Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 20-10-2016 – Chapter XXII of the Model Law contains Chapter XXII comprising of sections 108 to 115 which deal with liability to pay GST in eight special cases as follows : Section Liability 108 Liability in case of transfer of business 109 Liability in case of amalgamation / merger of companies 110 Liability in case of company in liquidation 111 Liability of partners of firm to pay tax 112 Liability of guardians, trustees etc 113 Liability of Court of Wards etc. 114 Special provision regarding liability to pay tax in certain cases (death, discontinued business, hindu undivided family or association of persons, on partition, dissolution of firm, termination of guardianship or
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part Determination or not of liability The only pre-requisite is that such tax liability should have remained unpaid or is determined after such transfer. The transferee or lessee shall be jointly and severally liable to pay – Tax Interest Penalty due from or payable by such payable person (transferor) The transferee may carry on business in his own name or some other name. He shall- get his certificate of registration amended appropriately within prescribed time. pay GST w.e.f. date of transfer on taxable supply of goods and / or services Business transfers covered under section 109 would inter alia include – Sale, Gift, Lease, Leave and license Hire, or In any other manner (e.g. , exchange, rental, disposal etc.) Amalgamation or merger of
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e date of the order, then such transactions of supply and receipt shall be included in the turnover of supply or receipt of the respective companies and shall be liable to tax accordingly. Thus, till the date of order of merger or amalgamation is pronounced, companies under the scheme shall be treated as distinct companies and shall be liable to discharge respective tax liabilities. In case of merger and amalgamation, the scheme may fix an 'appointed date' for such merger or amalgamation and the Court / Tribunal order may be on a different date. The actual date of order and effective date may not be the same. The two or more companies shall be treated as distinct companies for the period up to the date of the said order and the regi
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