**Executive Summary**
The Indian Institute of Corporate Affairs (IICA) organized a masterclass for its Post Graduate Insolvency Programme (PGIP) cohort on the interplay between Goods and Services Tax (GST) and the Prevention of Money Laundering Act (PMLA) with the Insolvency and Bankruptcy Code (IBC). The session, held on March 5, 2026, aimed to provide participants with insights into cross-statutory challenges faced by insolvency professionals. No specific deadlines or action items for external stakeholders were mentioned.
**Key Points / Main Content**
* **GST Framework and Insolvency:**
* Comprehensive overview of the Goods and Services Tax (GST) framework.
* Explanation of the intersection of GST with insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC).
* Revisiting foundational GST concepts including "supply," "consideration," taxable events, input tax credit (ITC), and reverse charge mechanisms.
* Explanation of the statutory architecture for intra-state and inter-state transactions.
* Emphasis on judicial pronouncements indicating that claims not included in an approved resolution plan, including statutory dues, stand extinguished.
* Addressing practical compliance during Corporate Insolvency Resolution Process (CIRP), such as fresh GST registration, filing of returns by IRP/RP, ITC availability, and the impact of Section 14 moratorium on recovery.
* **PMLA and IBC Interplay:**
* Insightful session on the interplay between the IBC and the Prevention of Money Laundering Act, 2002 (PMLA).
* Explanation of the concept of "proceeds of crime."
* Outline of the three stages of money laundering: Placement, Layering, and Integration.
* Examination of jurisdictional complexities between the National Company Law Tribunal (NCLT) and PMLA authorities, particularly concerning asset attachment during CIRP.
* Elaboration on Section 32A of the IBC and its role in protecting resolution processes.
* Discussion of evolving jurisprudence harmonizing insolvency resolution with anti-money laundering enforcement.
* Highlighting judicial observations on the primacy of Section 32A in supporting resolution objectives.
**Impact Analysis**
**PGIP Participants**
* **Impact:** Gained strategic and practical insights into cross-statutory challenges frequently encountered in insolvency proceedings. Understood the convergence of taxation, insolvency, and enforcement laws for effective resolution outcomes.
* **Action Required:** None explicitly mentioned; the session was for learning and capacity building.
Key Entities Referenced
Insolvency and Bankruptcy Code, 2016 (IBC): The primary legislation governing insolvency and bankruptcy proceedings in India, discussed in relation to its intersection with GST and PMLA.
Prevention of Money Laundering Act, 2002 (PMLA): Legislation dealing with money laundering, whose interplay with the IBC was a key topic of discussion.
Goods and Services Tax (GST): The indirect tax regime in India, whose concepts and intersection with insolvency proceedings were explained.
Section 14 of the IBC: Specifically mentioned section of the IBC related to the moratorium's effect on recovery proceedings.
Section 32A of the IBC: Specifically mentioned section of the IBC related to the protection of resolution processes.
Ministry of Corporate Affairs
IICA Hosts “Meet the Legend” Session for PGIP
Cohort on GST and PMLA–IBC Interplay
Posted On: 05 MAR 2026 1:49PM by PIB Delhi
The Indian Institute of Corporate Affairs (IICA), Manesar, recently organised an enriching session under
its flagship “Meet the Legend” series for the 7th cohort of the Post Graduate Insolvency Programme
(PGIP). The three-hour masterclass featured two distinguished judicial experts: Mr. J.P. Singh, Hon’ble
Judicial Member, GST Appellate Tribunal, and Mr. Balesh Kumar, Hon’ble Member, Appellate
Tribunal (PMLA, FEMA, PBPTA, NDPSA, and SAFEMA).
Mr. J.P. Singh provided a comprehensive overview of the Goods and Services Tax (GST) framework and
its intersection with insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC). He
revisited foundational GST concepts such as “supply,” “consideration,” taxable events, input tax credit
(ITC), and reverse charge mechanisms, while explaining the statutory architecture governing intra-state
and inter-state transactions.
He referred to significant judicial pronouncements including Swiss Ribbons Pvt. Ltd. v. Union of India and
Ghanashyam Mishra & Sons Pvt. Ltd. v. Edelweiss Asset Reconstruction Co. Ltd., emphasizing that once a
resolution plan is approved, claims not included in the plan, including statutory dues, stand extinguished.
The session also addressed practical compliance considerations during CIRP, such as fresh GST
registration, filing of returns by IRP/RP, availability of ITC, and the effect of the moratorium under
Section 14 of the IBC on recovery proceedings.
Mr. Balesh Kumar delivered an insightful session on the interplay between the IBC and the Prevention of
Money Laundering Act, 2002 (PMLA). He explained the concept of “proceeds of crime” and outlined the
three stages of money laundering — Placement, Layering, and Integration.The discussion examined jurisdictional complexities between the National Company Law Tribunal
(NCLT) and PMLA authorities, particularly in cases involving attachment of assets of corporate debtors
undergoing CIRP. He elaborated on Section 32A of the IBC and its objective of protecting resolution
processes.
Referring to judicial developments, including Manish Kumar v. Union of India, he noted the evolving
jurisprudence aimed at harmonizing the objectives of insolvency resolution with anti-money laundering
enforcement. He also highlighted recent judicial observations recognizing the primacy of Section 32A in
supporting the objectives of resolution.
The interactive session provided PGIP participants with strategic and practical insights into cross-
statutory challenges that insolvency professionals frequently encounter. The discussions underscored the
importance of understanding the convergence of taxation, insolvency, and enforcement laws in ensuring
effective resolution outcomes.Sh. Sudhaker Shukla, Head of the Centre for PGIP, delivered the vote of thanks, expressing gratitude to
the distinguished speakers for their invaluable insights and guidance to the students.
The “Meet the Legend” series continues to reflect IICA’s commitment to academic excellence and
professional capacity building by connecting participants with leading judicial and regulatory experts.
***
ONP/
(Release ID: 2235489) Visitor Counter : 252
Read this release in: Urdu , ही , Tamil