GST Registration Mandatory for IRP Liquidator Conducting Sales for Liquidating Company: AAR [Read Order]
The sales conducted by the IRP Liquidator on behalf of the liquidating company constitutes the provisions of “Supply” under the CGST Act, 2017
![GST Registration Mandatory for IRP Liquidator Conducting Sales for Liquidating Company: AAR [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/03/GST-Registration-Mandatory-IRP-Liquidator-Conducting-Sales-Liquidating-Company-AAR-taxscan.jpg "GST Registration Mandatory for IRP Liquidator Conducting Sales for Liquidating Company: AAR [Read Order]")
In a notable ruling, the West Bengal Authority for Advance Ruling (AAR) has declared that an Insolvency Resolution Professional (IRP) or liquidator appointed by the NCLT is required to obtain GST registration before conducting sales of assets belonging to a liquidating company. The AAR ruling came against an application filed by Maheshwary Ispat Limited, a company undergoing...
In a notable ruling, the West Bengal Authority for Advance Ruling (AAR) has declared that an Insolvency Resolution Professional (IRP) or liquidator appointed by the NCLT is required to obtain GST registration before conducting sales of assets belonging to a liquidating company.
The AAR ruling came against an application filed by Maheshwary Ispat Limited, a company undergoing liquidation, seeking clarity on whether the liquidator Santanu Brahma, who was appointed by the National Company Law Tribunal (NCLT) on December 19, 2023. was obligated to obtain GST registration in order to dispose of company assets.
Maheshwary Ispat Limited was originally subject to winding-up proceedings before the Calcutta High Court following a petition by Tata Capital Ltd. in 2011. The matter was later transferred to the National Company Law Tribunal (NCLT), Kolkata, which on December 19, 2023, appointed Mr. Santanu Brahma as the liquidator.
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Following transfer of the assets of the company, the Liquidator had published E-auction sale notice for "Unexpired Lease of the Office Premises of the CD situated at City Centre 1, Kolkata 700064" in "The Telegraph Calcutta edition in English, 'Business Standard Kolkata edition in English and 'Aajkaal Kolkata in Bengali which was successfully bid by M/s. Star Turn Exim Pvt. Ltd.
Liquidator Santanu Brahma queried before the AAR to determine whether he was required to register for GST before carrying out asset sales, given that the company itself was unregistered at the time of liquidation. The Liquidator also raised concerns of technical difficulties in registering for GST since the GST portal requires a minimum of two promoters/partners, whereas a company under liquidation has no active directors or promoters.
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The two-member bench comprising Tanisha Dutta, Joint Commissioner, CGST & CX, and Joyjit Banik, Additional Commissioner, SGST observed that as per Section 24 of the CGST Act, 2017, a liquidator handling the sale of assets of a corporate debtor qualifies as a taxable entity and is mandatorily required to obtain GST registration.
The Bench referred to the precedent by the same AAR in the case of Mansi Oils and Grains Pvt. Ltd. (2020) where it was held that the sale of the assets of the applicant by NCLT appointed liquidator is a supply of goods by the liquidator, who is mandatorily required to take GST registration to conduct such sale.
To Read the full text of the Order CLICK HERE
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