Amended and updated notes on section 85 of CGST Act, 2017. Detail discussion on provisions and rules related to liability in case of transfer of business.
Chapter XVI (Sections 85–94) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to liability to pay in certain cases. Section 85 of CGST 2017 provides for liability in case of transfer of business.
Recently, we have discussed in detail section 84 (Continuation and validation of certain recovery proceedings) of CGST Act 2017. Today, we learn the provisions of section 85 of Central GST Act 2017.
Section 85 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 85 is 1-7-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | XVI |
| Chapter Name | Liability to Pay in Certain Cases |
| Section No. | 85 |
| Section Name | Liability in case of transfer of business |
| Updated 2024 Edition | GST Law Book PDF |
Relevant Rules and Forms for GST Section 85:
- Rule 19: Amendment of registration
Section 85 of Central GST – Liability in case of transfer of business1
Section 85 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 85(1) of CGST Act
Section 85(1): Where a taxable person, liable to pay tax under this Act, transfers his business in whole or in part, by sale, gift, lease, leave and license, hire or in any other manner whatsoever, the taxable person and the person to whom the business is so transferred shall, jointly and severally, be liable wholly or to the extent of such transfer, to pay the tax, interest or any penalty due from the taxable person upto the time of such transfer, whether such tax, interest or penalty has been determined before such transfer, but has remained unpaid or is determined thereafter.
Section 85(2) of CGST Act
Section 85(2): Where the transferee of a business referred to in sub-section (1) carries on such business either in his own name or in some other name, he shall be liable to pay tax on the supply of goods or services or both effected by him with effect from the date of such transfer and shall, if he is a registered person under this Act, apply within the prescribed time for amendment of his certificate of registration.
- Section 85 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. ↩︎