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Actionable Claim under GST


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.

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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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