Section 81 of GST Act: Transfer of property to be void in certain cases

Amended and updated notes on section 81 of CGST Act, 2017. Discussion on provisions and rules related to transfer of property to be void in certain cases.

Amended and updated notes on section 81 of CGST Act, 2017. Detail discussion on provisions and rules related to transfer of property to be void in certain cases.

Chapter XV (Sections 7384) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to demands and recovery. Section 81 of CGST 2017 provides for transfer of property to be void in certain cases.

Recently, we have discussed in detail section 80 (Payment of tax and other amount in instalments) of CGST Act 2017. Today, we learn the provisions of section 81 of Central GST Act 2017.

Section 81 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 81 is 1-7-2017.

Name of ActThe Central Goods and Services Tax Act 2017
Enacted byParliament of India
Administered byCentral Board of Indirect Taxes & Customs
Governing bodyGST Council
Number of Chapters21
Number of Sections174
You are reading:
Chapter No.XV
Chapter NameDemands and Recovery
Section No.81
Section NameTransfer of property to be void in certain cases
Updated 2024 EditionGST Law Book PDF

Section 81 of Central GST – Transfer of property to be void in certain cases1

Section 81 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017.

Where a person, after any amount has become due from him, creates a charge on or parts with the property belonging to him or in his possession by way of sale, mortgage, exchange, or any other mode of transfer whatsoever of any of his properties in favour of any other person with the intention of defrauding the Government revenue, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the said person:

Provided that, such charge or transfer shall not be void if it is made for adequate consideration, in good faith and without notice of the pendency of such proceedings under this Act or without notice of such tax or other sum payable by the said person, or with the previous permission of the proper officer.

  1. Section 81 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎


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