Section 89 of CGST Act,2017 Liability of directors of private company

Section 89 of CGST Act,2017 Liability of directors of private company Section 89 of CGST Act,2017 from bare act : (1) Notwithstanding anything contained in the Companies Act, 2013, where anytax, interest or penalty due from a private company in respect of any supply of goods orservices or both for any period cannot be recovered, then, every person who was a directorof the private company during such period shall, jointly and severally, be liable for thepayment of such tax, interest or penalty unless he proves that the non-recovery cannot beattributed to any gross neglect, misfeasance or breach of duty on his part in relation to theaffairs of the company. (2) Where a private company is converted into a public company and the tax, interestor penalty in respect of any supply of goods or services or both for any period during whichsuch company was a private company cannot be recovered before such conversion, then,nothing contained in sub-section (1) shall apply to any person who was a director of suchprivate company in relation to any tax, interest or penalty in respect of such supply of goodsor services or both of such private company: Provided that nothing contained in this sub-section shall apply to any personal penaltyimposed on such director.

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CHAPTER XVI

LIABILITY TO PAY IN CERTAIN CASES

Chapter XVI of the CGST Act,2017 covers ten sections relating to LIABILITY TO PAY IN CERTAIN CASESunder GST. All thesesections from the CGST Act,2017 are available for your ready reference. Section 85 :Liability in case of transfer of business Section 86 :Liability ofagent andprincipal Section 87 :Liability incase ofamalgamationor merger ofcompanies Section 88 :Liability incase ofcompany inliquidation Section 89 :Liability ofdirectors of privatecompany Section 90 :Liability ofpartners offirm to paytax Section 91 :Liability ofguardians,trustees, etc Section 92 :Liability ofCourt ofWards, etc. Section 93 :Specialprovisionsregardingliability topay tax,interest orpenalty incertain cases Section 94 :Liability inother cases

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