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Under the current central CGST Act wording, the proper officer has seven days from service of a Section 129(3) notice to pass the penalty-payment order. That is a separate deadline from the officer’s seven days to issue the notice, which runs from detention or seizure. Keep those trigger dates distinct when checking a timeline.
Which date starts the penalty-order deadline?
The penalty-order period starts on the date the Section 129(3) notice is served—not on the date the goods or conveyance were detained or seized. Section 129(3) of the central CGST Act provides that the proper officer must issue a notice specifying the penalty within seven days of detention or seizure, and “thereafter” pass an order within seven days from service of that notice. The [CBIC consolidated CGST Act](https://www.cbic.gov.in/resources//htdocs-cbec/gst Acts/CGST Act, 2017.pdf) reproduces this wording.
| Action | Deadline | Trigger date |
|---|---|---|
| Issue the Section 129(3) notice specifying the penalty | Within seven days | Detention or seizure |
| Pass the order for payment of penalty | Within seven days | Service of the notice |
| Make qualifying payment before the order | Within seven days | Issue of the Section 129(3) notice |
The first two periods are officer-side deadlines under Section 129(3). The payment period is a separate process under the CGST Rules.
How to check a specific timeline
- Identify the detention or seizure date. Use the relevant record or document showing when the goods or conveyance were detained or seized.
- Find the notice’s service date and evidence of service. The order deadline runs from service, so the date the notice was issued is not a substitute for the service date.
- Compare the notice date with the detention or seizure date. The notice-issuance period is measured from detention or seizure.
- Compare the order date with the service date. The penalty-order period is measured from service of the notice.
- Check the law applicable on the event dates and in the jurisdiction. Confirm the statutory version and the relevant State or Union Territory GST enactment as well as the central provision.
The statute identifies the triggering events, but the materials cited here do not settle a disputed service date, the effect of a holiday, or every detailed day-counting question. Do not treat a calculated calendar date as definitive without checking the service record and the applicable procedural interpretation.
When did the current wording take effect?
The CBIC consolidated Act states that the amended Section 129(3) wording was introduced by the Finance Act, 2021 and came into force on January 1, 2022. For a detention or notice from before that date, check the historical statutory text and commencement provisions that applied at the time; do not automatically apply the current wording to an earlier event.
Older CBIC circular material refers to a seven-day period tied to payment after a detention order, and later circular guidance revised earlier material. That historical period is not the current Section 129(3) deadline for the officer to pass an order within seven days of notice service. When a source mentions “seven days,” identify the event that starts the period and the version of the law it addresses. See the CBIC circular alongside the current statutory text.
Payment before the penalty order
The CGST Rules provide a separate route when the person pays the amount referred to in Section 129(1) within seven days of the Section 129(3) notice and before the officer passes the order. The person 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 mechanism does not change the officer’s separate deadline to pass the order. The workflow is set out in the CBIC CGST Rules.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What to verify before relying on the calculation
- Detention or seizure: the date and the document supporting it.
- Notice: its issue date, the date it was actually served, and evidence showing how service occurred.
- Order: its date, compared with the notice service date.
- Applicable law: the version in force on the relevant dates and the applicable State or Union Territory provision.
- Payment, if relevant: whether it was made within the separate period and before the order, with the required DRC-03 intimation and DRC-05 action.
The central statutory rule and central rules described here do not establish the outcome for every State or Union Territory amendment or for a case with disputed service or other contested facts. In a live proceeding, have the dates and documents checked against the law applicable to that jurisdiction.
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