Liability in case of amalgamation or merger of Companies under CGST Means

What is Liability in case of amalgamation or merger of Companies under CGST

 

The details about Liability in case of amalgamation or merger of Companies are explained here.

Liability in case of amalgamation or merger of Companies

As per section 87 of Central Goods and Service Tax Act, 2017 when two or more companies are amalgamated or merged in pursuance of an order of court or of Tribunal or otherwise and the order is to take effect from a date earlier to the date of the order and any two or more of such companies have supplied or received any goods or services or both to or from each other during the period commencing on the date from which the order takes effect till the 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 they shall be liable to pay tax  accordingly.

Notwithstanding anything contained in the said order, for the purposes of this Act, the said two or more companies shall be treated as distinct companies for the period up to the date of the said order and the registration certificates of the said companies shall be cancelled with effect from the date of the said order.

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