Section 88 of GST Act: Liability in case of company in liquidation

Amended and updated notes on section 88 of CGST Act, 2017. Detail discussion on provisions and rules related to liability in case of company in liquidation.

Amended and updated notes on section 88 of CGST Act, 2017. Detail discussion on provisions and rules related to liability in case of company in liquidation.

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 88 of CGST 2017 provides for liability in case of company in liquidation.

Recently, we have discussed in detail section 87 (Liability in case of amalgamation or merger of companies) of CGST Act 2017. Today, we learn the provisions of section 88 of Central GST Act 2017.

Section 88 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 88 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.88
Section NameLiability in case of company in liquidation
Updated 2024 EditionGST Law Book PDF

Relevant Rules and Forms for GST Section 88:

  • Rule 160: Recovery from company in liquidation
    • FORM GST DRC – 24: Intimation to Liquidator for recovery of amount

Section 88 of Central GST – Liability in case of company in liquidation1

Section 88 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 88(1) of CGST Act

Section 88(1): 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 in this section referred to as the “liquidator”), shall, within thirty days after his appointment, give intimation of his appointment to the Commissioner.

Section 88(2) of CGST Act

Section 88(2): The Commissioner shall, after making such inquiry or calling for such information as he may deem fit, notify the liquidator within three 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(3) of CGST Act

Section 88(3): When any private company is wound up and any tax, interest or penalty determined under this 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, 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.

  1. Section 88 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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