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

 

 

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

 

The below post explains about Liability of directors of private company under section 89 of CGST Act,2017.

 

Section 89 of CGST Act, 2017 explains Liability of directors of private company as below: (The amendments if any will also be updated here soon).

 

The extract of Section 89 of CGST Act,2017 quoted below:

 

89  Liability of directors of private company

 

89. (1) Notwithstanding anything contained in the Companies Act, 2013, where any

tax, interest or penalty due from a private company in respect of any supply of goods or

services or both for any period cannot be recovered, then, every person who was a director

Section 89 of CGST Act, 2017 Liability of directors of private companyof the private company during such period shall, jointly and severally, be liable for the

payment of such tax, interest or penalty unless he proves that the non-recovery cannot be

attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the

affairs of the company.

(2) Where a private company is converted into a public company and the tax, interest

or penalty in respect of any supply of goods or services or both for any period during which

such 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 such

private company in relation to any tax, interest or penalty in respect of such supply of goods

or services or both of such private company:

Provided that nothing contained in this sub-section shall apply to any personal penalty

imposed on such director.

 

 

The above information clarifies about Liability of directors of private company under section 89 of CGST Act,2017.  

 

If you have any comments about Section 89 of CGST Act, 2017 explaining Liability of directors of private company, share below your thoughts:

 

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Comments


Mukesh Upadhyay: Also liable a director when he not continue his office in presently ,but he present at the time of event occurred.

SUMAN SAHA: Sec 89 Liability of directors of private company, CGST Act, 2017 Can anybody please guide me what is the action taken as Director personal liability when a Limited company having not sufficient to pay the claim and also not have sufficient fund after covid company structure very sick Waiting for your kind suggestion thank you :)

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