If Liquidator appointed by NCLT is already Registered as a distinct person it should continue to remain Registered till Liability Ceases: AAR [Read Order]

The West Bengal Authority of Advance Ruling (AAR) ruled that the sale of the assets of the applicant by an NCLT appointed liquidator is a supply of goods by the liquidator, who 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 March 21, 2020, she should continue to remain registered till her liability ceases under section 29 (1) (c) of the GST Act.

The National Company Law Tribunal (NCLT), Kolkata Bench, passed an order declaring the applicant a corporate debtor under the provisions of the Insolvency and Bankruptcy Code, 2016 IBC) and appointed a liquidator.

The applicant sought the advance ruling on the 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.

The authority consisting of members Susmita Bhattacharya and Parthsarthi Dey ruled that the sale of the assets of the applicant by an NCLT appointed liquidator is a supply of goods by the liquidator, who 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 March 21, 2020, she should continue to remain registered till her liability ceases under section 29 (1) (c) of the GST Act.

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