Page 230 - CA Final GST

Badlani Classes

Such companies shall be
treated as distinct
companies under GST till
the date of the order (and
not order effect date). Their
registrations will get
cancelled on the date of
order.
Example: X Ltd and Y Ltd
has received a court order
on 15 December 2017 to
th
st
merge with effect from 1
October 2017.
Under GST they will be
treated as distinct
companies till 15
th
December 2017 and each
one will be responsible for
th
its own dues until 15
December 2017.
88 Liability in case of • Company Section 88(1) when any
company in • Where dues cannot be company is being wound up
liquidation recovered from private person appointed as
company then same are to receiver of any assets of
be recovered from its such company, is required
directors who were in to inform to the
office during the period Commissioner, of such
when the tax was due will appointment within 30 days
be held liable for payment after his appointment.
of such tax, interest or Section 88(2) the
penalty, unless he proves Commissioner is required to
to the satisfaction of the notify within 3 months from
Commissioner that such the date of receipt of
non-recovery cannot be intimation, the amount
attributed to any gross which would be sufficient
neglect, misfeasance or to provide for any tax and
breach of duty on his part other dues of the company.
in relation to the affairs of
the company [Section 88
(3)].
89 Liability of directors Notwithstanding anything As per Section 89(2), if the
of private company contained in the Companies company has been
Act, 2013, converted from a private to
Where any tax, interest or a public limited company,
penalty due from a private then the provisions under
company cannot be recovered, Section 89(1) will not
the, every person who was a apply.
director of the private company
during such period shall be Provided that nothing
liable for the payment of such contained in section 89(2)
dues unless he proves to the shall apply to any personal
satisfaction of the penalty imposed on such
Commissioner that such non- director. It means penalty Page229
recovery cannot be attributed leviable on directors of a

Central Goods & Services Tax Act, 2017