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CMA Intermediate · Direct and Indirect Taxation · Computation of GST Liability

Meera retired from the partnership firm Sharma Traders on 31 July. The firm gave no written intimation of her retirement to the Commissioner until 20 October, when it was received. Under the CGST Act, 2017, Meera's liability for the firm's tax, interest or penalty continues up to:

Her liability continues until 20 October. Section 90 limits a retiring partner's liability to dues up to retirement only if intimation reaches the Commissioner within one month; otherwise, liability continues until the date the Commissioner receives the intimation.

  1. A31 July, the date of retirement, in all cases
  2. B31 August, one month after retirement
  3. C20 October, the date the Commissioner received the intimationCorrect
  4. DThe end of the financial year in which she retired

Explanation

Under Section 90, a retiring partner is liable for dues up to the date of retirement. If no intimation is given within one month of retirement, her liability continues until the date the Commissioner receives the intimation. Here that date is 20 October, not 31 July, since the one-month period expired without intimation.

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