Govt Authority Can't Seek Status Of Secured Operational Creditor Based On Dues Arising From HPGST Or CGST Acts: NCLAT

The NCLAT (National Company Law Appellate Tribunal) has ruled that a government authority cannot seek the status of a "secured operational creditor" based on dues arising from the HPGST (Himachal Pradesh Goods and Services Tax) or CGST (Central Goods and Services Tax) Acts. This significant decision clarifies the hierarchy of creditors in insolvency proceedings under the IBC (Insolvency and Bankruptcy Code). The NCLAT noted that Section 82 of the CGST Act explicitly gives precedence to the IBC over GST dues, preventing tax authorities from claiming secured creditor status for such dues, thus ensuring that the insolvency process remains paramount and prevents it from being derailed by belated claims.