Sale of Assets of Company-in-Liquidation by Liquidator Constitutes Supply of Goods/Services Under GST | AAR

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  • Last Updated on 17 April, 2025

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GST on Liquidator Asset Sale

Case Details: Maheshwary Ispat Ltd., In re - [2025] 173 taxmann.com 289 (AAR-WEST BENGAL)

Judiciary and Counsel Details

  • Dr. Tanisha Dutta & Joyjit Banik, Members
  • Santanu Brahma, Liquidator for the Appellant.

Facts of the Case

The company was undergoing liquidation, with the appointed Liquidator acting under the orders of the Hon’ble NCLT, Kolkata Bench. The Liquidator intended to sell the company’s assets to discharge the company’s outstanding liabilities as part of the liquidation process. In this context, the applicant sought an advance ruling from the West Bengal Authority for Advance Ruling (AAR) under Section 97 of the CGST Act and West Bengal GST Act, to clarify whether the sale of such assets would constitute a supply of goods or services under GST.

AAR Held

The Hon’ble West Bengal AAR held that the sale of assets by the Liquidator, in the process of liquidation, constitutes a supply of goods and/or services within the meaning of Section 7 of the CGST Act. The AAR clarified that even though the company is under liquidation, the act of selling its assets is considered a taxable supply under GST, as it falls within the ambit of the statutory definition of ‘supply’ under the law.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied