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CA Final · Indirect Tax Laws · Demands and Recovery

Sundaram Foods Ltd has gone into liquidation as contemplated under section 88 of the CGST Act. The department wants to recover tax and interest due from the company. As per the CGST Rules, what must the Commissioner do?

The Commissioner must notify the liquidator in FORM GST DRC-24 about the tax, interest, penalty or other amount due from the company in liquidation. This is the prescribed route for a company under liquidation under section 88; FORM GST DRC-07A is for demands under existing laws.

  1. AIssue a notice to the liquidator in FORM GST DRC-24 for recovery of the amount dueCorrect
  2. BAttach the personal property of the directors without involving the liquidator
  3. CUpload a summary of order in FORM GST DRC-07A on the portal
  4. DWait until liquidation ends and then issue a demand notice to the company

Explanation

The Rules provide that where the company is under liquidation as specified in section 88, the Commissioner notifies the liquidator for recovery of the tax, interest, penalty or other amount due in FORM GST DRC-24. FORM GST DRC-07A relates to summary of orders under existing laws, so it is not the relevant form here.

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