What does this Section say?

Section 90 states that where a firm is liable to pay GST, the firm as well as every partner of the firm shall be jointly and severally liable for payment of tax, interest, or penalty.

Under partnership law, partners collectively manage the business and share profits and losses. Since partners are responsible for the affairs of the firm, GST law also makes them responsible for compliance and payment of statutory dues.

If a firm fails to discharge its GST obligations, the department may recover dues from the firm's assets or from any of the partners. The liability is joint and several, meaning the entire amount may be recovered from one partner if necessary.

Where a partner retires from the firm, he remains liable for GST dues up to the date of retirement unless the department is properly informed about the retirement. Therefore, timely amendment of GST registration and partnership records is essential.

This provision safeguards Government revenue by ensuring that tax recovery is not hindered merely because the firm lacks sufficient assets. It also encourages partners to actively monitor GST compliance and maintain proper records.

Example

A partnership firm has unpaid GST dues of ₹10 lakh. If the firm cannot pay, the department may recover the amount from any of the partners.

Key Points

• Firm and partners are jointly liable.
• Covers tax, interest, and penalty.
• Retired partners may remain liable for past dues.
• Ensures effective recovery of Government revenue.

In One Line

Partners are personally responsible for GST dues of the partnership firm.