Section 87 of GST Act: Liability in case of amalgamation or merger of companies

Amended and updated notes on section 87 of CGST Act, 2017. Provisions and rules related to liability in case of amalgamation or merger of companies.

Amended and updated notes on section 87 of CGST Act, 2017. Detail discussion on provisions and rules related to liability in case of amalgamation or merger of companies.

Chapter XVI (Sections 8594) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to liability to pay in certain cases. Section 87 of CGST 2017 provides for liability in case of amalgamation or merger of companies.

Recently, we have discussed in detail section 86 (Liability of agent and principal) of CGST Act 2017. Today, we learn the provisions of section 87 of Central GST Act 2017.

Section 87 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 87 is 1-7-2017.

Name of ActThe Central Goods and Services Tax Act 2017
Enacted byParliament of India
Administered byCentral Board of Indirect Taxes & Customs
Governing bodyGST Council
Number of Chapters21
Number of Sections174
You are reading:
Chapter No.XVI
Chapter NameLiability to Pay in Certain Cases
Section No.87
Section NameLiability in case of amalgamation or merger of
companies
Updated 2024 EditionGST Law Book PDF

Section 87 of Central GST – Liability in case of amalgamation or merger of companies1

Section 87 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017.

Section 87(1) of CGST Act

Section 87(1): When two or more companies are amalgamated or merged in pursuance of an order of court or of Tribunal or 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.

Section 87(2) of CGST Act

Section 87(2): Notwithstanding anything contained in the said order, for the purposes of this Act, the said two or more companies shall be treated as distinct companies for the period up to the date of the said order and the registration certificates of the said companies shall be cancelled with effect from the date of the said order.

  1. Section 87 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎


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