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CMA Intermediate · Direct and Indirect Taxation · Charge of Tax including Reverse Charge

Section 82 of the CGST Act, 2017 gives the Government's claim priority 'notwithstanding anything to the contrary contained in any law for the time being in force'. Which statutory law is specifically saved from this overriding effect?

The Insolvency and Bankruptcy Code, 2016 is the law saved from the overriding effect of Section 82. The section applies despite any other law, except as the Code provides otherwise, so GST dues are a first charge subject to that Code.

  1. AThe Indian Contract Act, 1872
  2. BThe Insolvency and Bankruptcy Code, 2016Correct
  3. CThe Transfer of Property Act, 1882
  4. DThe Companies Act, 2013

Explanation

The section opens with a non-obstante clause but says 'save as otherwise provided in the Insolvency and Bankruptcy Code, 2016'. No other law is named as an exception, so the other three do not override the first charge by virtue of this text.

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