As per Section 27(4) of LLP Act, 2008 the liabilities of the limited liability partnership shall be met out of the property of the limited liability partnership. But as per section 90, 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. As per Explanation to section 94 of CGST Act (applicable for section 90 also), a “Limited Liability Partnership” formed and registered under the provisions of the Limited Liability Partnership Act, 2008 shall also be considered as a firm. Therefore, even though partner of LLP shall be liable for payment of GST dues of the firmwhen LLP could not pay the said dues.
Liability of Partner: GST Dues of LLP to be paid by Partners
I am the designated partner of LLP with 30% share in profits. The LLP could not pay the dues under GST law to the government. Department has initiated the recovery action against me. Shall I be responsible even when I am having a limited liabilty in LLP?