Institute of Chartered Accountants of India Publishes Updated GST Liability Handbook for Special Categories

The Institute of Chartered Accountants of India (ICAI) has issued an updated Goods and Services Tax (GST) handbook detailing the legal liabilities of directors, partners, business transferees, and legal heirs, specifically referencing Sections 85 through 94 of the Central Goods and Services Tax (CGST) Act. This manual outlines statutory provisions governing tax recovery when business entities undergo structural changes, amalgamations, transfers, or the demise of proprietors. Under the CGST Act, statutory provisions ensure that tax authorities can recover dues from successor entities, directors of private companies under liquidation, or legal representatives of deceased taxpayers.

The newly released ICAI handbook interprets these legal sections to clarify the extent of personal and corporate liability in complex succession and restructuring scenarios. Tax professionals rely on such guidance to navigate departmental audits and recovery notices directed at secondary liable parties. Chartered accountants and tax advisors should study the handbook to safeguard clients undergoing business restructuring or corporate liquidation. Practitioners must review existing partnership deeds, directorship covenants, and estate planning documents to ensure adequate protection against unexpected tax demands.

Bottom line: Utilize the updated ICAI guide to protect your clients from unforeseen liability exposures under Sections 85 to 94 of the CGST Act.