Under the central CGST Act wording effective from 1 January 2022, the officer’s seven-day deadline to pass a penalty order runs from service of the section 129(3) notice—not from the date goods or a conveyance were detained or seized. Detention or seizure starts a separate seven-day period for issuing that notice.
Which event starts the penalty-order deadline?
Section 129(3) sets two consecutive officer-side deadlines. First, the proper officer must issue a notice specifying the penalty within seven days of detention or seizure. Then the officer must pass the order for payment of penalty within seven days from the date the notice is served. The CGST Act therefore distinguishes the date the notice is issued from the date it is served; the second date starts the order clock.
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The central provision, as reproduced in the CBIC consolidated CGST Act, states that the officer “shall issue a notice within seven days of such detention or seizure” and “thereafter, pass an order within a period of seven days from the date of service of such notice.”
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| Action or event | Seven-day period runs from | What the period concerns |
|---|---|---|
| Officer issues the section 129(3) notice specifying the penalty | Detention or seizure | Time to issue the notice |
| Officer passes the penalty-payment order | Service of the section 129(3) notice | Time to pass the order |
| Person makes qualifying payment before the order | Notice issued under section 129(3) | Separate payment procedure under the CGST Rules |
How to build the timeline
Use the documents in the particular case to identify each trigger date. Do not treat the detention date, notice date, service date and order date as interchangeable.
- Identify detention or seizure. Record the date and the document that establishes when the goods or conveyance were detained or seized.
- Check the notice. Record its date and whether it specifies the penalty payable. Compare its issue timing with the seven-day period that begins with detention or seizure.
- Establish service. Record when and how the notice was actually served, using the service record. This date—not merely the date printed on or issued with the notice—is the trigger for the order period.
- Check the order date. Compare the date the proper officer passed the order with the seven-day period beginning on service of the notice.
- Confirm the applicable law. Check the version in force on the relevant dates and the applicable State or Union Territory GST enactment as well as the central provision.
Do not calculate a final calendar date from the deadline alone
The statutory text identifies the triggering events and the seven-day periods, but it does not by itself resolve a disputed service date, holiday treatment or the detailed day-counting rule for a particular case. The reviewed central materials therefore do not establish a definitive last calendar date for every timeline. Where the service record or day-counting treatment matters, verify the governing procedural interpretation and case documents before asserting that an order was timely or late.
Payment before the officer passes an order
The CGST Rules provide a separate route where a person pays the amount referred to in section 129(1) within seven days of the section 129(3) notice and before the officer passes an order under that subsection. The person intimates 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 period is distinct from the officer’s period to pass an order. See the CBIC CGST Rules.
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Which version applies?
The CBIC consolidated Act states that the amended section 129(3) wording was introduced by the Finance Act, 2021 and brought into force on 1 January 2022. For detention or notices 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 refers to a seven-day period tied to payment after a detention order, and later circular guidance revised earlier material. That reference concerns a different trigger from the current amended section 129(3) deadline for passing an order after service of notice. When reading a circular or older discussion, identify exactly which event starts the seven days; the CBIC circular should not be read as changing the trigger stated in the current statutory text.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Central law and State or Union Territory proceedings
The timeline described here is the central CGST Act rule reflected in the cited CBIC materials. A specific State or Union Territory GST enactment may require separate checking, and the sources cited here do not establish the outcome under every local amendment or in every case involving disputed service. For an actual detention or penalty proceeding, compare the applicable enactment with the notices, proof of service and order in the record.
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