Chapter XV - Demands and recovery
Section 82
Section 82: Tax to be first charge on property
Section 82 makes GST tax, interest and penalty a first charge on property, subject to the Insolvency and Bankruptcy Code exception.
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Need advice on Section 82?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Notwithstanding anything to the contrary contained in any law for the time being in force, save as otherwise provided in the Insolvency and Bankruptcy Code, 2016 (31 of 2016), any amount payable by a taxable person or any other person on account of tax, interest or penalty which he is liable to pay to the Government shall be a first charge on the property of such taxable person or such person.
Introduction
A statutory first charge can affect priority when the property of a taxable or other liable person is used to satisfy competing claims.
Key takeaways
Covered dues
Tax, interest and penalty payable to Government under the CGST Act are covered.
Priority rule
The Act states first-charge status notwithstanding contrary law.
IBC exception
The rule expressly saves what is otherwise provided in the Insolvency and Bankruptcy Code, 2016. Priority in insolvency must therefore be assessed under that Code.
Covered dues
Tax, interest and penalty payable to Government under the CGST Act are covered.
Priority rule
The Act states first-charge status notwithstanding contrary law.
IBC exception
The rule expressly saves what is otherwise provided in the Insolvency and Bankruptcy Code, 2016. Priority in insolvency must therefore be assessed under that Code.
Practical checklist
Do
- Identify the liable person and property.
- Confirm the outstanding GST components.
- Check whether insolvency proceedings change priority.
Avoid
- Assume recovery or attachment is valid without checking the statutory prerequisites.
Frequently asked questions
Does CGST always override an insolvency process?
No. Section 82 expressly preserves contrary treatment under the Insolvency and Bankruptcy Code.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026