Section 88 of GST - Liability in case of company in liquidation. Everything you want to know about GST Section 88. In this section you may find all details for “Liability in case of company in liquidation” as per GST Act 2017. Detailed Analysis of GST Section 88 of GST Act 2017. We Provide Complete Details for All GST Section’s and In this article you may find all details for GST Section 88. Check Section Wise Analysis of GST Act 2017, Chapter Wise Analysis of GST All Sections.Must Read – List of all sections of GST
Section 88 of GST - Liability in case of company in liquidation
|Section or Rule||Description|
|Section 2(17)||Definition of Business|
|Section 2(43)||Definition of Taxable Person|
|Section 2(84)||Definition of person|
|Section 7||Meaning and scope of supply|
|Section 9||Levy and collection|
|Section 82||Tax to be first charge on property|
|Section 137||Offences by Companies|
Analysis of this section
- Every person appointed as receiver / liquidator needs to give intimation of his appointment to the Commissioner within 30 days of his appointment.
- Within 3 months from the date of such intimation, the Commissioner, after making necessary enquiry or calling of information, will notify the liquidator to set apart a sum of money that would be sufficient to discharge, in his opinion, the amount of tax, interest and penalty payable by the company.
- When a private company is not able to clear its dues, then every person who was the director at any time during the period, for which tax is due, would be liable jointly and severally to pay the dues.
- However, if any director proves to the satisfaction of the Commissioner that such non-recovery is not due to his gross neglect, misfeasance or breach of duty, the liability would not arise in the hands of such director.
- Rule 160 of CGST Rules, 2017 states that where a company is under liquidation, as specified u/s 88 of the CGST Act, then the Commissioner shall notify the liquidator for recovery of any amount representing tax, interest, penalty or any amount due under the Act.
- While section 88 provides that the provision must be made by liquidator for GST dues ‘then’ or ‘likely thereafter to become payable’, Rule 68 provides only for ‘amount due’ [i.e. crystallised liabilities] existing on the date of the letter and not for likely liabilities to become payable thereafter.
- As per Rule 160, the intimation must be sent in Form GST DRC – 24 to the Liquidator. This intimation must contain the following details:
- (a) Name of the company being liquidated
- (b) The GSTIN of the company being liquidated
- (c) Date of the letter
- (d) Period for which demand is being made
- (e) Demand Order No.
- (f) Reference to Liquidator’s letter intimating liquidation of the company
- (g) The actual amount or likely amount, the company owes to State/ Central Government in terms of tax, interest, penalty, other dues and total arrears thereof