The CBIC Issues Circular for Clarification of the Treatment of Statutory Dues under the GST Laws

On 27th December 2022, the Central Board of Indirect Taxes and Customs (CBIC) issued Circular No. 187/19/2022-GST with reference to Circular No. 134/04/2020-GST issued on 23rd March 2020, where it stated that no coercive action is to be taken against the corporate debtor in respect to the dues of the period prior to the commencement of Corporate Insolvency Resolution Process (CRIP). It further stated that the dues are to be treated as “operational debt” along with the claims to be filed by a proper officer prior to the initiation of NCLT in accordance with the provisions of IBC.

This particular Circular was issued with the subject bearing “Clarification regarding the treatment of statutory dues under GST law in respect of the taxpayers for whom the proceedings have been finalised under Insolvency and Bankruptcy Code, 2016- reg.”.