TAG Tax

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 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 have 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) at shampa.bhattacharya@kochhar.com