This is an update with regard to the recent order issued by NCLT, Mumbai in the miscellaneous application of Videocon Group vs CGST Department in the matter of State Bank of India vs Videocon Industries Limited, wherein section 14 of Insolvency and Bankruptcy Code (‘IBC’) has been invoked prohibiting initiation or continuation of any proceedings by any authority against the debtor during the moratorium period. Such prohibition is imposed to allow the business to be run as a going concern.

Any taxpayer undergoing insolvency proceedings but unable to pay GST and file GST returns electronically can seek directions from the NCLT refraining the GST department from taking any coercive action ( cancellation of GST registration, closure of e- way bill facility, etc.) and continue accepting GST payments and filing GST returns.

Similar direction has been given by NCLT to the GST department in the cases of Hind Tradex Limited vs Lakshmi Precision Screws Limited and TR Ravichandran vs Assistant Commissioner of Central Tax.

For additional information or queries, please feel free to reach our tax partner:

Shampa Bhattacharya (Partner - Indirect Tax)

We trust that you will find our newsletter informative and useful.

Best regards, Corporate Relations Desk
Kochhar & Co.

DISCLAIMER: The material has been prepared for general information purpose only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to the appropriate advisor for any specific matter.