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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.... 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. F.17 (134-Pt.-II) ACCT/GST/2017/5598 dated 04th April, 2020, wherein it was clarified that no coercive action can be taken against the corporate debtor with re....

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....ws, 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, the Board, in exercise of its powers conferred under section 168(1) of the RGST Act, hereby clarifies as follows. 4.1 Section 84 of RGST Act reads as follows: "Section 84 - Continuation and validation of certain recovery proceedin....

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....d 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 RGST Act, if the government dues against any person under RGST Act are reduced as a result of any appeal, revision or other proceedings in respect of su....

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.... an order approving the resolution plan. As the proceedings conducted under IBC also adjudicate the government dues pending under the RGST Act or under existing laws against the corporate debtor, the same appear to be covered under the term 'other proceedings' in Section 84 of RGST Act. 5. Rule 161 of Rajasthan Goods and Services Tax Rules, 2017 prescribes FORM GST DRC-25 for issuing intimation f....