Section 82 of CGST Act - Tax to Be First Charge on Property

Section 82 of the Central Goods and Services Tax Act, 2017 creates a statutory first charge in favour of the Government over the property of a taxable person, or another person liable under the Act, for specified GST dues. The section expressly preserves the overriding operation of the Insolvency and Bankruptcy Code, 2016.

ChapterChapter XV - Demands and Recovery

Amounts coveredTax, interest or penalty payable to the Government

Property affectedProperty of the taxable person or other person who is liable

Express exceptionInsolvency and Bankruptcy Code, 2016

Text of Section 82

82. Tax to be first charge on property. - 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.

Meaning and scope of Section 82

The expression "first charge" gives Government dues covered by Section 82 a statutory priority against the property of the person liable. The provision begins with a non-obstante clause - "notwithstanding anything to the contrary contained in any law for the time being in force" - indicating that the rule is intended to operate despite contrary provisions in other laws, subject to the express IBC exception stated in the section itself.

The provision applies not only to a registered or taxable person. Its wording also extends to "any other person" who is liable to pay tax, interest or penalty to the Government under the CGST Act. The charge attaches to the property of the person on whom that liability rests.

IBC exception: an important limitation

Section 82 specifically says "save as otherwise provided in the Insolvency and Bankruptcy Code, 2016". Accordingly, where the IBC applies and provides a different treatment or priority for claims and distributions, Section 82 must be read subject to that insolvency framework. The provision should therefore not be read as an unconditional priority rule overriding the IBC.

Practical point: Section 82 creates the statutory charge, while actual recovery action must be considered with the applicable demand and recovery provisions of the CGST Act and, where relevant, other overriding legislation. Priority disputes can depend on the governing statute, the nature and timing of competing interests, and the facts of the case.

How Section 82 fits within GST recovery provisions

Provision	Subject	Relevance
Section 78	Initiation of recovery proceedings	Deals with when recovery may be initiated after an order.
Section 79	Recovery of tax	Provides statutory modes for recovery of amounts payable to the Government.
Section 80	Payment in instalments	Provides for payment in instalments in eligible circumstances.
Section 81	Transfer of property in certain cases	Addresses specified transfers intended to defeat Government revenue.
Section 82	First charge on property	Creates the statutory charge for tax, interest or penalty.
Section 83	Provisional attachment	Provides a distinct protective mechanism where statutory conditions are satisfied.
Section 84	Continuation and validation of recovery proceedings	Addresses changes in Government dues during appeal, revision or other proceedings.

Key points to remember

Section 82 concerns priority over property for amounts that are payable on account of tax, interest or penalty. It is part of Chapter XV of the CGST Act and should be read together with the surrounding demand and recovery provisions. Its non-obstante language is broad, but the section itself expressly subordinates the first-charge rule to the Insolvency and Bankruptcy Code, 2016.

Official legal resources

For the current statutory text and official GST material, refer to the Government resources linked in the sidebar. Readers dealing with an actual recovery, insolvency, mortgage or secured-creditor dispute should verify the latest statutory amendments, notifications and binding judicial decisions applicable to the facts.

Last reviewed: 15 September 2026. This page is an informational summary of Section 82 and is not a substitute for professional advice on a specific dispute.