Section 85 – Liability in case of transfer of business of CGST ACT, 2017
85. (1) Where a taxable person, liable to pay tax under this Act, transfers his business
in whole or in part, by sale, gift, lease, leave and license, hire or in any other manner
whatsoever, the taxable person and the person to whom the business is so transferred shall,
jointly and severally, be liable wholly or to the extent of such transfer, to pay the tax, interest
or any penalty due from the taxable person upto the time of such transfer, whether such tax,
interest or penalty has been determined before such transfer, but has remained unpaid or is
determined thereafter.
(2) Where the transferee of a business referred to in sub-section (1) carries on such
business either in his own name or in some other name, he shall be liable to pay tax on the
supply of goods or services or both effected by him with effect from the date of such transfer
and shall, if he is a registered person under this Act, apply within the prescribed time for
amendment of his certificate of registration.
