Who can be arrested in case of a Company/Firm/HUF under GST Act?

Who can be arrested in case of a Company/Firm/HUF under GST Offence?

Section: 137- Offences by companies

 (1) Where an offence committed by a person under GST Act is a company, every person who, at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of business of the company, as well as the company, shall be deemed to be guilty of the offence under GST Act and shall be liable to be proceeded against and punished accordingly this act. 

(2) Notwithstanding anything contained in sub-section (1) of this section (Section 137), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any negligence on the part of, any director of company, manager of company, secretary of company or any other officer of the company, such director, manager, secretary or any other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly this Act.

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(3) Where an offence under this Act has been committed by a taxable person being a partnership firm or a Limited Liability Partnership (LLP) or a Hindu Undivided Family (HUF) or a trust. the partner of firm or karta of HUF or managing trustee shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly and the provisions of sub-section (2) of this Section shall, mutatis mutandis, apply to such persons.

(4) Nothing contained in Section 137 of this Act shall render any such person liable to any punishment provided in GST Act, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence of this act.

Explanation. ––For the purposes of this section 137, ––

• “company” means a body corporate and includes a firm (partnership firm or a Limited Liability Partnership or other association of individuals; and
• “director”, in relation to a firm (partnership firm or a Limited Liability Partnership), means a partner in the firm

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