GST Dept‘s Claims become Invalid on approval of Resolution Plan by NCLT: Allahabad HC

Allahabad High Court ruled that GST department claims become invalid upon the approval of a resolution plan by the NCLT (National Company Law Tribunal) under the Insolvency and Bankruptcy Code. This aligns with the "clean slate" principle of the IBC, where an approved resolution plan binds all stakeholders, including tax authorities. Any GST demands or claims that were not part of the resolution plan are extinguished after its approval, providing certainty for the successful resolution applicant and facilitating the revival of the distressed company.