Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 5-1-2017 Last Replied Date:- 5-1-2017 – A taxable person is liable to register under the provisions of GST Act and pay the tax to the credit of either the Central Government or the State Government. Section 10 of the Model Goods and Services Tax Act, 2016 ( Act for short) defines the term taxable person as- A person who is registered or liable to be registered under Schedule V of the Act; A person who has obtained or is required to obtain more than one registration, whether in one State or more than one State, shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act; An establishment of a person who has obtained or is required to obtain registration in a State, and any of his other establishments in another State shall be treated as establishments of distinct persons for the purposes of this Act. Chapter XXIV of the Act provides for the liability to pay tax in certain cas
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ble wholly or to the extent of such transfer to pay the tax, interest or any penalty due from the taxable person up to the time of such transfer but has remained unpaid or is determined thereafter. The transferee of the said business is liable to pay the tax on the supply of goods and/or services by him with effect from the date of such transfer. He shall, if he is an existing taxable person apply within the prescribed time for amendment of his certificate of registration. Liability of agent and principal This sort of liability has been found in the amended Act and not found in the original model law. Section 128 provides that where an agent supplies or receives any taxable goods on behalf of his principal such agent and his principal shall be jointly and severally liable to pay the tax. Liability in case of amalgamation/merger of companies The liability of paying tax in case of amalgamation or merger of companies is discussed in Section 129. Section 129 (1) provides that when two or m
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iquidator will be appointed by the Court to take care of the company until the final dissolution of the company. Section 130 provides for the procedure in such a case for GST purpose as detailed below- Every person appointed as receiver of any assets of a company shall within 30 days after his appointment, give intimation of his appointment to the jurisdictional Commissioner; The Commissioner shall, after making such inquiry or calling for such information as he may deem fit, notify the liquidator within 3 months from the date on which he receives intimation of the appointment of the liquidator, the amount which in the opinion of the Commissioner would be sufficient to provide for any tax, interest or penalty which is then, or is likely thereafter to become, payable by the company; When any company is would up and any tax, interest or penalty determined on the company for any period, whether before or in the course or after its liquidation, cannot be recovered, then every person who wa
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tion 131(2) provides the liability of a private company which is converted into a public company. Where the tax us due and cannot be recovered from such private company, then Section 131(1) shall not be applicable to any person who was a director of such private company in relation to any t ax due in respect of any supply of such private company. Liability of partners of firm Partnership firm is not a judicial person. It is having unlimited liability on the partners. The same is applicable to GST also. Section 132 provides that notwithstanding any contract to the contrary, where any firm is liable to pay any tax, interest or penalty, the firm and each of the partners of the firm shall jointly and severally be liable for such payment. This section further makes an obligation on the part of the retiring partner. The retiring partner or the firm shall intimate the date of the retirement of the said partner to the jurisdictional Commissioner by a notice in that behalf in writing within one
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st or penalty is payable is under the control of the Court of Wards, the Administrator General, the Official Trustee or any receiver or manager appointed by or under any order of a court, the same shall be levied upon and recoverable from such Court of Wards etc., Liability in case of death of taxable person Section 135 provides the recovery of tax from the person who survives a death person. Section 135 (1) provides that where a taxable person dies then- if the business is continued after his death by his legal representatives or any other person, they shall be liable to pay the dues to the Government; if the business is discontinued, whether before or after his death, his legal representative shall be liable to pay out of the estate of the deceased, to the extent to which the estate is capable ofmeeting the charge, the tax, penalty or interest due from such person; whether such tax, interest or penalty has been determined before his death but has remain unpaid or is determined after
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termination of guardianship or trustee Section 135(4) provides that where a taxable person is liable to pay tax, interest or penalty is the guardian or a ward or a trustee and if the guardianship or trustee is terminated, the ward or the beneficiary shall be liable to pay the dues whether such dues has been determined before the termination of guardianship or trust but has remained unpaid or is determined thereafter. Liability on discontinuance of HUF/Firm/AOP Section 136 (1) provides that where a taxable person is a firm or AOP or a HUF and the same has discontinued its business then the tax payable may be determined as if no such discontinuance had taken place. Every person who was at the time of such continuance, a partner of such firm or a member of AOP or HUF shall be liable jointly and severally for the payment whether the same has been determined prior to or after such discontinuance. Liability on change in constitution of HUF/AOP Section 136 (2) provides that where a change has
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