THE CENTRAL GOODS AND
SERVICES TAX ACT, 2017
LIABILITY TO PAY IN CERTAIN CASES
Section 85:
Liability
in case of transfer of business.
(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.
(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.