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 85–94) 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 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. | 87 |
| Section Name | Liability in case of amalgamation or merger of companies |
| Updated 2024 Edition | GST 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.
- 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. ↩︎