Skip to content

CA Final · Indirect Tax Laws · Demands and Recovery

Mahalaxmi Chemicals Ltd is under liquidation as contemplated in section 88 of the CGST Act. The department finds unpaid tax, interest and penalty due from the company. Under the CGST Rules, 2017, what should the Commissioner do to recover these dues?

The Commissioner should notify the liquidator in FORM GST DRC-24 for recovery of the tax, interest, penalty or other amount due. This is the prescribed procedure for a company under liquidation. DRC-07A and DRC-08A concern dues under existing laws and are not relevant here.

  1. ANotify the liquidator in FORM GST DRC-24 for recovery of the amount dueCorrect
  2. BIssue a summary in FORM GST DRC-07A on the common portal
  3. CUpload a summary in FORM DRC-08A on the common portal
  4. DServe a notice only on the directors in FORM GST DRC-24

Explanation

The rule on recovery from a company in liquidation provides that the Commissioner shall notify the liquidator in FORM GST DRC-24 for tax, interest, penalty or other amounts due. DRC-07A and DRC-08A relate to recovery of dues under existing laws, so they do not apply here.

Did you get it right without looking?

One question tells you little. A timed set on Demands and Recovery shows your real accuracy, how long you take and where you lose marks.

Practise Demands and RecoveryFree diagnostic mock

More Demands and Recovery questions