CBIC SOP for recovery of GST dues from companies undergoing liquidation under the Insolvency and Bankruptcy Code (IBC).

GST and Customs authorities have been classified as operational creditors and are required to submit their claims against corporate debtors when the corporate insolvency and resolution process is initiated. However, CBIC observed, that there is an inordinate delay in filing claims by the Customs and GST authorities, which results in their claims not being admitted once a resolution plan is approved.

A corporate debtor undergoing insolvency is liable to furnish its GST returns, pay tax, and meet all other compliance as per the GST law during the corporate insolvency process. Tax officers can’t make any claims after the winding up order of a company is passed.

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