Section 84 - Continuation and validation of certain recovery proceedings

Practical example

An appeal reduces tax from 50 lakh to 18 lakh; ledger and recovery certificate are corrected through DRC-25.

Professional alert

Ensure every downstream garnishee/attachment reflects the modified demand.

CGST Rules - rule by rule The rule text layer is paired with a current amendment/control note. Forms and portal labels may change; use the latest official utility. Rule 142 RULE TEXT / CONSOLIDATED BASE LAYER 142. Notice and order for demand of amounts payable under the Act.-(1) The proper officer serves, along with notices under sections 52, 73, 74, 74A, 76, 122 to 125, 127, 129 or 130, an electronic summary in FORM GST DRC-01; a statement under section 73(3), 74(3) or 74A(3) is summarised in FORM GST DRC-02. (1A) Before notice under section 73, 74 or 74A, the proper officer may communicate ascertained tax, interest and penalty in Part A of FORM GST DRC-01A. (2) Pre-notice or other voluntary payment is intimated in FORM GST DRC-03 and acknowledged in FORM GST DRC-04. (2A) Partial payment/ submissions may be made in Part B of FORM GST DRC-01A and the officer may respond in Part C. (2B) A DRC-03 payment made without linkage to an existing demand may be adjusted through FORM GST DRC-03A, except where DRC-05 has already concluded the proceeding. (3) Statutory post-notice payment within the applicable window is intimated in DRC-03 and concluded through DRC-05. (4) Reply is furnished in DRC-06. (5) Order summary is uploaded in DRC-07 and (6) operates as recovery notice. (7) Rectification or withdrawal summary is uploaded in DRC-08. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Current rule includes section 74A, Part C DRC-01A response, DRC-03A demand adjustment, and current payment/conclusion forms. Rule 142A RULE TEXT / CONSOLIDATED BASE LAYER 142A. Procedure for recovery of dues under existing laws.-(1) A summary of an order issued under any of the existing laws creating demand of tax, interest, penalty, fee or any other dues which becomes recoverable consequent to proceedings launched under the existing law before, on or after the appointed day shall, unless recovered under that law, be recovered under the Act and may be uploaded in FORM GST DRC-07A electronically on the common portal for recovery under the Act, and the demand shall be posted in Part II of the Electronic Liability Register in FORM GST PMT-01. (2) Where the demand of an order uploaded under sub-rule (1) is rectified, modified or quashed in any proceedings, including appeal, review or revision, or recovery is made under the existing laws, a summary thereof shall be uploaded on the common portal in FORM GST DRC-08A and Part II of the Electronic Liability Register in FORM GST PMT-01 shall be updated accordingly.

CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Existing-law demand uploaded in DRC-07A and modified/recovered through DRC-08A with liability-register update. Rule 143 RULE TEXT / CONSOLIDATED BASE LAYER 143. Recovery by deduction from any money owed.-Where any amount payable by a person (hereafter referred to in this rule as ―the defaulter‖) to the Government under any of the provisions of the Act or the rules made thereunder is not paid, the proper officer may require, in FORM GST DRC-09, a specified officer to deduct the amount from any money owing to such defaulter in accordance with the provisions of clause

(a) of sub-section (1) of section 79. Explanation.-For the purposes of this rule, ―specified officer‖ shall mean any officer of the Central Government or a State Government or the Government of a Union territory or a local authority, or of a Board or Corporation or a company owned or controlled, wholly or partly, by the Central Government or a State Government or the Government of a Union territory or a local authority. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 DRC-09 recovery by deduction from money owed by Government/specified officer. Rule 144 RULE TEXT / CONSOLIDATED BASE LAYER 144. Recovery by sale of goods under the control of proper officer.- (1) Where any amount due from a defaulter is to be recovered by selling goods belonging to such person in accordance with the provisions of clause (b) of sub-section (1) of section 79, the proper officer shall prepare an inventory and estimate the market value of such goods and proceed to sell only so much of the goods as may be required for recovering the amount payable along with the administrative expenditure incurred on the recovery process.

(2) The said goods shall be sold through a process of auction, including e-auction, for which a notice shall be issued in FORM GST DRC-10 clearly indicating the goods to be sold and the purpose of sale. (3) The last day for submission of bid or the date of auction shall not be earlier than fifteen days from the date of issue of the notice referred to in sub-rule (2): Provided that where the goods are of perishable or hazardous nature or where the expenses of keeping them in custody are likely to exceed their value, the proper officer may sell them forthwith. (4) The proper officer may specify the amount of pre-bid deposit to be furnished in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be. (5) The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of auction. On payment of the full bid amount, the proper officer shall transfer the possession of the said goods to the successful bidder and issue a certificate in FORM GST DRC-12. (6) Where the defaulter pays the amount under recovery, including any expenses incurred on the process of recovery, before the issue of the notice under sub-rule (2), the proper officer shall cancel the process of auction and release the goods. (7) The

proper officer shall cancel the process and proceed for re-auction where no bid is received or the auction is considered to be non-competitive due to lack of adequate participation or due to low bids. Inserted vide Notf no. 60/2018 - CT dt. 30.10.2018 CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 DRC-10 auction of goods under officer control; valuation, notice, bid, payment, certificate and re-auction safeguards. Rule 145 RULE TEXT / CONSOLIDATED BASE LAYER 145. Recovery from a third person.- (1) The proper officer may serve upon a person referred to in clause (c) of sub-section (1) of section 79 (hereafter referred to in this rule as ―the third person‖), a notice in FORM GST DRC-13 directing him to deposit the amount specified in the notice. (2) Where the third person makes the payment of the amount specified in the notice issued under sub-rule (1), the proper officer shall issue a certificate in FORM GST DRC-14 to the third person clearly indicating the details of the liability so discharged. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Third-party garnishee recovery through DRC-13 and discharge certificate DRC-14. Rule 146 RULE TEXT / CONSOLIDATED BASE LAYER 146. Recovery through execution of a decree, etc.- Where any amount is payable to the defaulter in the execution of a decree of a civil court for the payment of money or for sale in the enforcement of a mortgage or charge, the proper officer shall send a request in FORM GST DRC- 15 to the said court and the court shall, subject to the provisions of the Code of Civil Procedure, 1908 (5 of 1908), execute the attached decree, and credit the net proceeds for settlement of the amount recoverable. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Recovery by request to civil court executing a decree in favour of defaulter.

Rule 147 RULE TEXT / CONSOLIDATED BASE LAYER 147. Recovery by sale of movable or immovable property.-(1) The proper officer shall prepare a list of movable and immovable property belonging to the defaulter, estimate their value as per the prevalent market price and issue an order of attachment or distraint and a notice for sale in FORM GST DRC- 16 prohibiting any transaction with regard to such movable and immovable property as may be required for the recovery of the amount due: Provided that the attachment of any property in a debt not secured by a negotiable instrument, a share in a corporation, or other movable property not in the possession of the defaulter except for property deposited in, or in the custody of any Court, shall be attached in the manner provided in rule 151. (2) The proper officer shall send a copy of the order of attachment or distraint to the concerned Revenue Authority or Transport Authority or any such Authority to place encumbrance on the said movable or immovable property, which shall be removed only on the written instructions from the proper officer to that effect. (3) Where the property subject to the attachment or distraint under sub-rule (1) is- (a) an immovable property, the order of attachment or distraint shall be affixed on the said property and shall remain affixed till the confirmation of sale; (b) a movable property, the proper officer shall seize the said property in accordance with the provisions of chapter XIV of the Act and the custody of the said property shall either be taken by the proper officer himself or an officer authorised by him. (4) The property attached or distrained shall be sold through auction, including e-auction, for which a notice shall be issued in FORM GST DRC- 17 clearly indicating the property to be sold and the purpose of sale. (5) Notwithstanding anything contained in the provision of this Chapter, where the property to be sold is a negotiable instrument or a share in a corporation, the proper officer may, instead of selling it by public auction, sell such instrument or a share through a broker and the said broker shall deposit to the Government so much of the proceeds of such sale, reduced by his commission, as may be required for the discharge of the amount under recovery and pay the amount remaining, if any, to the owner of such instrument or a share. (6) The proper officer may specify the amount of pre-bid deposit to be furnished in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders or, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be. (7) The last day for the submission of the bid or the date of the auction shall not be earlier than fifteen days from the date of issue of the notice referred to in sub-rule (4): Provided that where the goods are of perishable or hazardous nature or where the expenses of keeping them in custody are likely to exceed their value, the proper officer may sell them forthwith. (8) Where any claim is preferred or any objection is raised with regard to the attachment or distraint of any property on the ground that such property is not liable to such attachment or distraint, the proper officer shall investigate the claim or objection and may postpone the sale for such time as he may deem fit. (9) The person making the claim or objection must adduce evidence to show that on the date of the order issued under sub-rule (1) he had some interest in, or was in possession of, the property in question under attachment or distraint. (10) Where, upon investigation, the proper officer is satisfied that, for the reason stated in the claim or objection, such property was not, on the said date, in the possession of the defaulter or of any other person on his behalf or that, being in the possession of the defaulter on the said date, it was in his possession, not on his own account or as his own property, but on account of or in trust for any other person, or partly on his own account and partly on account of some other person, the proper officer shall make an order releasing the property, wholly or to such extent as he thinks fit, from attachment or distraint. (11) Where the proper officer is satisfied that the property was, on the said date, in the possession of the defaulter as his own property and not on account of any other person, or was in the possession of some other person in trust for him, or in the occupancy of a tenant or other person paying rent to him, the proper officer shall reject the claim and proceed with the process of sale through auction. (12) The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of such notice and after the said payment is made, he shall issue a certificate in FORM GST DRC-12 specifying the details of the property, date of transfer, the details of the bidder and the amount paid and upon issuance of such certificate, the rights, title and interest

in the property shall be deemed to be transferred to such bidder: Providedthat where the highest bid is made by more than one person and one of them is a co- owner of the property, he shall be deemed to be the successful bidder. (13) Any amount, including stamp duty, tax or fee payable in respect of the transfer of the property specified in sub-rule (12), shall be paid to the Government by the person to whom the title in such property is transferred. (14) Where the defaulter pays the amount under recovery, including any expenses incurred on the process of recovery, before the issue of the notice under sub-rule (4), the proper officer shall cancel the process of auction and release the goods. (15) The proper officer shall cancel the process and proceed for re-auction where no bid is received or the auction is considered to be non-competitive due to lack of adequate participation or due to low bids. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Attachment and auction of movable/immovable property through DRC-16 onward, with proclamation, deposits, title certificate and cancellation rules. Rule 148 RULE TEXT / CONSOLIDATED BASE LAYER 148. Prohibition against bidding or purchase by officer.- No officer or other person having any duty to perform in connection with any sale under the provisions of this Chapter shall, either directly or indirectly, bid for, acquire or attempt to acquire any interest in the property sold. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Officer/person involved in sale cannot bid or acquire property directly or indirectly. Rule 149 RULE TEXT / CONSOLIDATED BASE LAYER 149. Prohibition against sale on holidays.-No sale under the rules under the provision of this chapter shall take place on a Sunday or other general holidays recognized by the Government or on any day which has been notified by the Government to be a holiday for the area in which the sale is to take place. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Sale restrictions on Sundays and public holidays subject to lawful urgency exceptions.

Rule 150 RULE TEXT / CONSOLIDATED BASE LAYER 150. Assistance by police.-The proper officer may seek such assistance from the officer-in- charge of the jurisdictional police station as may be necessary in the discharge of his duties and the said officer-in-charge shall depute sufficient number of police officers for providing such assistance. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Police assistance may be sought for recovery action. Rule 151 RULE TEXT / CONSOLIDATED BASE LAYER 151. Attachment of debts and shares, etc.- (1) A debt not secured by a negotiable instrument, a share in a corporation, or other movable property not in the possession of the defaulter except for property deposited in, or in the custody of any court shall be attached by a written order in FORM GST DRC-16prohibiting.- (a) in the case of a debt, the creditor from recovering the debt and the debtor from making payment thereof until the receipt of a further order from the proper officer; (b) in the case of a share, the person in whose name the share may be standing from transferring the same or receiving any dividend thereon; (c) in the case of any other movable property, the person in possession of the same from giving it to the defaulter. (2) A copy of such order shall be affixed on some conspicuous part of the office of the proper officer, and another copy shall be sent, in the case of debt, to the debtor, and in the case of shares, to the registered address of the corporation and in the case of other movable property, to the person in possession of the same. (3) A debtor, prohibited under clause (a) of sub-rule (1), may pay the amount of his debt to the proper officer, and such payment shall be deemed as paid to the defaulter. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Attachment of debts, shares and securities follows prescribed prohibitory orders and payment/transfer mechanics. Rule 152 RULE TEXT / CONSOLIDATED BASE LAYER 152. Attachment of property in custody of courts or Public Officer.-Where the property to be attached is in the custody of any court or Public Officer, the proper officer shall send the order of attachment to such court or officer, requesting that such property, and any interest or dividend becoming payable thereon, may be held till the recovery of the amount payable.

CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Property in custody of court/public officer is attached by notice to that custodian subject to court questions. Rule 153 RULE TEXT / CONSOLIDATED BASE LAYER 153. Attachment of interest in partnership.- (1) Where the property to be attached consists of an interest of the defaulter, being a partner, in the partnership property, the proper officer may make an order charging the share of such partner in the partnership property and profits with payment of the amount due under the certificate, and may, by the same or subsequent order, appoint a receiver of the share of such partner in the profits, whether already declared or accruing, and of any other money which may become due to him in respect of the partnership, and direct accounts and enquiries and make an order for the sale of such interest or such other order as the circumstances of the case may require. (2) The other partners shall be at liberty at any time to redeem the interest charged or, in the case of a sale being directed, to purchase the same. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Partnership interest attachment permits charging order and appointment/receiver directions. Rule 154 RULE TEXT / CONSOLIDATED BASE LAYER 154. Disposal of proceeds of sale of goods and movable or immovable property.- The amounts so realised from the sale of goods, movable or immovable property, for the recovery of dues from a defaulter shall,- (a) first, be appropriated against the administrative cost of the recovery process; (b) next, be appropriated against the amount to be recovered; (c) next, be appropriated against any other amount due from the defaulter under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017 and the rules made thereunder; and (d) any balance, be paid to the defaulter. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Sale proceeds apply first to administrative cost, then recovery amount; balance returns to owner, subject to other Government claims. Rule 155 RULE TEXT / CONSOLIDATED BASE LAYER

155. Recovery through land revenue authority.-Where an amount is to be recovered in accordance with the provisions of clause (e) of sub-section (1) of section 79, the proper officer shall send a certificate to the Collector or Deputy Commissioner of the district or any other officer authorised in this behalf in FORM GST DRC-18 to recover from the person concerned, the amount specified in the certificate as if it were an arrear of land revenue. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 DRC-18 certificate enables land-revenue recovery by Collector/deputy. Rule 156 RULE TEXT / CONSOLIDATED BASE LAYER 156. Recovery through court.-Where an amount is to be recovered as if it were a fine imposed under the Code of Criminal Procedure, 1973, the proper officer shall make an application before the appropriate Magistrate in accordance with the provisions of clause (f) of sub-section (1) of section 79 in FORM GST DRC- 19 to recover from the person concerned, the amount specified thereunder as if it were a fine imposed by him. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 DRC-19 application enables magistrate recovery as fine. Rule 157 RULE TEXT / CONSOLIDATED BASE LAYER 157. Recovery from surety.-Where any person has become surety for the amount due by the defaulter, he may be proceeded against under this Chapter as if he were the defaulter. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Surety may be proceeded against as defaulter. Rule 158 RULE TEXT / CONSOLIDATED BASE LAYER

158. Payment of tax and other amounts in instalments.-(1) On an application filed electronically by a taxable person, in FORM GST DRC- 20, seeking extension of time for the payment of taxes or any amount due under the Act or for allowing payment of such taxes or amount in instalments in accordance with the provisions of section 80, the Commissioner shall call for a report from the jurisdictional officer about the financial ability of the taxable person to pay the said amount. (2) Upon consideration of the request of the taxable person and the report of the jurisdictional officer, the Commissioner may issue an order in FORM GST DRC- 21 allowing the taxable person further time to make payment and/or to pay the amount in such monthly instalments, not exceeding twenty-four, as he may deem fit. (3) The facility referred to in sub-rule (2) shall not be allowed where- (a) the taxable person has already defaulted on the payment of any amount under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017, for which the recovery process is on;

(b) the taxable person has not been allowed to make payment in instalments in the preceding financial year under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017; (c) the amount for which instalment facility is sought is less than twenty-five thousand rupees. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 DRC-20 instalment application; Commissioner may seek report and issue DRC-21, subject to exclusions and default acceleration. Rule 159 RULE TEXT / CONSOLIDATED BASE LAYER 159. Provisional attachment of property.-(1) Where the Commissioner decides to attach any property, including bank account in accordance with the provisions of section 83, he shall pass an order in FORM GST DRC-22 to that effect mentioning therein, the details of property which is attached. (2) The Commissioner shall send a copy of the order of attachment to the concerned Revenue Authority or Transport Authority or any such Authority to place encumbrance on the said movable or immovable property, which shall be removed only on the written instructions from the Commissioner to that effect. (3) Where the property attached is of perishable or hazardous nature, and if the taxable person pays an amount equivalent to the market price of such property or the amount that is or may become payable by the taxable person, whichever is lower, then such property shall be released forthwith, by an order in FORM GST DRC-23, on proof of payment. (4) Where the taxable person fails to pay the amount referred to in sub-rule (3) in respect of the said property of perishable or hazardous nature, the Commissioner may dispose of such property and the amount realized thereby shall be adjusted against the tax, interest, penalty, fee or any other amount payable by the taxable person. (5) Any person whose property is attached may, within seven days of the attachment under sub-rule (1), file an objection to the effect that the property attached was or is not liable to attachment, and the Commissioner may, after affording an opportunity of being heard to the person filing the objection, release the said property by an order in FORM GST DRC- 23. (6) The Commissioner may, upon being satisfied that the property was, or is no longer liable for attachment, release such property by issuing an order in FORM GST DRC- 23. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026

DRC-22 provisional attachment; DRC-22A objection, hearing and DRC-23 release; one-year statutory cessation remains. Rule 161 RULE TEXT / CONSOLIDATED BASE LAYER 161. Continuation of certain recovery proceedings.-The order for the reduction or enhancement of any demand under section 84 shall be issued in FORM GST DRC- 25. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 DRC-25 records continuation/reduction/enhancement effects under section 84. Rule 164 RULE TEXT / CONSOLIDATED BASE LAYER 164. Procedure and conditions for closure of proceedings under section 128A in respect of demands issued under section 73.- (1) Any person who is eligible for waiver of interest, or penalty, or both in respect of a notice or a statement mentioned in clause (a) of sub-section (1) of section 128A, may file an application electronically in FORM GST SPL-01 on the common portal, providing the details of the said notice or the statement, as the case may be, along with the details of the payments made in FORM GST DRC-03 towards the tax demanded.

(2) Any person who is eligible for waiver of interest, or penalty, or both, in respect of orders mentioned in clauses (b) and (c) of sub-section (1) of section 128A, may file an application electronically in FORM GST SPL 02 on the common portal, providing the details of the said order, along with the details of the payments made towards the tax demanded:

Provided that the payment towards such tax demanded shall be made only by crediting the amount in the electronic liability register against the debit entry created by the said order:

Provided further that if the payment towards such tax demanded has been made through FORM GST DRC-03, an application in FORM GST DRC-03A, as prescribed in sub-rule (2B) of rule 142, shall be filed by the said person for credit of the said amount in the Electronic Liability Register against the debit entry created for the said demand, before filing the application

in FORM GST SPL 02.

(3) Where the notice or statement or order mentioned in sub-section (1) of section 128A includes demand of tax, partially on account of erroneous refund and partially for other reasons, an application under sub-rule (1) or sub-rule (2) may be filed only after payment of the full amount of tax demanded in the said notice or statement or order, on or before the date notified under the said sub-section.

(4) Where the notice or statement or order mentioned in sub-section (1) of section 128A includes demand of tax, partially for the period mentioned in the said sub-section and partially for the period other than that mentioned in the said sub-section, an application under sub-rule (1) or sub- rule (2) may be filed only after payment of the full amount of tax related to period mentioned in the said sub- section and demanded in the said notice or statement or order, on or before the date notified under the said sub-section.

Explanation.-No refund shall be available for any tax, interest and penalty which has already been discharged for the entire period, prior to commencement of the Central Goods and Services Tax (Second Amendment) Rules, 2025, where a notice, statement or order mentioned in section 128A(1) includes a demand partly for the period mentioned in that sub-section and partly for another period.

(5) The amount payable under sub-rule (1) or sub-rule (2) shall be the amount that remains payable, after deducting the amount not payable in accordance with sub-section (5) or sub-section (6) of section 16, from the amount payable in terms of the notice or statement or order under section 73, as the case may be.

(6) Any person who wishes to file an application under sub-rule (1) or sub-rule (2), may do so within a period of three months from the date notified under sub-section (1) of section 128A:

Provided that where an application in FORM GST SPL-02 is to be filed in cases referred to in the first proviso to sub-section (1) of section 128A, the time limit for filing the said application shall be six months from the date of communication of the order of the proper officer redetermining such tax under section 73.

(7) The application under sub-rule (1) or sub-rule (2) shall be accompanied by documents evidencing withdrawal of appeal or writ petition, if any, filed before any Appellate Authority, or Tribunal or Court, as the case may be, to establish that the applicant is eligible for the waiver of interest or penalty or both, in terms of section 128A:

Provided that where the applicant has filed an application for withdrawal of an appeal or writ petition filed before the Appellate Authority or Appellate Tribunal or a court, as the case may be,

but the order for withdrawal has not been issued by the concerned authority till the date of filing of the application under sub-rule (1) or sub-rule (2), the applicant shall upload the copy of such application or document filed for withdrawal of the said appeal or writ petition along with the application under sub-rule (1) or sub-rule (2), and shall upload the copy of the order for withdrawal of the said appeal or writ petition on the common portal, within one month of the issuance of the said order for withdrawal by the concerned authority.

Provided further that where the notice, statement or order mentioned in section 128A(1) includes a demand partly for the period mentioned in that sub-section and partly for another period, the applicant, instead of withdrawing the appeal, shall intimate the Appellate Authority or Appellate Tribunal that the appeal is not pursued for the covered period; the relevant authority shall pass such order for the remaining period as it considers just and proper.

Explanation.-For removal of doubt, the appeal application shall be deemed withdrawn to the extent of that intimation for the period from 1 July 2017 to 31 March 2020 or part thereof, for the purpose of section 128A(3).

(8) Where the proper officer is of the view that the application made in FORM GST SPL-01 or FORM GST SPL-02 is liable to be rejected as not being eligible for waiver of interest, or penalty, or both, as per section 128A, he shall issue a notice on the common portal to the applicant in FORM GST SPL-03 within three months from the date of receipt of the said application and shall also give the applicant an opportunity of being heard.

(9) On receiving the notice under sub-rule (8), the applicant may file a reply to the said notice on the common portal in FORM GST SPL-04, within a period of one month from the date of receipt of the said notice.

(10) If the proper officer is satisfied that the applicant is eligible for waiver of interest and penalty as per section 128A, he shall issue an order in FORM GST SPL-05 on the common portal accepting the said application and concluding the proceedings under section 128A.

(11) In cases where the order in FORM GST SPL-05 is issued by the proper officer under sub-rule

(10).-

(a) in respect of an application filed in FORM GST SPL-01 pertaining to a notice or statement referred to in clause (a) of sub-section (1) of section 128A, the summary of order in FORM GST DRC-07 as per sub-rule (5) of rule 142 shall not be required to be issued by the proper officer, in respect of the said notice or statement;

(b) in respect of an application filed in FORM GST SPL-02 pertaining to an order referred to in clause (b) or clause (c) of sub-section (1) of section 128A, the liability

created in the part II of Electronic Liability Register, shall be modified accordingly.

(12) If the proper officer is not satisfied with the reply of the applicant, the proper officer shall issue an order in FORM GST SPL-07 rejecting the said application.

(13) (a) In cases where notice in FORM GST SPL-03 has not been issued, the proper officer shall issue the order under sub-rule (10) within a period of three months from the date of receipt of the application in FORM GST SPL-01 or FORM GST SPL-02, as the case may be.

(b) In cases where notice in FORM GST SPL-03 has been issued, the proper officer shall issue the order in sub-rule (10) or sub-rule (12) within a period of three months from the date of receipt of reply of the applicant in FORM GST SPL-04, or within a period of four months from the date of issuance of notice in FORM GST SPL-03 where no reply is received from the applicant.

Explanation.- For the purposes of this sub-rule, in cases referred to in the proviso to sub-rule (7), the time period from the date of filing of the application under sub-rule (1) or sub-rule (2) till the date of submission of the order for withdrawal of the appeal or the writ, as the case may be, shall not be included while calculating the time period under clause (a) or clause (b) of this sub-rule.

(14) If no order is issued by the proper officer within the time limit specified in sub-rule (13), then the application in FORM GST SPL-01 or FORM GST SPL-02, as the case may be, shall be deemed to be approved and the proceedings shall be deemed to be concluded.

(15) (a) In cases where no appeal is filed against the order in FORM GST SPL-07 within the time period specified in sub-section (1) of section 107, the original appeal, if any, filed by the applicant against the order mentioned in clause (b) or clause (c) of sub-section (1) of section 128A, and withdrawn for filing the application in FORM GST SPL-02 in accordance with sub-section (3) of section 128A, shall be restored.

(b) In cases where an appeal is filed against the order in FORM GST SPL-07 for rejection of application for waiver of interest, or penalty, or both, if-

(i) the appellate authority has held that the proper officer has wrongly rejected the application for waiver of interest, or penalty, or both, in FORM GST SPL-07, the said appellate authority shall pass an order in FORM GST SPL-06 on the common portal accepting the said application and concluding the proceedings under section 128A; or

(ii) the appellate authority has held that the proper officer has rightly rejected the

application for waiver of interest, or penalty, or both, in FORM GST SPL-07, the original appeal, if any, filed by the applicant against the order mentioned in clause

(b) or clause (c) of sub-section (1) of section 128A, and withdrawn for filing the application in FORM GST SPL-02 in accordance with sub-section (3) of section 128A, shall be restored, subject to condition that the applicant files an undertaking electronically on the portal in FORM GST SPL-08, within a period of three months from the date of issuance of the order by the appellate authority in FORM GST APL-04, that he has neither filed nor intends to file any appeal against the said order of the Appellate Authority.

(16) In cases where the taxpayer is required to pay an additional amount of tax liability as per the second proviso to sub-section (1) of section 128A, and such additional payment is not made within the time limit specified in the said proviso, the waiver of interest, or penalty, or both, under the said section as per the order issued in FORM GST SPL-05 or FORM GST SPL-06, if any, shall become void.

(17) In cases where the taxpayer is required to pay any amount of interest, or penalty, or both, in respect of any demand pertaining to erroneous refund or on account of demand pertaining to the period other than the period mentioned in sub-section (1) of section 128A, and the details of such amount have been mentioned in FORM GST SPL-05 or FORM GST SPL-06, the applicant shall pay the said amount of interest, or penalty, or both, within a period of three months from the date of issuance of the order in FORM GST SPL-05 or FORM GST SPL-06, as the case may be, and where the said amount is not paid within the said time period, the waiver of interest, or penalty, or both, under section 128A as per the order issued in FORM GST SPL-05 or FORM GST SPL-06, shall become void.

Explanation.- For the purposes of this rule, the proper officer for issuance of order under this rule,-

(a) in cases where the application for waiver of interest, or penalty, or both is made with respect to a notice or statement mentioned in clause (a) of sub-section (1) of section 128A, shall be the proper officer for issuance of order as per section 73; and

(b) in cases where the application for waiver of interest, or penalty, or both, is made with respect to an order mentioned in clause (b) or clause (c) of sub-section (1) of section 128A, shall be the proper officer referred to in section 79 of the Act.”.

CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Current rule 164 includes Notification 11/2025 mixed-period relief mechanics, no-refund explanation and partial appeal-intimation route; read with Circular 248/05/2025-GST.

Notifications, circulars and implementation controls Instrument Date/status Why it matters Finance (No. 2) Act, 2024 / commencement 1 November 2024 Inserted section 74A framework for FY 2024-25 onward and related changes. Notification 20/2024- Central Tax 8 October 2024; key provisions from 1 November 2024 Added section 74A references, DRC-03A and rule 164 waiver procedure. Notification 11/2025- Central Tax 27 March 2025 Amended rule 164 for mixed-period cases, no- refund rule and partial appeal intimation. Circular 248/05/2025-GST 27 March 2025 Clarifies section 128A/rule 164 applications, mixed demands and appeal treatment. Circular 254/11/2025-GST 2025 Proper-officer assignment for section 74A, section 75(2), section 122 and rule 142(1A). Circular 224/18/2024-GST 7 November 2024 Recovery protection for intended GSTAT appeals during transition, subject to deposit and procedure. Notification 13/2022- Central Tax 5 July 2022 Extended specified section 73 limitation for FY 2017-18 and excluded COVID period for refund limitation. Reading rule: A circular guides administration but cannot override the Act, Rules or Gazette. Always read the principal instrument with amendments and effective-date clauses.

CA / finance / professional case studies Case 1: Wrong demand section Facts: FY 2024-25 notice is issued under section 73. Question: Is this correct? Analysis: Section 74A is the demand provision for FY 2024-25 onward. Raise jurisdiction and limitation grounds while replying on merits without prejudice. References: s.74A Case 2: Fraud label without facts Facts: Notice repeats “suppression” but identifies no deliberate act. Question: How should reply be framed? Analysis: Challenge ingredients, evidence and extended penalty; provide full reconciliation and limitation analysis. References: s.74/s.74A(5) Case 3: Beyond-notice order Facts: Order uses a new related-party valuation theory. Question: Can it stand? Analysis: Section 75 bars an order exceeding notice amount or relying on unstated grounds; natural justice challenge arises. References: s.75(7)

Case 4: DRC-03 not linked Facts: Tax was paid before order but liability ledger still shows full demand. Question: What route applies? Analysis: Use DRC-03A under rule 142(2B) where conditions are met to link payment to the demand. References: r.142(2B) Case 5: Instalments for return tax Facts: Taxpayer asks to pay GSTR-3B self-assessed tax in instalments. Question: Is section 80 available? Analysis: No. Section 80 excludes self-assessed return liability; consider other lawful cash-flow measures. References: s.80; r.158 Case 6: Provisional attachment Facts: All bank accounts are attached. Question: What response? Analysis: File rule 159 objection with ownership, necessity, proportionality and business-continuity evidence; seek release/limited operation. References: s.83; r.159 Case 7: Mixed-period section 128A demand Facts: Order covers FY 2019-20 and 2020-21. Question: Must entire appeal be withdrawn? Analysis: Current rule 164 permits payment/intimation mechanics for the covered period without abandoning the remaining-period appeal, subject to exact conditions. References: s.128A; r.164; Cir.248/2025

Case 8: Early recovery Facts: Officer begins recovery before three months. Question: When permissible? Analysis: Only where proper officer records reasons in writing that shorter period is expedient in revenue interest; challenge absence/irrationality. References: s.78

Finin2min Q&A 1. Which section applies to FY 2024-25?