The 48th GST Council met today under the Chairmanship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman via virtual mode in New Delhi.
The meeting was also attended by Union Minister of State for Finance Shri Pankaj Choudhary besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States/ UTs.
The GST Council has inter-alia made many recommendations relating to changes in GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST.
“Circular to be issued for clarifying the issue of treatment of statutory dues under GST law in respect of the taxpayers for whom the proceedings have been finalized under Insolvency and Bankruptcy Code 2016. Rule 161 of CGST Rules, 2017 and FORM GST DRC-25 also to be amended for facilitating the same”, the press release after the Meeting stated.
Rule 161 of the Central Goods and Services Tax Rules presently include provisions for Continuation of ‘certain recovery proceedings’.
Currently, “the order for the reduction or enhancement of any demand under Section 84 shall be issued in FORM GST DRC-25” is the only entry in the CGST Rule 161. The inclusion of treatment of recovery proceedings of an insolvent entity will make the procedure to recover the GST dues clear. Form GST DRC-25 will also be amended accordingly to accommodate the amendments to be made to Rule 161.
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