Section 82 gives GST dues priority over other claims on a taxpayer's property — except in insolvency, where the Insolvency and Bankruptcy Code fixes the order of payment.
Key points
- Under section 82 of the CGST Act, 2017 any amount payable by a taxable person or any other person on account of tax, interest or penalty is a first charge on that person's property, notwithstanding any other law.
- The charge is subject to the Insolvency and Bankruptcy Code, 2016: in a corporate insolvency or liquidation, government dues rank as the Code provides (section 53 of the Code), not first.
The provisions
82Tax to be first charge on property
Statutory text
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, 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.
*Enforced w.e.f. 1st July, 2017.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- Do GST dues have priority over bank loans?
- Section 82 of the CGST Act makes GST dues a first charge on the taxpayer's property, but subject to the Insolvency and Bankruptcy Code; and secured creditors rely on section 26E of the SARFAESI Act. The interaction has been litigated with differing results.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
Outside insolvency the charge ranks ahead of other creditors, though secured creditors have contested its priority under the SARFAESI Act, 2002, which since 2016 gives secured creditors priority (section 26E of that Act); High Courts have reached differing results on how the two provisions interact. Within insolvency, the saving for the Code is express.