GST Recovery Started? Stop by Paying Pre-deposit and Giving Declaration

Aarika | Last updated: 06 June 2025

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Quick Summary

If you've received a GST demand notice, you can temporarily halt recovery proceedings by following a specific process. This involves making a mandatory pre-deposit of a portion of the disputed amount via the GST portal. Following this, you must submit a declaration to your jurisdictional officer indicating your intent to appeal once the GST Appellate Tribunal (GSTAT) is operational. Completing these steps will trigger a stay on the recovery of the remaining GST demand until your appeal is resolved.

If you have received a GST demand, you normally have the option to appeal it. You can wish to appeal against it in the Appellate Tribunal (GSTAT) and can temporarily halt the recovery of the outstanding amount by following these steps:

GST Recovery: Halt Demand with Pre-deposit and Declaration

Pay the Pre-Deposit

As per Section 112(8) of the GST Act, you must make a pre-deposit of a certain percentage of the disputed amount. This is a mandatory step to initiate the appeal process.

To make the payment, you need to go -> the Payment section of the GST portal and select Liability Register. Here, you can complete the payment process.

Submit a Declaration

After making the pre-deposit, you are required to prepare a declaration stating your intention to file an appeal.

This declaration should be addressed to the jurisdictional officer (the tax officer who is responsible for your case) stating your intention to file an appeal once the GSTAT becomes operational.

Stay of Recovery

Once you have completed the pre-deposit and submitted the declaration, the recovery of the remaining GST demand will be stayed. This is covered u/s 112(9) of the GST Act.

This means that the tax authorities cannot take any further action to recover the outstanding amount until your appeal is decided.

FAQ :

Yes, you can temporarily halt the recovery of a GST demand by making a pre-deposit and submitting a declaration to your jurisdictional officer.

A pre-deposit is a mandatory payment of a certain percentage of the disputed GST amount, required to initiate the appeal process as per Section 112(8) of the GST Act.

You can make the pre-deposit payment by navigating to the Payment section on the GST portal and selecting the Liability Register.

You need to prepare and submit a declaration to your jurisdictional officer stating your intention to file an appeal once the GST Appellate Tribunal (GSTAT) becomes operational.

Once both steps are completed, the recovery of the remaining GST demand will be stayed under Section 112(9) of the GST Act, meaning authorities cannot recover the outstanding amount until your appeal is decided.