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CA Final · Indirect Tax Laws · Demands and Recovery

Orion Chemicals Ltd. is under liquidation as contemplated in section 88 of the CGST Act. The department wants to recover tax and interest dues from it. Under the CGST Rules, what must the Commissioner do?

The Commissioner must notify the liquidator in FORM GST DRC-24 for recovery of the tax, interest, penalty or other amounts due. The other forms mentioned concern dues under existing laws and are not the prescribed route for a company in liquidation.

  1. AIssue a notice to the liquidator in FORM GST DRC-24 for recovery of the amount dueCorrect
  2. BAttach the company's bank accounts through FORM GST DRC-07A
  3. CFile a claim directly with the Registrar of Companies in FORM GST DRC-08A
  4. DWait until the liquidation concludes and then issue a demand to the directors

Explanation

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

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