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Under the current central CGST Act wording, the officer’s seven-day deadline to pass a penalty order runs from the date the Section 129(3) notice is served—not from the date the goods or conveyance were detained or seized. Detention or seizure starts a separate seven-day deadline for issuing that notice. Keep the two trigger dates distinct when reviewing a timeline.
Which date starts the penalty-order deadline?
For the central CGST Act wording effective from 1 January 2022, Section 129(3) sets out two consecutive officer-side periods. First, the proper officer must issue a notice specifying the penalty payable within seven days of detention or seizure. Then the officer must pass an order for payment of the penalty within seven days from the date the notice is served.
The statute states: “The proper officer detaining or seizing goods or conveyance shall issue a notice within seven days of such detention or seizure, specifying the penalty payable, and thereafter, pass an order within a period of seven days from the date of service of such notice, for payment of penalty under clause (a) or clause (b) of sub-section (1).” CBIC’s consolidated CGST Act reproduces this wording.
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| Action | Period | What starts the period |
|---|---|---|
| Issue the Section 129(3) notice specifying the penalty payable | Within seven days | Detention or seizure |
| Pass the order for payment of penalty | Within seven days | Service of the notice |
| Pay before the order, under the applicable rule | Within seven days | Issue of the Section 129(3) notice |
The first two periods are in Section 129(3). The third is a separate payment procedure in the CGST Rules; it is not the trigger for the officer’s order deadline.
How to build the timeline
- Identify the detention or seizure date. Record the date and the document or other evidence that establishes it.
- Find the notice’s service date and method. Use the actual service record, not simply the date printed on the notice or the date you received another related document.
- Check the notice-issuance period. Compare the notice issue date with the detention or seizure date; the statutory trigger for this period is detention or seizure.
- Check the order period. Compare the order date with the date the Section 129(3) notice was served. That service date starts the seven-day period for passing the order.
- Check the version and jurisdiction. Confirm the law effective on the relevant event dates and the applicable State or Union Territory GST enactment as well as the central provision.
The central statute identifies the triggering events, but it does not by itself resolve a disputed service date or every question about counting days, including any holiday issue. The cited materials do not establish a definitive last calendar date for an individual case. Check the governing procedural interpretation and the case record before relying on a calculated date.
Payment before the order is a separate process
Under the reviewed CGST Rules, a person who pays the amount referred to in Section 129(1) within seven days of the Section 129(3) notice, but before the order under that subsection, intimates the payment in FORM GST DRC-03. The proper officer then issues FORM GST DRC-05 to conclude proceedings in respect of that notice. This payment window has its own trigger—the notice—and should not be confused with either officer-side deadline.
See the CBIC consolidated CGST Rules for the rule and form procedure. Whether that procedure applies to a particular matter depends on its facts and the law governing it.
Check the applicable version before using the current wording
The CBIC consolidated Act states that the amended Section 129(3) wording was introduced by the Finance Act, 2021 and came into force on 1 January 2022. For a detention or notice from before that date, check the historical statutory text and commencement provisions applicable to the event rather than applying the current wording automatically.
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Older CBIC circular material includes a seven-day reference tied to payment after a detention order, and later circular guidance revised earlier material. That historical reference is not the same as the current Section 129(3) deadline for an order within seven days of notice service. Whenever a seven-day period is mentioned, identify both the event that starts it and the applicable version of the law. CBIC Circular No. 41/15/2018-GST is part of that historical context.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What to compare in a disputed timeline
- The date of detention or seizure and the evidence supporting it.
- The notice’s issue date and the date and mode of its service.
- The dates of the notice and penalty order, matched to the correct statutory trigger.
- The statutory version in force on the relevant dates.
- The central CGST provision and the applicable State or Union Territory GST enactment.
The central sources establish the rules and forms described above; they do not decide every State or Union Territory variation or case-specific dispute about service. For a live proceeding, have the relevant records and jurisdiction reviewed by a qualified GST professional.
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