Chapter XVI LIABILITY TO PAY IN CERTAIN CASES

Where an agent supplies or receives any taxable goods on behalf of his principal, such agent and his principal shall, jointly and severally, be liable to pay the tax payable on such goods under this Act.

Below is the text of Section 87 from the Chhattisgarh Goods and Services Tax Act, 2017: 87. Liability in case of amalgamation or merger of companies.—(1) When two or more companies are amalgamated or merged in pursuance of an order of court or of Tribunal or of 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. (2) Notwithstanding anything contained in the said order, all the services, goods or both supplied or received during the said period shall be treated as included in the supply and receipt of the respective companies and shall be liable to tax.

Liability of directors of private company. Notwithstanding anything contained in the Companies Act, 2013, where any private company is wound up after the commencement of this Act, and any tax, interest or penalty due from the private company in respect of any supply of goods or services or both for any period before its liquidation cannot be recovered, then, every person who was a director of the said private company at any time during the period for which the tax was due shall, jointly and severally, be liable for the payment of such tax, interest or penalty, unless he proves to the satisfaction of the Commissioner that such 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.

Liability of partners of firm to pay tax.—Notwithstanding any contract to the contrary and any other law for the time being in force, where any firm is liable to pay any tax, interest or penalty under this Act, the firm and each of the partners of the firm shall, jointly and severally, be liable for such payment: Provided that where any partner retires from the firm, he or the firm, shall intimate the date of retirement of the said partner to the Commissioner by a notice in that behalf in writing and such partner shall be liable to pay tax, interest or penalty due up to the date of his retirement whether determined or not, on that date: Provided further that if no such intimation is furnished within one month from the date of retirement, the liability of such partner shall continue until the date on which such intimation is furnished to the Commissioner.

Liability of guardians, trustees etc.

(1) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, where a person, liable to pay tax, interest or penalty under this Act, dies, then— (a) if a business carried on by the person is continued after his death by his legal representative or any other person, such legal representative or other person, shall be liable to pay tax, interest or penalty due from such person under this Act; and (b) if the business carried on by the person is discontinued, whether by his death or otherwise, his legal representative shall be liable to pay, out of the estate of the deceased, to the extent to which the estate is capable of meeting the charge, the tax, interest or penalty due from such person under this Act: Provided that such liability shall be limited to the extent to which the estate is capable of meeting the charge. (2) Where a person, liable to pay tax, interest or penalty under this Act, is succeeded by any other person on account of transfer of his business for any reason, including death or retirement or otherwise, then the successor shall be liable to pay tax, interest or penalty due from such person under this Act. (3) Where a person, liable to pay tax, interest or penalty under this Act, is a firm or an association of persons and such firm or association is partitioned or dissolved, then— (a) the tax, interest or penalty payable under this Act by such firm or association of persons for the period up to the date of such partition or dissolution shall be payable by every person who was a partner or member of the firm or association of persons immediately before such partition or dissolution; and (b) every partner or member of such firm or association of persons shall, notwithstanding such disassociation, be liable severally and jointly for the payment of the tax, interest or penalty due in respect of such firm or association of persons, whether or not such tax, interest or penalty was determined before such partition or dissolution. (4) Where a person, liable to pay tax, interest or penalty under this Act, is a family and the Hindu Undivided Family is partitioned, then— (a) the tax, interest or penalty payable under this Act by such family for the period up to the date of such partition shall be payable by every member of such family; and (b) every member of such family shall, notwithstanding such partition, be liable severally and jointly for the payment of the tax, interest or penalty due in respect of such family, whether or not such tax, interest or penalty was determined before such partition. (5) Where a person, liable to pay tax, interest or penalty under this Act, is a guardian or trustee, and the business of such guardian or trustee is carried on by another person, then the provisions of sub-sections (1) to (4) shall apply in relation to such other person as they apply in relation to the guardian or trustee. (6) The provisions of this section shall apply even if the tax, interest or penalty due from a person, liable to pay tax, interest or penalty under this Act, was determined before his death or retirement or otherwise but has remained unpaid at the time of his death or retirement or otherwise.

The full text of Section 94 and its associated sub-clauses are not contained within the provided material.