GST DRC-24 explained: intimation to the liquidator about GST dues

How Section 88 works

When a company is being wound up, the liquidator must inform the Commissioner of his appointment within 30 days. The Commissioner, within three months of that intimation, notifies the liquidator of the amount that appears sufficient to provide for tax, interest or penalty then or likely to become payable by the company. Rule 160 prescribes DRC-24 for this communication.

The liquidator must set aside the notified amount and cannot part with the company's assets in a way that would defeat that provision, except as permitted by law.

For liquidators

The DRC-24 amount is an estimate intended to make provision. It may later be revised as pending proceedings conclude, so liquidators should ask the GST office to update the figure when orders are passed or appeals are decided.

• Send the intimation of appointment to the jurisdictional Commissioner promptly
• Record the DRC-24 amount in the claims and provisioning process
• Ask for the computation and the orders on which the amount is based
• Check the GST portal for pending notices and orders of the company

For directors

Section 88 also deals with personal liability. Where tax due from a private company cannot be recovered in liquidation, directors may be jointly and severally liable unless they prove that the non-recovery is not due to their gross neglect, misfeasance or breach of duty. Directors should keep records showing how GST compliance was handled.

Insolvency proceedings

Where a company is in insolvency resolution or liquidation under the Insolvency and Bankruptcy Code, the claim process and priorities under that Code generally govern how government dues are treated. The interaction between the two laws is technical, so liquidators and resolution professionals should take specific advice before admitting or rejecting a GST claim.

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This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.