Liability in case of company in liquidation
Section 88, CGST Act
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On liquidation of a company, the liquidator must notify the department within 30 days; the officer notifies the dues, and a private company’s directors can be made liable if the dues cannot be recovered from the company.
What this means in practice
The parts that actually decide cases — the things a practitioner checks first.
The liquidator must give notice within thirty days of appointment; the Commissioner notifies the amount within three months.
Read with the IBC: dues not admitted in an approved resolution plan stand extinguished, so this section bites mainly in liquidation, not in a successful resolution.
How this provision is built
The skeleton, clause by clause — useful when a notice cites a specific sub-clause.
The exact words of the law
1,430 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
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(1) When any company is being wound up whether under the orders of a court or Tribunal or otherwise, every person appointed as receiver of any assets of a company (hereafter in this section referred to as the "liquidator"), shall, within thirty days after his appointment, give intimation of his appointment to the Commissioner.
(2) The Commissioner shall, after making such inquiry or calling for such information as he may deem fit, notify the liquidator within three months from the date on which he receives intimation of the appointment of the liquidator, the amount which in the opinion of the Commissioner would be sufficient to provide for any tax, interest or penalty which is then, or is likely thereafter to become, payable by the company.
(3) When any private company is wound up and any tax, interest or penalty determined under this Act on the company for any period, whether before or in the course of or after its liquidation, cannot be recovered, then every person who was a director of such company at any time during the period for which the tax was due shall, jointly and severally, be liable for the payment of such tax, interest or penalty, unless he proves to the satisfaction of the Commissioner that such 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.
High Court cases on this section
Judgments in our index that cite this provision. Being listed does not make a case good law — it may have been appealed or distinguished since. Read it before relying on it.
PATANJALI FOODS LIMITED v. THE ASSISTANT COMMISSIONER (ST) (FAC)
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Smt.K.Malathi v. State Tax Officer
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Koyas and Sons v. The Assistant Commissioner (ST) (FAC)
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What changed, and when
The amendment trail, newest first — because the version that applies to your case depends on the period.
2017-07-01 · Commenced
Provision as originally enacted in the CGST Act, 2017 (Act 12 of 2017) and brought into force w.e.f. 01-07-2017.
Where this comes from
Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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