Mansi Oils & Grains Pvt. Ltd. – 2020 (38) G.S.T.L. 626 (A.A.R. – GST – West Bengal)

Liquidator is required to take compulsory registration under section 24 of CGST Act,2017.

Facts- NCLT has appointed Smt. Rachna Jhunjhunwala as liquidator, having IP Registration No. IBBI/IPA-001/IP-P00389/2017-18/10707. After her appointment as liquidator all powers of directors in decision making are vested in Ms. Jhunjhunwala under Section 34(2) of IBC. The plant and machinery, office equipment and furniture of the applicant were auctioned as per regulation laid down under IBC.

Issue: whether any sale done by the liquidator of the assets of the applicant results in a supply of goods and/or services or both within the meaning of “supply” as defined under Section 7 of the GST Act. If the answer is affirmative, then what will be the rate of GST. The applicant also wants to know whether the liquidator needs to get registered under the GST Act.

Held- In order of AAR it was held that Schedule-II of the GST Act says, where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a supply of goods by the person. Liquidator is required to take registration under Section 24 of the GST Act. If she is already registered as a distinct person of the corporate debtor in terms of Notification No. 11/2020-Central Tax, dated 21-3-2020, she should continue to remain registered till her liability ceases under Section 29(1)(c) of the GST Act. They are broad categories classifiable under different HSN and taxable under appropriate Sl. Nos. of the Schedules under Notification No. 1/2017-C.T. (Rate), dated 28-6-2017.

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