Individuals in Firms Liable for Tax Offences Under TN GST Act 2017 Unless Proving Ignorance or Due Diligence

Under the Tamil Nadu Goods and Services Tax Act, 2017, when a company commits an offence, individuals responsible for the company's business conduct at the time are also deemed guilty and subject to penalties. If the offence is linked to the consent, connivance, or negligence of any director, manager, secretary, or officer, they too are deemed guilty. This applies similarly to partnerships, LLPs, Hindu Undivided Families, or trusts, implicating partners, kartas, or managing trustees. However, individuals can avoid liability if they prove ignorance of the offence or demonstrate due diligence to prevent it. A "company" includes firms and associations, and "director" refers to firm partners.

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