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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised Representative

Under Section 116(3) of the CGST Act, for how long is a person disqualified from representing others if he has been adjudged an insolvent?

He is disqualified only for the period during which the insolvency continues. Under Section 116(3), dismissal, conviction or misconduct disqualify for all times, but an adjudged insolvent's disqualification ends when the insolvency ends.

  1. AFor all times, as with a person dismissed from Government service
  2. BFor five years from the date of the insolvency order
  3. CFor the period during which the insolvency continuesCorrect
  4. DUntil he is convicted of no further offence

Explanation

Section 116(3)(i) disqualifies persons in clauses (a), (b) and (c) for all times, but clause (ii) limits the disqualification of an adjudged insolvent to the period during which the insolvency continues. The 'all times' option wrongly treats the insolvent like a dismissed or convicted person.

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