Circular No. 187/19/2022 -GST dated 27 December 2022

Key Pointers – 

• In case the government dues against any person under CGST Act are reduced as a result of any appeal, revision or other proceedings in respect of such government dues, then as per Section 84 of the CGST Act, an intimation for such reduction of government dues has to be given by the Commissioner to such person and to the appropriate authority with whom the recovery proceedings are pending. Further, recovery proceedings can be continued in relation to such reduced amount of government dues.
• As the proceedings conducted under IBC also adjudicate the government dues pending under the CGST Act or under existing laws against the corporate debtor, the same appear to be covered under the term ‘other proceedings’ in Section 84 of CGST Act.
• Rule 161 of Central Goods and Services Tax Rules, 2017 prescribes FORM GST DRC-25 for issuing intimation for such reduction of demand specified under section 84 of CGST Act.
• In case the demand for recovery has been confirmed then a summary will be issued in FORM GST DRC-07/DRC 07A against the corporate debtor, and where the proceedings have been finalized then the jurisdictional Commissioner shall issue an intimation in FORM GST DRC-25 reducing such demand