Section 81 of CGST Act

Transfer of Property to be Void in Certain Cases

• Enforced w.e.f. 1-7-2017.

Where a person,

after any amount has become due from him,

creates a charge on or parts with the property belonging to him or in his possession

by way of sale, mortgage, exchange, or any other mode of transfer whatsoever of any of his properties in favour of any other person

with the intention of defrauding the Government revenue,

such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the said person:

Provided that, such charge or transfer shall not be void

if it is made for adequate consideration,

in good faith and

without notice of the pendency of such proceedings

under this Act or without notice of such tax or other sum payable by the said person, or with the previous permission of the proper officer.