Question 17 - What happens to tax dues where the Company (taxable person) goes into liquidation? - FAQ on GST dated 21.9.2016 based on Draft Model GST

Q 17. What happens to tax dues where the Company (taxable person) goes into liquidation? Ans. When any company is wound up and any tax or other dues determined whether before or after liquidation that remains unrecovered, every person who was a director of the company during the period for which the tax was due, shall jointly and severally be liable for payment of dues unless he proves to the satisfaction of the Commissioner that such non-recovery is not attributed to any gross neglect, misfeasance or breach of duties on his part in relation to the affairs of the company.