal version.
Preserve evidence, approvals, working papers and acknowledgements.
Record the conclusion, assumptions, source date and reviewer.

Evidence and retention checklist

Contract, purchase order, invoice or underlying transaction document.
Registration, return, ledger, challan and portal acknowledgement.
Official Act/Rule/notification version used and effective date.
Internal tax position paper, computation and management approval.
Correspondence, notices, replies, orders and appeal papers where applicable.

Practical Q&A

What does section 79 regulate?: It regulates recovery of tax. Read the exact text, conditions, exceptions and transaction date together.
Which subordinate law should be checked?: No direct CGST Rule has been listed in this repository. Notifications, circulars, forms and the corresponding SGST/UTGST layer may also apply.
What evidence should be retained?: Preserve the contract or transaction record, invoice or form, portal acknowledgement, payment/ledger evidence, correspondence, legal working and the official source version used.
Can portal behaviour override the statute?: No. Portal functionality is operational evidence; legal entitlement and liability remain controlled by the Act, Rules, notifications and binding decisions.

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