The West Bengal Authority of Advance Ruling (AAR) has ruled that the GST registration is must for liquidator as any sale of assets of the company Maheshwary Ispat Limited which is in liquidation, done by the Liquidator of the company results in a supply of goods and/or services or both within the meaning of “supply” as defined under section 7 of the CGST Act 2017.
The bench of Dr Tanisha Dutta and Joyjit Banik has observed that the Liquidator who is an insolvency professional being appointed by the NCLT Kolkata Bench as a liquidator, is required to obtain GST registration in terms of Section 24 of the CGST Act, 2017 and WBGST Act 2017 read together with the Notification no. 11/2020-Central Tax dated 21-March-2020 and Notification no. 439-F.T dated 03-April 2020, issued under the WBGST Act, 2017.
The applicant, Maheshwary Ispat Limited is a company which is in liquidation and Mr. Santanu Brahma has been appointed as Liquidator of the Company by NCLT, Kolkata vide order dated 19.12.2023.
The applicant sought the advance ruling on the issue whether any sale of assets of the company Maheshwary Ispat Limited which is in liquidation, done by the Liquidator of the company results in a supply of goods and/or services or both within the meaning of “supply” as defined under section 7 of the CGST Act 2017.
If the answer is in affirmative, is the Liquidator appointed by Honb’le NCLT Kolkata Bench, required to obtain GST registration in terms of Section 25 of the CGST Act 2017 and WBGST Act 2017.
The AAR observed that the Government, has notified those registered persons, who are corporate debtors under the provisions of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), undergoing the corporate insolvency resolution process and the management of whose affairs are being undertaken by interim resolution professionals (IRP) or resolution professionals (RP), as the class of persons who shall follow special procedure as prescribed therein, from the date of the appointment of the IRP/RP till the period they undergo the corporate insolvency resolution process.
The AAR added that the liquidators shall, with effect from the date of appointment of IRP / RP, be treated as a distinct person of the corporate debtor, and shall be liable to take a new registration in each of the States or Union territories where the corporate debtor was registered earlier, within thirty days of the appointment of the IRP/RP.
The AAR ruled that the sale of the assets of the applicant by NCLT appointed liquidator is a supply of goods by the liquidator, who is required to take registration under section 24 of the GST Act.
Ruling Details
Applicant Name: Maheshwary Ispat Limited
Date: 27/02/2025
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