218.             ABC LLP, taxable person, is a limited liability partnership firm having following partners:

A: partner

B: partner & designated partner

C: designated partner

The LLP is dissolved on 1.4.2017 & the tax liability on this date is Rs. 5 lac. Discuss the taxability.

As per section 93 of the CGST Act, every partner of the firm is jointly & severally liable to pay Tax/ Interest/ Penalty due from firm upto the date of dissolution.

Since the tax liability of firm as on & upto date of dissolution i.e., on 1.4.2017 is Rs. 5 lacs, thus, according to above legal provision all the three partners are jointly and severally responsible to pay the Government dues of Rs. 5 lakh.