TRANSFER OF PROPERTY TO BE VOID IN CERTAIN CASES - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

8. TRANSFER OF PROPERTY TO BE VOID IN CERTAIN CASES (I) As per Section 81 of the CGST Act, 2017, if the defaulting taxpayer/person creates a charge on or parts with the property belonging to him or in his possession by way of sale, mortgage, exchange, or any other mode of transfer of any of his properties in favour of any other person with the intention of defrauding the Government revenue due from him, then such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the said defaulting taxpayer/person. (II) Such charge or transfer shall not be void if it is made for adequate consideration, in good faith and without notice of the pendency of such proceedings under CGST Act, 2017 or without notice of such tax or other sum payable or with the previous permission of the Proper Officer, viz., the Additional or Joint Commissioner.