Chapter XVI - Liability to pay in certain cases
Section 90
Section 90: Liability of partners of firm to pay tax
Section 90 makes a firm and its partners jointly and severally liable for GST dues and sets a written retirement-intimation condition.
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This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Notwithstanding any contract to the contrary and any other law for the time being in force, 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, jointly and severally, be liable for such payment: Provided that where any partner retires from the firm, he or the firm, shall intimate the date of retirement of the said partner to the Commissioner by a notice in that behalf in writing and such partner shall be liable to pay tax, interest or penalty due up to the date of his retirement whether determined or not, on that date: Provided further that if no such intimation is given within one month from the date of retirement, the liability of such partner under the first proviso shall continue until the date on which such intimation is received by the Commissioner.
Introduction
A private agreement between partners does not displace the statutory GST liability.
Key takeaways
Firm and partners
The firm and each partner are jointly and severally liable for tax, interest and penalty.
Retirement notice
The retired partner or firm must inform the Commissioner in writing of the retirement date.
Continuing exposure
The retiring partner remains liable for dues up to retirement, even if determined later; if written notice is not given within one month, liability continues until notice reaches the Commissioner.
Firm and partners
The firm and each partner are jointly and severally liable for tax, interest and penalty.
Retirement notice
The retired partner or firm must inform the Commissioner in writing of the retirement date.
Continuing exposure
The retiring partner remains liable for dues up to retirement, even if determined later; if written notice is not given within one month, liability continues until notice reaches the Commissioner.
Practical checklist
Do
- Maintain partner-entry and retirement dates.
- Send and retain proof of timely written retirement notice.
- Reconcile firm GST dues through the retirement date.
Avoid
- Assume a private contract, merger date or restructuring automatically removes statutory GST liability.
Frequently asked questions
Does a private retirement deed alone end GST liability?
No. Section 90 requires written intimation to the Commissioner and preserves pre-retirement dues.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026