Section 88 LIABILITY IN CASE OF COMPANY IN LIQUIDATION - GST Ready Reckoner - GST

LIABILITY IN CASE OF COMPANY IN LIQUIDATION Initiation by liquidator of a company of his appointment to Commissioner : When any company is being wound up whether under the orders of a court or Tribunal or otherwise, every person appointed as receiver of any assets of a company (hereafter referred to as the liquidator ), shall, within 30 days after his appointment , give intimation of his appointment to the Commissioner [ Section 88(1)]. Estimation by commissioner of any tax, interest or penalty payable/likely to become payable by the company in liquidation : The Commissioner shall, after making such inquiry or calling for such information as he may deem fit, notify the liquidator within 3 months from the date on which he receives intimation of the appointment of the liquidator, the amount which in the opinion of the Commissioner would be sufficient to provide for any tax, interest or penalty which is then, or is likely thereafter to become, payable by the company [ Section 88(2) ]. In case Company fails to pay tax Directors of such company are liable Director of a private company to be jointly and severally liable for the payment of such tax, interest or penalty not recovered: When any private company is wound up and any tax, interest or penalty determined under CGST Act on the company for any period, whether before or in the course of or after its liquidation, cannot be recovered, then every person who was a director of such 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. However, director shall not be so liable if 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 [ Section 88(3) ]. As Per Rule 160 . Recovery from company in liquidation Where the company is under liquidation as specified in section 88, the Commissioner shall notify the liquidator for the recovery of any amount representing tax, interest, penalty or any other amount due under the Act in FORM GST DRC -24 .