Liability of Partners of the Firm under GST
All the partners of any firm shall jointly and severally liable for payment of any tax, interest or penalty. Firm or partner shall intimate the retirement of any partner to the Commissioner by a notice in writing. Liability to pay tax, interest or penalty up to the date of such retirement, whether determined on that date or subsequently, shall be on such partner. If no intimation is given within one month from the date of retirement, the liability of such partner shall continue until the date on which such intimation is received by the Commissioner.
If no intimation is given within one month from the date of retirement, the liability of such partner shall continue until the date on which such intimation is received by the Commissioner.The intimation in writing about the retiring partner the Commissioner can be given by the firm or by the retiring partner himself.
A limited liability partnership (LLP) formed and registered under the Limited Liability Partnership Act, 2008 shall be considered and treated like a firm and provisions of sections 111, 114 or 115 of Model GST Law shall apply accordingly. A LLP is not a body corporate under the Model GST Law for recovery purposes.
Chapter XXII of the Model GST 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 trust etc). |
115 | Liability in other cases (discontinued business of HUF, firm, AOP; change in constitution of firm or AOP etc.) |
Free Education Guide on Goods & Service Tax (GST)