Clarification regarding the treatment of statutory dues under GST law in respect of the taxpayers for whom the proceedings have been finalised under Insolvency and Bankruptcy Code, 2016

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....jya Therige Karyalaya, Gandhinagar, Bengaluru-560009, Dated: 04-01-2023 COMMISSIONER OF COMMERCIAL TAXES CIRCULAR No. GST-21/2022 Subject: Clarification regarding the treatment of statutory dues under GST law in respect of the taxpayers for whom the proceedings have been finalised under Insolvency and Bankruptcy Code, 2016- reg. Attention is invited to Circular No.GST-03/2020 dated 27th April,....

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....) as well under the existing laws and the treatment of such statutory dues under KGST Act and existing laws, after finalization of the proceedings under IBC. 3. In order to ensure uniformity in the implementation of the provisions of the law across the field formations, this office, in exercise of its powers conferred under section 168 of the KGST Act, hereby clarifies as follows. 4.1 Section 84....

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....with whom recovery proceedings is pending; (iii) any recovery proceedings initiated on the basis of the demand served upon him prior to the disposal of such appeal, revision or other proceedings may be continued in relation to the amount so reduced from the stage at which such proceedings stood immediately before such disposal." 4.2 As per Section 84 of KGST Act, if the government dues against ....

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....d on application from any stakeholder of the entity like the firm, creditors, debtors, employees etc. and. passes an order approving the resolution plan. As the proceedings conducted under IBC also adjudicate the government dues pending under the KGST Act or under existing laws against the corporate debtor, the same appear to be covered under the term 'other proceedings' in Section 84 of KGST Act.....