GST Registration Must For Liquidator, Rules AAR: Know Why

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

Read More: PVC Raincoats Attract 18% GST; Not Classified as Textile Apparel, Rules Authority: AAR

Mariya Paliwala
Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

GST Dept. Can’t Adjudicate SCN After 6 Years Citing Absence Of Statutory Provisions: Bombay High Court

The Bombay High Court has held that the GST department cannot adjudicate…

Allahabad High Court Slams GST Dept. For Not Verifying Seller’s Tax Details on Portal Before Drawing Adverse Inference Against Purchaser

The Allahabad High Court has slammed the GST department for not verifying…

CBIC Clarifies On GST Rates & Classification Of Pepper, Raisins, Popcorn, AAC Blocks

The Central Board of Indirect Taxes and Customs (CBIC) has clarified on…

Circular Issued By Central Govt. Not Applicable To State GST Unless Adopted By Making Declaration: Orissa High Court

The Orissa High Court has held that the circular issued by central…