THE CENTRAL GOODS AND
SERVICES TAX ACT, 2017
LIABILITY TO PAY IN CERTAIN CASES
Section 87: Liability in case of amalgamation or merger of companies.
(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.
(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.