Sir/Madam..
1. What is the nature of Actionable claim under GST?
2. Whether
(A) Claim for Reimbursement of Expenditure is an Actionable Claim?
(B) Amount recovered through Suit towards legal costs incurred is an Actionable Claim?
Please guide on the Concept of Actionable Claim under GST.
As per Section 2(1) of CGST Act ‘actionable claim’ shall have the meaning as assigned to it in section 3 of Transfer of Property Act, 1882 according to which actionable claims means a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of movable property or to any beneficial interest in movable property not in the possession, either actual or constructive, of the claimant, which the Civil Courts recognize as affording grounds for relief, whether such debt or beneficial interest be existent, accruing, conditional or contingent.
Illustrations of actionable claims are –
• Unsecured debts
• Right to participate in the draw to be held in a lottery.
Though actionable claims are included in goods but actionable claims other than lottery, betting and gambling has been excluded from the term supply as per paragraph 6 of Schedule III of CGST Act.
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