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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....ry 02, 2023. (File No. 05/GST-II) 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 issued vide No. 795/GST-2, dated 29th May, 2020, wherein it was clarified that no coercive action can be taken against the corpo....

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....gs under IBC. 3. In order to ensure uniformity in the implementation of the provisions of the law across the field formations, the Commissioner of State Tax, in exercise of its powers conferred under section 168 of the HGST Act, hereby clarifies as follows. 4.1 Section 84 of the HGST Act reads as follows : "84. Continuation and validation of certain recovery proceedings.--Where any notice of d....

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.... 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 the HGST Act, if the Government dues against any person under HGST Act are reduced as a result of any appeal, revision or other proceedings in respect of such Government dues, then an intimat....

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....n plan. As the proceedings conducted under IBC also adjudicate the Government dues pending under the HGST Act or under existing laws against the corporate debtor, the same appear to be covered under the term 'other proceedings' in section 84 of the HGST Act. 5. Rule 161 of the Haryana Goods and Services Tax Rules, 2017 prescribes Form GST DRC-25 for issuing intimation for such reduction of demand....