Section 89: Liability of directors of private company

Q: What does Section 89 of The Central Goods and Services Tax Act, 2017 (CGST) deal with?

Section 89 CGST pertains to "Liability of directors of private company". It is part of the The Central Goods and Services Tax Act, 2017, a legislation enacted by the Parliament of India. Section 89 of The Central Goods and Services Tax Act, 2017 (CGST) governs liability of directors of private company. As verified on 19 May 2026.

Q: Is Section 89 CGST still in force?

Yes, Section 89 of the The Central Goods and Services Tax Act, 2017 is currently in force across the Republic of India.

Q: What is धारा 89 CGST?

धारा 89 CGST is the Devanagari Hindi reference for Section 89 of the The Central Goods and Services Tax Act, 2017. Section 89 of The Central Goods and Services Tax Act, 2017 (CGST) governs liability of directors of private company. As verified on 19 May 2026.

Q: What is Dhara 89 CGST?

Dhara 89 CGST is the Roman Hindi reference for Section 89 of the The Central Goods and Services Tax Act, 2017. "Dhara" means "Section" in Hindi. Section 89 of The Central Goods and Services Tax Act, 2017 (CGST) governs liability of directors of private company. As verified on 19 May 2026.

Q: How to cite Section 89 of The Central Goods and Services Tax Act, 2017?

Cite as: "Section 89, The Central Goods and Services Tax Act, 2017 (CGST)" in legal briefs. For academic writing, use the BlueBook format: The Central Goods and Services Tax Act, 2017, § 89 (India).

Law on Tips Editorial Board

(1)

Notwithstanding anything contained in the Companies Act, 2013, where any tax, interest or penalty due from a private company in respect of any supply of goods or services or both for any period cannot be recovered, then, every person who was a director of the private company during such period shall, jointly and severally, be liable for the payment of such tax, interest or penalty unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.

(2)

Where a private company is converted into a public company and the tax, interest or penalty in respect of any supply of goods or services or both for any period during which such company was a private company cannot be recovered before such conversion, then, nothing contained in sub-section (1) shall apply to any person who was a director of such private company in relation to any tax, interest or penalty in respect of such supply of goods or services or both of such private company:

Provided that nothing contained in this sub-section shall apply to any personal penalty imposed on such director.