Retiring partner liability under GST continues until written intimation of retirement reaches the Commissioner within time.
A retiring partner remains jointly and severally liable for a firm's GST dues under Section 90 of the CGST Act until the Commissioner receives written intimation of retirement within the prescribed one-month period. Where no timely notice is proved, liability continues even after retirement, and a later intimation does not cut off the pre-existing recovery claim. On the facts noted, the partner admitted retirement but failed to show prompt notice to the competent authority, so the recovery action could not be defeated on the basis that only the firm was responsible.
Issues: Whether a retired partner remained liable for the firm's GST dues where no intimation of retirement was given to the Commissioner within one month, and whether the writ court should interfere with the recovery action.
Analysis: Section 90 of the Central Goods and Services Tax Act, 2017 provides that the firm and its partners are jointly and severally liable for tax dues, and that a retiring partner or the firm must intimate the date of retirement to the Commissioner by notice in writing. If such intimation is not given within one month, the retiring partner's liability continues until the date on which the intimation is received by the Commissioner. The petitioner admitted retirement from the firm but could not show that timely intimation was given to the competent authority. The record also showed that the claimed intimation was made much later, after recovery proceedings had already been initiated. In these circumstances, the petitioner could not avoid liability on the plea that the firm alone was required to intimate the authorities.
Conclusion: The petitioner remained liable under Section 90 until valid intimation of retirement was received, and no ground for interference was made out.
Ratio Decidendi: A retiring partner continues to remain liable for the firm's tax dues until the Commissioner receives written intimation of retirement within the prescribed period.
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AI Drafter ✕
TaxTMI 
