Litigation in case of amalgamation/de merger under GST of old COmpany

[Abhijeet Mane]

In case of a demerger or amalgamation, who will handle the existing litigation of the transferor if the transferor entity merges with another entity and then surrenders its registration?

[Sadanand Bulbule]

In terms of Section 87 of the CGST Act, in case of amalgamation or demerger, once the transferor entity merges and surrenders its registration, all existing litigation must be handled and defended by the transferee / resulting entity, and any proceedings continued against the non-existent transferor are void in law.

AI Summary

GST demerger/amalgamation after registration surrender: who continues pending litigation-transferor or successor-for notices, appeals, recovery In a GST demerger or amalgamation where the transferor entity merges into another entity and surrenders its registration, the continuing question is who assumes conduct and liability for pending GST litigation relating to the transferor. The issue seeks clarification on whether responsibility shifts to the transferee/successor entity or remains with the transferor despite cancellation of registration, and how proceedings are to be maintained when the original registrant ceases to exist for compliance and procedural purposes. The operative consequence is to determine the proper party for notices, adjudication, appeals, recovery, and other litigation actions after the transferor's registration is surrendered.