Actionable Claim under GST

An actionable claim, as defined under

GST Act, is 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. To re-iterate in a concise manner, an actionable claim is a claim which can be made by the creditor, for any type of debt other than a debt secured by mortgage of immovable property, or by hypothecation or pledge if it is a movable property, which is not in possession of the claimant, be it actual or constructive. The Civil courts shall recognize the claimable debts as worthy of affording grounds for relief. Actionable claims can be enforced in a court of law. Click here to read on GST on Property Transactions

Examples of Actionable Claims

Claim for arrear rent
Claim for rent to fall due in future
An option offered to re-purchase the property once sold
Contract for the purchase of Goods is endorsed by the purchaser declaring that he has relinquished all his rights and interest in the goods purchased, to the mentioned person in the contract
Lottery Tickets
Benefit of a contract giving the option to purchase a land
Right to benefit of a contract
Right to credit in a provident fund
Dividend on shares
Insurance money
Share in a partnership property
Rights under a license

What is not an Actionable Claim?

A decree for debt
Right to sue
A claim in the share of profit
A copyright
Coupons and vouchers

Actionable claims are only applicable for Goods, and not for services. Goods, as described in the CGST Act, are every kind of movable property other than money, but includes the claims.

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Frequently Asked Questions

Common questions about Actionable Claims Under GST: Understanding Debt Claims in Finance.

An actionable claim under GST is defined as 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 of the claimant. The civil courts must recognize these claims as grounds for relief.

Yes, actionable claims can be enforced in a court of law. The civil courts recognize these claims as affording grounds for relief, whether the debt or beneficial interest is existent, accruing, conditional, or contingent.

Some examples of actionable claims include claims for arrear rent, claims for rent to fall due in the future, an option offered to re-purchase a property once sold, lottery tickets, the right to benefit from a contract, rights under a license, and a claim for a share in a partnership property.

No, claims related to debt secured by a mortgage of immovable property are not considered actionable claims under GST. Actionable claims are specifically for claims related to movable property or debt not secured by a mortgage or hypothecation of movable property.

No, actionable claims are only applicable for goods and not for services. The definition of goods under the CGST Act includes movable property other than money and claims, but it does not extend to services.

No, a decree for debt is not considered an actionable claim under GST. The article specifically mentions that actionable claims do not include a decree for debt.

No, coupons and vouchers are not considered actionable claims under GST. The article mentions that actionable claims do not include coupons and vouchers.

Yes, rights under a license are considered actionable claims under GST. The article lists "rights under a license" as an example of an actionable claim.

No, a claim for a share of profit is not considered an actionable claim under GST. The article specifically mentions that actionable claims do not include a claim in the share of profit.

No, a copyright is not considered an actionable claim under GST. The article lists "copyright" as something that is not considered an actionable claim.