Page 231 - CA Final GST

Badlani Classes

to any gross neglect, company will be continue to
misfeasance or breach of duty apply.
on his part in relation to the Important Note:
affairs of the company [Section Nothing has been
89(1)]. mentioned in the GST Act
regarding
conversion/transfer of a
private company to public
company.
As a result section 89
provisions does not apply
when a private company is
converted to a public
company, it can be
interpreted to mean that this
provision does not apply to
public companies.
90 Liability of partners where any firm (including Commissioner must be
of firm to pay tax LLP) is liable to pay any tax, informed by the firm or the
(firm includes interest or penalty under this retiring partner in case of
limited liability Act, the firm and each of the retirement of a partner. The
partnership firm) partners of the firm shall be retiring partner could be
jointly and severally liable for held liable for dues under
such payment. GST until the date of his
Important note: retirement.
Normally, partners have If any intimation regarding
limited liabilities in LLPs. But the retirement is not given
the GST Act overrides all other within 1 month, the retiring
laws and the partners become partner will be continued to
jointly and severally liable for be held liable till such
the entire GST dues. intimation is received by the
Commissioner.
Example:- Nambiar & Co.
is a partnership firm with 4
partners. Mr. C retires on
20 August. Nambiar & Co.
th
has GST due amount `
20,000 till 20 August and
th
Mr. C informs the
th
Commissioner on 30
August about the same, then
C is liable for the due
amount ` 20,000.
Now if neither C nor the
firm informs the
Commissioner regarding
his retirement, and Nambiar
& Co. does not pay the dues
until it stands at ` 35,000 on
th
30 September (when they
finally inform the
Commissioner), then Mr. C
would be liable for ` 35,000 Page230

Central Goods & Services Tax Act, 2017