Corporate liability for offences: officers and persons in charge can be criminally responsible under GST unless due diligence is shown. Where a company commits a GST offence, the company and every person in charge of and responsible for its business at the time are deemed guilty and liable; officers are also liable if the offence occurred with their consent, connivance or negligence. Similar deeming liability applies to partners, the karta of an HUF and managing trustees for partnerships, LLPs, HUFs and trusts. Liability does not arise if the person proves lack of knowledge or that all due diligence was exercised. 'Company' includes bodies corporate and firms or associations, and 'director' for a firm means a partner.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Corporate liability for offences: officers and persons in charge can be criminally responsible under GST unless due diligence is shown.
Where a company commits a GST offence, the company and every person in charge of and responsible for its business at the time are deemed guilty and liable; officers are also liable if the offence occurred with their consent, connivance or negligence. Similar deeming liability applies to partners, the karta of an HUF and managing trustees for partnerships, LLPs, HUFs and trusts. Liability does not arise if the person proves lack of knowledge or that all due diligence was exercised. "Company" includes bodies corporate and firms or associations, and "director" for a firm means a partner.
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