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CA Final · Indirect Tax Laws · Demands and Recovery

Bharat Steels Ltd is under liquidation, and the department wishes to recover tax and interest due under the GST Act. Under the CGST Rules as given, what must the Commissioner do?

The Commissioner must notify the liquidator about the amount due, which covers tax, interest, penalty or any other amount, in FORM GST DRC-24. The notice goes to the liquidator, not to directors, and there is no need to wait for liquidation to end.

  1. ANotify the liquidator for recovery of the amount due in FORM GST DRC-24Correct
  2. BIssue a demand notice to each director personally in FORM GST DRC-24
  3. CUpload a summary of the order in FORM GST DRC-07A
  4. DWait for the liquidation to conclude and then issue a fresh notice

Explanation

The rule on recovery from a company in liquidation, which refers to section 88, requires the Commissioner to notify the liquidator for recovery of tax, interest, penalty or other amounts due in FORM GST DRC-24. FORM DRC-07A relates to summaries of orders under existing laws, so it does not apply here.

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