Section 89 – Liability of Partners of Firm to Pay Tax
Section 89 of CGST Act, 2017 – Liability of Partners of Firm to Pay Tax Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Objective of Section 89 Section 89 ensures that GST dues of a partnership firm are not defeated by dissolution, retirement of partners or lack of assets in the firm. It fixes personal liability on partners for GST dues of the firm. 2. Statutory Provision – Section 89 Section 89(1): Notwithstanding anything contained in the Indian Partnership Act, 1932, where any firm is liable to pay any tax, interest or penalty under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment. Section 89(2): Where any partner retires from the firm, he or the firm shall intimate the Commissioner by a notice in writing within one month from the date of such retirement, and where such intimation is given, the retired partner shall not be liable for any tax, interest...