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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..... BRANCH) Circular No. 15/2022-GST of State Tax, dated March 22, 2023. 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. 134/04/2020-GST, dated 23rd March, 2020, wherein it was clarified that no coercive action ca .....

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..... ry dues under DGST 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, the Pr. Secretary/Commissioner, in exercise of its powers conferred under section 168 of the DGST Act, hereby clarifies as follows. 4.1 Section 84 of the DGST Act reads as follows : 84. Continuati .....

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..... e 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 the DGST Act, if the Government dues against any person under DGST Act are reduced as a result of any appeal, revision or other procee .....

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..... ees, etc., and passes an order approving the resolution plan. As the proceedings conducted under IBC also adjudicate the Government dues pending under the DGST 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 DGST Act. 5. Rule 161 of the Delhi Goods and Services Tax Rules, 2017 prescribes Form GST DRC-25 fo .....

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