THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
LIABILITY TO PAY IN CERTAIN CASES
Section 94: Liability in other cases
(1) Where
a taxable person is a firm or an association of persons or a Hindu Undivided
Family and such firm, association or family has discontinued business
2(17)
“business” includes––
(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a);
(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business;
(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;
(f) admission, for a consideration, of persons to any premises;
(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;
(h) activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and
(i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;
––
a)
the
tax, interest or penalty payable under this Act by such firm, association or
family up to the date of such discontinuance may be determined as if no such
discontinuance had taken place; and
b)
every
person who, at the time of such discontinuance, was a partner of such firm, or
a member of such association or family, shall, notwithstanding such
discontinuance, jointly and severally, be liable for the payment of tax and
interest determined and penalty imposed and payable by such firm, association
or family, whether such tax and interest has been determined or penalty imposed
prior to or after such discontinuance and subject as aforesaid, the provisions
of this Act shall, so far as may be, apply as if every such person or partner or
member were himself a taxable person.
(2) Where a
change has occurred in the constitution of a firm or an association of persons,
the partners of the firm or members of association, as it existed before and as
it exists after the reconstitution, shall, without prejudice to the provisions
of section 90, jointly and severally, be liable to pay tax, interest or penalty
due from such firm or association for any period before its reconstitution.
(3) The provisions of sub-section (1) shall, so far as may be, apply where the
taxable person, being a firm or association of persons is dissolved or where
the taxable person, being a Hindu Undivided Family, has effected partition with
respect to the business
2(17)
“business” includes––
(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a);
(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business;
(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;
(f) admission, for a consideration, of persons to any premises;
(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;
(h) activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and
(i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;
carried on by it and accordingly references in that
sub-section to discontinuance shall be construed as reference to dissolution or
to partition.
Explanation.––For the purposes of this Chapter,––
(i) a “Limited Liability Partnership” formed and registered under the provisions
of the Limited Liability Partnership Act, 2008 shall also be considered as a
firm;
(ii) “court” means the District Court, High Court or Supreme Court.