This circular provides detailed guidelines for recovery of outstanding GST dues in cases where the first appellate authority has confirmed the demand, but the taxpayer is unable to file an appeal before the GST Appellate Tribunal, as it is not yet operational.

It clarifies that taxpayers intending to appeal before the Tribunal can pay the required pre-deposit under Section 112(8) of the CGST Act using the Electronic Liability Register (Part II) on the GST portal. Upon such payment and submission of a declaration or undertaking to file an appeal once the Tribunal is functional, recovery of the remaining demand shall be stayed under Section 112(9).

The circular further states that taxpayers who have inadvertently paid pre-deposits via FORM GST DRC-03 may have such payments adjusted against pre-deposit liability by filing an application in FORM GST DRC-03A, as introduced by Notification No. 12/2024-CT dated 10th July 2024. Until this online functionality is enabled, officers are directed not to initiate recovery where proof of such payment is furnished.

If taxpayers neither make the pre-deposit nor submit the undertaking to appeal, recovery proceedings under Sections 78 and 79 of the CGST Act may be initiated.