Section 58 – Liability in Certain Cases
Section 58 of CGST Act, 2017 – Liability in Certain Cases Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Objective and Scope of Section 58 Section 58 deals with tax liability in special situations where goods belonging to a taxable person are kept or stored at the premises of another person. This provision ensures that: Tax liability does not escape due to ownership–custody mismatch Government revenue is protected in storage-related arrangements 2. Statutory Provision – Section 58 Section 58: Where any goods belonging to a taxable person are kept or stored at any place belonging to another person, the taxable person and the person at whose place such goods are kept or stored shall be jointly and severally liable to pay the tax payable on such goods, if such goods are supplied without payment of tax. 3. Meaning of Joint and Several Liability Under joint and several liability: Both persons are treate...