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Issues: (i) Whether the sale of assets of a company in liquidation by the liquidator amounts to a supply of goods and/or services within the meaning of supply under the GST law. (ii) Whether the liquidator is required to obtain GST registration for conducting such sale.
Issue (i): Whether the sale of assets of a company in liquidation by the liquidator amounts to a supply of goods and/or services within the meaning of supply under the GST law.
Analysis: The sale of assets during liquidation was treated as a taxable transaction falling within the ambit of supply under the GST law. The Authority proceeded on the basis that the liquidator, acting for the company in liquidation, effects the sale of assets and that such activity is covered by the statutory concept of supply.
Conclusion: Yes. The sale of assets of the company in liquidation by the liquidator constitutes a supply of goods and/or services or both within the meaning of supply.
Issue (ii): Whether the liquidator is required to obtain GST registration for conducting such sale.
Analysis: The Authority relied on the special registration framework applicable to corporate debtors under the GST notifications and held that the liquidator, as an insolvency professional appointed by the NCLT, must obtain registration to discharge GST obligations arising from the liquidation sales. The statutory scheme was read with the relevant notifications issued for corporate insolvency proceedings.
Conclusion: Yes. The liquidator is required to obtain GST registration in terms of the GST provisions and the applicable notifications.
Final Conclusion: The ruling answers both referred questions against the applicant and confirms GST liability and registration requirements for liquidation sales effected by the NCLT-appointed liquidator.
Ratio Decidendi: Sale of assets by a liquidator of a corporate debtor in liquidation is a taxable supply, and the liquidator must obtain GST registration to carry out such taxable supplies.
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