Goods & Service Tax (GST) 17 August 2026
GST Recovery Ruling
The Karnataka High Court has quashed DRC-13 recovery notices issued against BKR Services for GST dues of a proprietary concern operated by a deceased proprietor, stating that GST recovery cannot be fastened on a separate corporate entity for dues of a deceased proprietor, the court remanded the proceedings and the tax authorities are required to follow the proper procedure for recovery of tax dues
The Karnataka High Court has made a significant ruling regarding GST recovery. *GST recovery* cannot be fastened on a separate corporate entity for dues of a deceased proprietor. The court quashed the *DRC-13 recovery notices* issued against BKR Services for GST dues of a proprietary concern operated by a deceased proprietor. The key points of the ruling are:
- The tax authorities are required to follow the proper procedure for recovery of tax dues.
- The GST recovery cannot be fastened on a separate corporate entity for dues of a deceased proprietor.
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