Liability to Pay GST/Service Tax: Karnataka HC rules Verification and Satisfaction by Official Liquidator required

The Karnataka High Court has clarified that the liability to pay GST and service tax lies with the official liquidator of a company under liquidation. The court ruled that the liquidator must verify and be satisfied with the correctness of tax dues before discharging any liabilities. This decision underscores the official liquidator’s role in ensuring tax obligations are met as part of the liquidation process, emphasizing the need for proper verification and satisfaction of tax dues before making payments.