The CBIC issued Instruction No. 01/2024-GST on 30th May 2024, outlining guidelines for initiating recovery proceedings under the CGST Act, 2017. Recovery proceedings can commence before the usual three-month period in exceptional cases, with proper officer authorization and recorded reasons. The jurisdictional Deputy or Assistant Commissioner can initiate recovery, but early recovery cases must be referred to the jurisdictional Principal Commissioner or Commissioner for examination and specific directions. Early recovery may be warranted in cases of potential revenue loss, business closure, financial instability, or impending insolvency, based on credible evidence and balanced against the ease of doing business. Field formations must ensure uniform implementation of these guidelines, pursuing early recovery only when justified by specific circumstances.
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