223.
A Ltd. is registered
under the GST Act. It has failed to pay the following amounts liable to be paid
under the GST Act
|
GST |
Rs.
16,000 |
|
Amount
of interest |
Rs.
1,000 |
In addition, it is
also liable under the following statues for the amounts indicated against
them:
|
Recovery
of debts due to Banks & Financial Institutions Act, 1993 |
Rs.
3,000 |
|
The
Securitization &
Reconstruction of Financial Assets and the Enforcement of Security
Interest act, 2002 |
Rs.
2,000 |
|
Factories
Act, 1948 |
Rs.
3,000 |
The company has a
property with a realizable value of Rs. 20,000. What legal remedy under section
82 of the GST Act is available to GST dept for recovery of the aforementioned
dues of Rs. 17,000?
Section 82 of the GST Act stipulates that GST dues shall be the first charge on the property of a defaulter, save as otherwise provided, in the Insolvency and bankruptcy Code, 2016. This implies that after the dues, if any, owing under the provisions of the said Act; dues under the GST Act shall have a first charge.
In the light of the aforesaid provisions, in the given case, the dept has the first charge on the property of the defaulter taxable person subject to amounts payable under the following acts:
Thus, the dept will have the first charge of Rs. 17,000 for the recovery of GST dues.