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CA Final · Indirect Tax Laws · Demands and Recovery

Orient Components Ltd is under liquidation as specified in section 88. GST tax, interest and penalty remain due from it. Under the CGST Rules, what must the Commissioner do to recover the dues?

The Commissioner must notify the liquidator in FORM GST DRC-24 for recovery of the tax, interest, penalty or other amounts due from the company in liquidation. DRC-07A is used for existing-law demand summaries, not for this purpose.

  1. ANotify the liquidator in FORM GST DRC-24 for recovery of the amount dueCorrect
  2. BAttach the personal property of the directors directly without any notice
  3. CUpload a summary of the demand in FORM GST DRC-07A
  4. DWait until the liquidation concludes and then issue a fresh order

Explanation

The rule on recovery from a company in liquidation states that the Commissioner shall notify the liquidator in FORM GST DRC-24 for recovery of any tax, interest, penalty or other amount due. FORM GST DRC-07A relates to uploading summaries of orders under existing laws, so it is wrong here.

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